Zanzibar vs. Bali, Maldives, Seychelles & Mauritius

Introduction

For decades, international investors looking for beachfront property have focused on destinations like Bali, Maldives, Seychelles, and Mauritius. These markets are established, highly touristic, and home to luxury resorts and branded villas. But with maturity comes saturation: rising entry costs, stricter regulations, and limited opportunities.

Enter Zanzibar, a breathtaking island off the coast of Tanzania that is rapidly emerging as one of the best places to invest in Africa. With a booming tourism sector, affordable entry prices, and a favorable legal framework, Zanzibar offers a chance to get in early—before the market fully matures like Bali or Mauritius.

Tourism Growth: Zanzibar’s Early-Stage Advantage

Tourism is the foundation of real estate demand, and Zanzibar is on a steep upward trajectory.

• 736,000 international visitors in 2024 (+15.4% YoY).
• Average stay: 8 nights per visitor, reflecting strong destination engagement.
• $1 billion in tourism revenue in 2024, contributing 27% to GDP.
• Peak bed occupancy at 79.3% in high season.

Compare this to Bali, which receives over 6 million tourists annually, or Mauritius, with 1.4 million visitors. Zanzibar is still in its early stages, meaning demand for accommodation is rising fast—but the real estate market hasn’t yet caught up. This creates a rare window where tourism growth outpaces property saturation, offering investors strong rental yields.

Property Prices: Affordable Entry Compared to Other Islands

One of Zanzibar’s biggest draws for investors is pricing.

At The House Residence Azure Zanzibar, villa prices start at just $310,000 for a one-bedroom garden villa and range up to $720,000 for a beachfront family villa. By comparison:

• Mauritius: entry prices for luxury beachfront villas often exceed $1.2 million.
• Seychelles: limited availability, with prime villas priced above $1.5 million.
• Maldives: properties are almost entirely resort-owned, with few ownership opportunities.
• Bali: villas near tourist hubs cost $500,000–$1 million, with higher legal risks for foreigners.

Zanzibar offers branded villas with resort-style amenities at a fraction of these costs, while still providing strong upside in capital appreciation.

Legal Framework: Clear & Investor-Friendly

Unlike Bali or Maldives, where foreign property ownership is restricted, Zanzibar offers a transparent system for international buyers:

• 99-year renewable leasehold titles.
• Ownership possible under a personal name, local company, or offshore structure (with ZIPA approval).
• Standard acquisition timeline: 60–90 days.
• Low barriers: minimum investment from $100,000 qualifies for residency by investment.

This system gives foreign investors long-term security without the complications seen in other island destinations.

Taxes & Fees: Lower Than Competitors

Zanzibar’s tax framework is another advantage compared to other Indian Ocean markets:

• Stamp duty: 1%
• Transfer tax: 1–5% (depending on district)
• Annual property tax: ~$22
• Ground rent: $100–200/year
• Capital gains: applicable only if profit isn’t documented

In Mauritius, by contrast, transfer taxes are 5%, and in Seychelles, annual property-related fees are much higher. Zanzibar’s light tax burden ensures higher net yields for investors.

Rental Yields & ROI: Competitive Returns

Real estate investment in Zanzibar is already showing strong performance:

• 12% ROI at 65% occupancy
• 15% ROI at 75% occupancy
• Zanzibar’s average occupancy in 2023 was 68.4%, with high-end resorts outperforming the average.

These figures place Zanzibar ahead of Mauritius and Seychelles in terms of yield, and on par with or above Bali’s short-term rental returns. The key difference: Zanzibar is still in the early stage, so prices are lower, and appreciation potential is higher.

Amenities & Lifestyle Appeal

Investors are not just buying bricks and mortar—they’re buying into a lifestyle. At The House Residence Azure Zanzibar, owners benefit from:

• Outdoor cinema under the stars
• Two signature restaurants
• Spa and wellness center
• Gym and sports facilities
• 24/7 concierge and property management

This mirrors the luxury found in Mauritius or Seychelles but at significantly lower entry cost. It also ensures strong appeal to high-net-worth individuals seeking branded residences in emerging markets.

Why Zanzibar Now?

1. Tourism is booming – 15% growth in 2024, record arrivals in 2025.
2. Legal security – 99-year leases, ZIPA-approved ownership, transparent registration.
3. Attractive pricing – luxury villas from $310,000 vs. $1M+ in other islands.
4. High yields – 12–15% ROI potential with mandatory rental pool.
5. Residency by investment – from just $100,000.

Together, these factors position Zanzibar as the “early-stage Bali”—an island that still offers room to grow, at a fraction of the cost, with clearer legal protection and tax efficiency.

Conclusion

For investors comparing Zanzibar vs. Bali, Maldives, Seychelles, or Mauritius, the difference is clear. While those markets are mature and saturated, Zanzibar is just beginning its rise.

With affordable villa prices, a favorable legal framework, low taxes, and double-digit ROI potential, Zanzibar offers a rare opportunity to enter an emerging luxury market early. As tourism demand accelerates and infrastructure expands, today’s investors stand to benefit from both strong rental income and long-term capital appreciation.

In short: if Bali was the investment story of the last 20 years, Zanzibar is the story of the next 20.

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