Zanzibar’s appeal as a tropical paradise is no longer limited to short-term tourists – it’s increasingly drawing expats and property investors seeking a slice of island life. The government has actively encouraged this trend by making it easier for foreigners to own real estate (via long-term leases), and infrastructure is rapidly improving (new roads, and even small airports planned in areas like Paje and Nungwi). With its pristine beaches, rich Swahili culture, and laid-back lifestyle, Zanzibar offers an unbeatable mix of lifestyle and investment potential. But where on this idyllic island should one settle or invest? Below we highlight five top neighborhoods in Zanzibar – each with its own unique vibe and promise.
Paje, on the southeast coast, has transformed from a sleepy fishing village into Zanzibar’s hottest spot for expats and investors. Its wide, palm-fringed lagoon and steady tradewinds make it one of the world’s premier kite-surfing destinations, attracting a vibrant community of adventurers and digital nomads. By day, you’ll see colorful kites dotting the sky; by evening, bonfires and acoustic music give the beach a magical, bohemian vibe. Despite the growth, Paje retains a relaxed charm – you can still work with “your toes in the sand” at beachside cafes with Wi-Fi, or join yoga sessions and snorkeling trips offshore.
Investment potential: Paje is one of the most sought-after locations for real estate investment in Zanzibar. Tourism here is surging and the area enjoys high occupancy rates, including long-stay visitors drawn by the kite-surfing and co-working scene. This has led to rising demand for quality accommodation – from boutique beach bungalows to new condo projects – yet property prices are still relatively low by global standards. Investors are seeing strong rental yields thanks to Paje’s popularity and “rising international profile,” which together are accelerating the coastal property market. The government is also boosting connectivity, with a new airstrip planned in Paje for quick flights to the mainland. Overall, Paje offers an enticing combination of lifestyle and returns. (It’s no surprise that new luxury developments – such as the Vela project – have chosen Paje for their location, betting on the area’s continued rise.)
Just south of Paje lies Jambiani, a picturesque fishing village that offers a more tranquil alternative to its bustling neighbor. Jambiani is famed for its “special vibes,” where a state of peace and tranquility reigns supreme along a very long white beach and turquoise, crystalline sea. Life moves at a slower pace here: fishermen sail in traditional dhows, and local women tend seaweed farms at low tide. For expats and digital nomads craving authenticity, Jambiani provides immersion in Zanzibari village culture – you can chat with friendly locals, learn traditional dhow-building, or just enjoy the quiet, laid-back lifestyle. Many guesthouses and a few modern villas cater to remote workers now, offering reliable internet in a serene setting. Even with Paje’s lively restaurants and bars only a short drive away, Jambiani feels like a peaceful sanctuary.
Investment potential: Jambiani remains largely unspoiled, but it hasn’t escaped notice. In recent years many expatriates have decided to live here, and tourist interest is steadily increasing. The village’s authenticity and natural beauty give it great appeal for eco-tourism and boutique accommodations. From an investment standpoint, Jambiani is an opportunity to “get in early” on an emerging area. Small resorts and villas have begun to pop up, though the community still retains its African authenticity and beautiful energy. Property prices are generally more affordable than in Paje or Nungwi, and the large beachfront plots allow for creative projects (private homes or even a quiet beach lodge). In short, Jambiani is perfect for those seeking a tranquil lifestyle investment – you can enjoy the peaceful vibes now, with confidence that demand will grow as Zanzibar’s southeast coast continues rising in popularity.
On the northern tip of Zanzibar, Nungwi has long been famous as a tourism hotspot – and for good reason. This bustling beach town boasts azure waters and powder-white sands that are consistently ranked among the most beautiful in East Africa. Come evening, Nungwi offers stunning sunsets sinking into the Indian Ocean, often enjoyed with a cocktail in hand. The vibe here is lively and social: by day, travelers snorkel coral reefs or visit the local sea turtle conservation pond; by night, the shoreline comes alive with beach bars, music, and a vibrant nightlife scene. Nungwi caters heavily to international visitors, so expats will find plenty of familiar comforts – from dive centers and tour operators to cafes with decent internet for remote work. It’s a place where you can be as active or relaxed as you want, blending resort luxury with backpacker energy.
Investment potential: As Zanzibar’s best-established resort area, Nungwi offers a somewhat different investment profile. The tourism infrastructure is mature – dozens of hotels, restaurants and souvenir shops line the beach – meaning a consistent high demand for accommodations. For investors, this can translate into solid rental income if you tap into Nungwi’s large tourist market. Many boutique hotels and beach bungalows here enjoy high occupancy throughout the year. There are still opportunities for new projects (or renovating older properties), especially as the government continues to improve the north’s accessibility. In fact, a new small airport is being built in Nungwi to facilitate short-haul flights, which will further boost visitor numbers. Despite its popularity, Nungwi still has quieter corners – just a few minutes inland or down the coast, you can find calm residential areas where expats live among friendly local communities. Modern amenities are arriving too (a new supermarket is under construction, for example). All of this bodes well for Nungwi’s property values. If you’re seeking a bustling, high-energy location – whether to run a guesthouse or simply enjoy an active social scene – Nungwi is the top contender in Zanzibar’s north.
Nungwi’s main beach is renowned for its soft white sand and crystal-clear water, along with some of Zanzibar’s most spectacular sunsets. This popular coastal village offers a lively mix of beach resorts, local culture, and marine activities, making it a magnet for tourists and an appealing base for expats.
For those who appreciate culture and history, Stone Town (Zanzibar’s old city) is unparalleled. This UNESCO World Heritage Site is a maze of narrow alleyways, carved wooden doors, and centuries-old buildings reflecting a unique blend of Swahili, Arab, Indian, and European influences. Living in Stone Town means being steeped in history: you might reside in a restored Arab townhouse with ornate balconies, or stroll past ancient mosques and colonial-era consulates on your way to the market. Despite its antiquity, Stone Town is very much alive – it’s Zanzibar’s cultural and commercial hub. Expats here enjoy eclectic cafes, rooftop restaurants with harbor views, museums, art galleries, and lively bazaars. There’s even a growing number of coworking spaces tucked into renovated buildings, catering to remote workers who want an inspiring, atmospheric setting. Every evening, the Forodhani Gardens food market comes alive by the seafront, and the call to prayer mingles with Taarab music in the air. The vibe is cosmopolitan meets traditional, and no two days are the same.
Investment potential: Stone Town offers something the beach villages do not – an urban lifestyle with modern conveniences. The city has the island’s best infrastructure (paved roads, reliable utilities, banks, shops, hospitals), which “make it easy for residents to go about daily errands”. Real estate here ranges from historic townhouses (oozing with character, often converted into boutique hotels or guesthouses) to contemporary apartments on the city’s edges. Owning a piece of Stone Town can be both a lifestyle choice and a savvy investment: the steady flow of tourists interested in culture means there’s demand for charming rental stays. Some investors buy old houses to renovate into high-end holiday rentals or cafes, benefiting from Stone Town’s ever-present stream of visitors. Meanwhile, as Zanzibar modernizes, new developments on the outskirts cater to long-term residents (with parking, elevators, etc., which the old quarter lacks). Overall, Stone Town is ideal if you seek immersive culture and community. The rental yields may not match a beachfront villa, but the stability and year-round occupancy (from diplomats, NGO workers, and cultural tourists) are a plus. And, of course, there’s an intangible benefit: owning property in a World Heritage city imbued with history and soul.
A view of historic Stone Town, Zanzibar’s cultural capital. Living here means enjoying rich heritage – from the 17th-century Old Fort (foreground) to the maze of coral-stone buildings beyond – along with modern comforts like cafés, markets, and paved streets. It’s a favored locale for expats who appreciate history and convenience in equal measure.
Fumba Town represents a new frontier for expats and investors in Zanzibar – it’s not just a neighborhood, but a master-planned “new city” on the Fumba Peninsula (about 20 minutes southwest of Zanzibar City). Developed by CPS Africa with a focus on sustainability, Fumba Town is designed as a fully integrated community: residential villas and apartments alongside schools, a clinic, co-working spaces, shops, restaurants, parks and even a seafront promenade. The vibe here is very different from traditional villages – it’s modern, organized, and international. You’ll find eco-friendly architecture, solar panels, and permaculture gardens woven into the design. The community already hosts a mix of expats, young families, and local professionals who enjoy the secure, clean, and family-friendly environment. Regular events like farmer’s markets, outdoor movie nights, and an annual music festival create a lively social scene, “underlining its international appeal.” In essence, Fumba Town offers the comforts of a Western-style suburb with a tropical twist – you have your gym, supermarket, and bakery, but also a private beach and palm trees in your backyard.
Investment potential: Fumba Town is one of Zanzibar’s flagship real estate projects and the fastest-selling development in the country. For investors, it combines peace of mind with growth potential. Because it’s a planned development, buying here comes with clear title (through long leases) and professional property management – an attractive option for foreign buyers. The project spans 150 acres with 5,000 units in the master plan (over 700 homes are already completed as of 2024), ranging from affordable apartments to luxury villas, so there are entry points for various budgets. Fumba’s focus on sustainable urban living – solar energy, community wastewater management, and green spaces – aligns with global trends and adds long-term value. Early investors here have seen property values climb as each phase sells out. Rental demand is also emerging: some units are serving as long-term rentals for expat workers, and others as holiday rentals for tourists seeking quiet luxury outside the main resorts. Essentially, Fumba Town offers a turnkey way to invest in Zanzibar’s future growth. You’re not just buying a home, but a vision – one of a thriving expat enclave that combines island beauty with reliable infrastructure and sustainability. For many, that combination is hard to resist.
Jambiani’s tranquil shoreline at low tide, with tidal pools reflecting the sky. This serene village – framed by coconut palms and gentle waves – showcases the quieter side of Zanzibar’s coastal life. Its unspoiled beauty and peaceful atmosphere have begun to attract expats seeking an authentic lifestyle by the sea.
Zanzibar is an island of contrasts, and its top neighborhoods for living or investing each offer a distinct flavor of paradise. Whether you’re drawn to the action and opportunity in Paje, the soulful calm of Jambiani, the festive buzz of Nungwi, the historic charm of Stone Town, or the innovative community of Fumba Town, you’ll find a place that suits your vision of the good life. Many expats choose Zanzibar for its unrivaled lifestyle – the sunshine, sea, and smiles – and end up appreciating the investment returns as a bonus. As the island’s infrastructure and global profile continue to improve, owning property here is increasingly seen as a savvy move. But beyond the numbers, the true reward is waking up in Zanzibar each day, surrounded by natural beauty and the rich culture of the Spice Islands.
In the end, the “best place to live in Zanzibar” depends on your personal vibe. The good news is that this enchanting island has something for everyone. From kitesurfing afternoons in Paje to sunset dinners in Nungwi, from Stone Town’s winding alleys to Fumba’s tree-lined avenues, Zanzibar invites you to not just invest in property, but to invest in a vibrant way of life. Welcome to the island!
