Zanzibar Tourism Surges as Luxury Investors Take Notice
Written by Sixteen Ramos
Once a hidden gem, Zanzibar is now one of the fastest-rising destinations and its ascent has only just begun. In July 2025 alone, the destination welcomed over 106,000 international visitors, marking a 55% increase year-on-year and an astonishing 106% increase over the past two years. This surge in arrivals cements Zanzibar’s position as not just a tropical escape, but a rising frontier for global travel and luxury investment.
From Hidden Gem to Luxury Magnet
Long known to seasoned travellers for its blend of Swahili culture, turquoise waters, and historic spice trade roots, Zanzibar is now attracting the attention of some of the world’s most prestigious hospitality brands.Jumeirah recently opened its $50,000 a night first private island resort in the region, a high-touch, low-footprint concept catering to UHNW guests. Four Seasons is currently under development, with its flagship Zanzibar property due to open in 2027, while Anantara is moving ahead with its own beachfront resort.
This influx of top-tier brands reflects broader confidence in Zanzibar’s trajectory—not only as a leisure destination, but as a high-yield investment environment.
Real Estate Momentum Signals Investor Confidence
The ripple effects of Zanzibar’s tourism momentum are now being felt in the real estate market. Coastal development activity has accelerated, driven by rising demand for private residences with resort-style amenities.Among the standout indicators is the recent performance of Sandbank Villas, a luxury beachfront residential project on the island’s northeast coast. Its latest release—13 Oceanview Villas—sold out within one month of launch.
Merging world-class architecture by Rob Steul with one of Zanzibar’s most striking waterfront locations, the project has drawn interest from buyers across Europe, the Middle East, and as well as North America, many of whom view it as both a lifestyle asset and an offshore investment play.
According to project representatives, inquiries have increased steadily alongside the island’s tourism numbers, with investors citing a mix of rental potential, long-term appreciation, and favourable offshore ownership frameworks as core motivators. Some seasoned buyers view it as echoing the trajectory of Mauritius over the last decade — where comparable property prices are now 120–150% higher than those at Sandbank Villas.
Zanzibar's Next Chapter
While other Indian Ocean destinations have matured, Zanzibar offers a compelling mix of accessibility, untapped coastline, and a government supportive of foreign investment. Infrastructure is improving, with expanded international airlift and hospitality training programs under development.For now, the story is one of convergence: tourism growth is being matched by a new wave of luxury-led development, both from hospitality groups and private investors. As one of the few remaining places where five-star brands and private investors are entering the market at roughly the same time, Zanzibar is now shifting from getaway to opportunity — attracting capital, high-end development, and world-class design in one sweeping move.
