Villa in Zanzibar 2026 – How to Buy a Villa in Kendwa with a Rental Pool? Prices, ROI and Legal Steps

Dreaming of your own villa in Zanzibar? Imagine mornings on a coral-stone veranda, just a few minutes’ walk from the turquoise water of Kendwa. You spend three weeks a year here on holiday, and for the rest of the year your villa earns in US dollars – without any effort on your part. Sounds tempting, right?

If you want to buy a villa in Zanzibar, you’ve come to the right place. In our complete guide to investing in Zanzibar real estate, we covered prices across the island, leasehold and the Golden Visa. This article goes one step further. You’ll learn how much a villa in Kendwa costs in 2026, how a rental pool works, how to safely buy off-plan property and why a resort model with a professional operator beats managing a rental on your own. As our example, we analysed Liyongo Kendwa – one of the most interesting developments on the island’s north coast.

Key facts about villas in Zanzibar in 2026

• Record tourism: 917,167 international arrivals in 2025 (approx. +25% year on year) and 633,228 from January to August 2026.
• Villa prices in Kendwa (Liyongo): from USD 145,000 for a studio to USD 525,000 for a three-bedroom villa (+15% VAT), furniture pack included.
• Secure structure: an individual 99-year leasehold under the Condominium Act.
• Residency: an investment of USD 100,000+ in a ZIPA-approved project.
• Projected returns: 11.2–11.8% a year (average for years 1–5) and payback in approx. 8.5–8.9 years, according to the developer’s Pricing & ROI document.

Why buy a villa in Zanzibar in 2026?

Zanzibar is no longer just an exotic postcard. It is one of the fastest-growing tourism markets in the Indian Ocean, and the numbers speak for themselves:

Source: Office of the Chief Government Statistician Zanzibar (OCGS), as reported by The Citizen – 2025 arrivals, The Citizen – August 2026 record and TanzaniaInvest – hotel bed occupancy.

Here is why investors from all over the world are choosing to buy a villa in Zanzibar:

• Growing tourism demand – the island is approaching one million visitors a year.
• Hotels full in high season – over 92% occupancy in August 2026.
• Income in USD – prices, rates and payouts are in US dollars.
• Residency rights for the investor and family with an investment from USD 100,000.
• Year-round climate – Zanzibar is a holiday destination for most of the year.

Kendwa and Nungwi – the best location for an investment villa

Zanzibar’s north-west tip has an advantage that cannot be copied: the ocean doesn’t retreat at low tide. On the east coast (Paje, Jambiani) the water can pull back several hundred metres, while in Kendwa you can swim throughout the tide cycle. That’s why the north fills up when the east empties, and why Kendwa real estate enjoys some of the most stable tourism demand on the island. Add beach bars, boats and famous sunsets, with the airport and Stone Town about an hour’s drive away.

Why a resort villa with a rental pool beats a standalone villa

This is the most important lesson for every investor. Zanzibar’s hotels are full in high season, but private short-term rentals on Airbnb perform far worse:

The takeaway? Tourists choose professionally managed resorts. That’s why the smartest way to approach a Zanzibar real estate investment is a resort villa with a rental pool – the building is yours, while bookings, marketing, housekeeping and guest service are run by one experienced operator.

How does a rental pool work?

All villas in the resort are let as a single hotel. Revenue goes into a shared pool, the operator covers operating costs, and the surplus is paid out to owners according to the rules set out in the agreement. Benefits for the owner:

• hotel-level occupancy rather than private-rental occupancy,
• no remote management – you receive reports and payouts,
• one booking and marketing system instead of fighting for online visibility,
• a consistent standard across the resort that protects your villa’s value.

How is the owner’s income calculated? The Liyongo rental pool in 6 steps

According to the developer’s Pricing & ROI document, the following are deducted from the villa’s rental income in order:

1. 15% VAT charged on the nightly room rate,
2. 15% online travel agency (OTA) commission – only on bookings made through those channels,
3. an annual service charge based on the plot size,
4. direct consumables, such as toiletries and sundries,
5. insurance, the FF&E replacement reserve and metered utilities,
6. a 35% management fee – what remains is the owner’s income.

This transparent breakdown is standard for professional hotel rental pools – you can see exactly where your result comes from.

Liyongo Kendwa – 60 villas in a managed resort

Liyongo Kendwa is a boutique resort of 60 villas sold on a leasehold basis, located in the village of Kendwa itself, on higher ground among trees, a short walk from the beach. Every villa has its own plot and more garden than floor area, and from the Kaya type upwards – a private plunge pool. The architecture combines local materials: coral stone, makuti thatch and lime plaster, with deep verandas oriented to catch the sea breeze. Planned facilities include a lagoon lounge, spa, open-fire kitchen, rooftop bar and an artisan village.

Why does this project stand out in the market?

• Individual legal title – each villa has its own leasehold, not a share in a fund or company.
• One professional operation – on-site management, central reservations and joint marketing for all 60 villas.
• Experienced team – founder Christopher Nash, co-founder Victor Delo (over a decade in Tanzanian tourism) and COO Roberto Pelliccia (over 30 years in hotel operations across Africa, Asia and the Caribbean).
• Proven contractor – Mazrui Building Contractors, a Zanzibar Class 1 building contractor operating since 1953.
• Quarterly payouts from the rental pool and transparent owner reporting.
• Furniture included – every villa is sold with a furniture pack and is ready to rent from day one.
• Integration with the Kendwa community – the project was developed together with the village leader, building long-term stability for the investment.

Previous slideNext slide

Zanzibar villa prices 2026 – Liyongo Kendwa

Prices according to the Liyongo price list (Pricing & ROI document, October 2026), in USD excluding 15% VAT. Every price includes a furniture pack. Prices including VAT calculated by Globihome. Note the number of villas – the largest types are very limited: only 6 Pamoja villas and 2 Jumba villas will be built.

Return on investment in a Zanzibar villa in 2026

The key figures come from the Liyongo Pricing & ROI document. For each villa type, the developer projects the nightly rate, occupancy, return on investment and payback period – as an average for years 1–5 after handover. The model was also covered by How We Made It In Africa, which highlighted the developer’s conservative assumptions.

Where do these assumptions come from? Occupancy is based on the Zanzibar average, which various sources put at 65–70% – and Kendwa consistently exceeds it year on year. The developer set nightly rates based on an analysis of 32 competing resorts and hotels, narrowed down to the 12 top 3–5* properties in Kendwa and neighbouring Nungwi. ROI is calculated from villa handover and excludes VAT on the purchase price.

Example: how much does a Makao villa owner earn?

An income of USD 24,495 a year is approx. 12.6% of the Makao villa’s net price (USD 195,000), or approx. 10.9% once VAT is included (USD 224,250). On top of that, you get three weeks of holiday a year in your own furnished villa. For comparison, an average private Airbnb rental in Kendwa earns approx. USD 7,400 a year, according to AirROI.

The developer notes that the projections are illustrative and non-binding – the contractual documents are what count.

Globihome key tip: request the Financial Information Pack – a package covering current prices, the payment schedule, ownership documents, operating costs and the financial model’s assumptions. Liyongo provides it free of charge to anyone interested.

How to safely buy a villa in Zanzibar – a step-by-step guide

1. Choose your villa type and budget

Decide whether you’re looking for a compact studio to start with (from USD 145,000) or a three-bedroom family villa with a pool. Every price includes a furniture pack. Remember to add 15% VAT to the price.

2. Download the Financial Information Pack

Review the prices, schedule, ownership structure and rental pool rules. This document lets you compare the project with other investments.

3. Reserve your villa

A payment of 5% of the price on signing the reservation form takes the chosen villa off the market. You have 15 days to review the documents calmly – after that, the reservation becomes non-refundable.

4. Have an independent Zanzibar lawyer review everything

Zanzibar has a separate land law system from mainland Tanzania. Your lawyer should review the sale and purchase agreement (SPA), the lease, the management agreement and the rental pool agreement – something the developer itself recommends.

5. Sign the contract and pay in line with construction progress

Using the Kaya villa (USD 245,000 net) as an example:

6. Collect your keys and start earning

First handovers are planned for Q4 2028. After handover, the villa joins the rental pool and you receive quarterly reports and payouts. Congratulations – you’ve just become the owner of a villa in Zanzibar!

What are the legal requirements for buying a villa in Zanzibar?

In Zanzibar, all land belongs to the state, so foreigners buy a leasehold of up to 99 years, usually in renewable 33-year terms, registered with the Zanzibar Land Registry. At Liyongo, each villa is registered individually under the Condominium Act, and the lease governs use, letting, resale and inheritance.

The framework for investors is set by the Zanzibar Investment Act No. 10 of 2023. ZIPA approves investments and issues investment certificates, and an investment of USD 100,000+ in an approved project qualifies the investor, their spouse and up to four children for a residence permit, renewable every two years.

What are the taxes and costs of buying a villa in Zanzibar?

• 15% VAT – added to the price of a villa bought from a developer.
• Hotel levy – charged on tourist rental income: 12% for hotel establishments, 15% for residential houses let to tourists.
• Capital gains tax – 20% of the gain for non-residents on sale.
• Legal fees – for an independent Zanzibar lawyer.

Rental income should also be declared in your country of tax residence – consult a tax adviser on the rules.

Summary and key facts about buying a villa in Zanzibar:

• Growing market – almost one million tourists a year and a record August 2026.
• Villa prices in Kendwa – from USD 145,000 to USD 525,000 net (+15% VAT).
• Resort model – a rental pool delivers hotel-level occupancy with no remote management.
• Legal security – an individual 99-year leasehold under the Condominium Act.
• Return on investment – projected 11.2–11.8% a year and payback in approx. 8.5–8.9 years.
• Bonus – a furnished villa, three weeks of holiday a year and residency from USD 100,000.

Buying a villa in Zanzibar in a managed resort is an excellent way to combine your own place on a tropical island with income in US dollars. To learn more about Liyongo Kendwa, request the free Financial Information Pack at liyongo.co or email invest@liyongo.co. Feel free to mention Globihome.