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Real Estate Market Outlook 2025: Price Trends & Yields in Paje

Zanzibar’s real estate market has entered a new phase of maturity — driven by rising tourism, investor-friendly policies, and increasing international visibility. At the heart of this growth lies Paje, a coastal destination that perfectly captures the island’s shift toward boutique luxury and sustainable returns. As 2025 unfolds, investors are finding in Paje what other Indian Ocean destinations have already priced out: strong yields, low entry costs, and long-term value.

Rising Demand and Strong Fundamentals

Paje’s property market has grown steadily in recent years, supported by both tourism and lifestyle migration. Beachfront apartments that once sold for under $100,000 now start from around $120,000, while larger two-bedroom and duplex units exceed $700,000–$1 million. This appreciation reflects real market strength rather than speculation — fueled by limited supply, stable tourism, and Zanzibar’s growing status as a premium travel destination.

Unlike fast-boom markets elsewhere, Zanzibar’s rise has been steady and strategic. The government’s focus on high-quality, eco-conscious developments has attracted a new generation of investors who value both return and responsibility. With 12–15% projected ROI across well-managed projects like Samawa Beach Resort, the island is quickly establishing itself as East Africa’s most compelling real estate story.

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Government Incentives Strengthen Investor Confidence

Zanzibar’s investment framework is designed to welcome international buyers while maintaining transparency and stability. Through the Zanzibar Investment Promotion Authority (ZIPA), investors can acquire long-term leaseholds up to 99 years, benefit from 0% property purchase tax, and freely repatriate profits.

This regulatory clarity — paired with Zanzibar’s stable currency environment and infrastructure improvements — gives foreign investors confidence that their capital is protected. It also sets Zanzibar apart from other emerging island markets, where ownership laws can be restrictive or opaque. As a result, the island continues to attract attention from both private investors and international developers seeking reliable returns.

Paje’s Outlook: Boutique Luxury and Sustainable Growth

Looking ahead, all signs point toward continued upward momentum. Paje’s mix of natural beauty, accessibility, and community-driven development appeals to both travelers and investors alike. The area’s expanding wellness and hospitality sectors create consistent rental demand, while new projects are setting higher standards for design and sustainability.

As more investors look for tangible, high-yield assets outside traditional markets, Zanzibar — and especially Paje — is emerging as a smart, lifestyle-aligned investment choice. The year 2025 marks a turning point: Paje is no longer just Zanzibar’s hidden gem, but its flagship market for long-term, high-performing real estate investments.

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