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Nungwi
North Coast Zanzibar

Zanzibar's premium north coast address. Calmer waters, year-round resort demand, an established international buyer community, and a luxury hotel market that validates the area's investment fundamentals.

10–15% Gross Rental Yield
$80K Entry Price
8% Est. Annual Appreciation
240 New Units Pipeline 2026
Paje Nungwi Fumba Stone Town All Areas →

Nungwi sits at the northern tip of Zanzibar's main island, where the calmer Indian Ocean waters and white-sand beaches have made it the island's most established resort destination. This is where the five-star hotel brands come — where RIU, Mantis, and international operators have validated the market at scale. That institutional validation has a direct effect on property values and rental demand.

The investment profile here differs from Paje. Where Paje buyers typically prioritise maximum rental yield, Nungwi attracts the holiday home buyer who wants personal lifestyle use alongside investment income. Properties here command higher entry prices but benefit from the strongest premium resale market on the island — buyers who purchase today are buying into a market that is building toward the density and liquidity of established Indian Ocean destinations like Mauritius.

The Nungwi resort complex — 240 apartments across two seven-storey buildings — represents the largest single addition to the north coast's investment property supply. Simultaneously, The Hills Nungwi offers a more intimate, villa-and-apartment format with an emphasis on premium finishes and resort-style living. Both projects operate within a market where 75 to 90 percent peak-season hotel occupancy is the established norm.

Key Developments

What is being
built in Nungwi

The Hills Nungwi
Luxury Villas and Apartments
The Hills Nungwi
Developer: Majestic Zanzibar Group  |  In front of Nungwi Dreams by Mantis

An exclusive collection of 20 modern apartments and 8 luxury villas on Zanzibar's most sought-after northern coastline. Every unit is designed to capture the natural elegance of island living — refined architecture, premium finishes, and unobstructed views over the turquoise Indian Ocean.

Located directly in front of Nungwi Dreams Hotel by Mantis — one of the north coast's highest-rated boutique beachfront resorts. The complex is managed by a professional resort operation company. Owners receive 60 percent of net rental revenue. Pre-completion funds are insured by an international carrier.

Total Units20 apartments + 8 villas
TypologiesStudio, 1-Bed, 2-Bed, Villa
Owner Revenue Share60% of net rental
AmenitiesGym, spa, pool, gardens
Resident PermitYes — from $100K
Insured Payments Resort Management Beachfront Location Permit Eligible
The Eyes of Zanzibar by MB Homes
Luxury Residential Development
The Eyes of Zanzibar
Developer: MB Homes  |  Nungwi, North Coast

A landmark residential development by MB Homes on Zanzibar's premium north coast. The Eyes of Zanzibar brings a distinctive architectural identity to the Nungwi market, combining high-quality residential units with the unmatched lifestyle credentials of the island's most established resort destination.

Positioned within Nungwi's established resort cluster — surrounded by RIU, Mantis, Royal Zanzibar Beach Resort, and Opera Hotel — the development benefits from the strongest rental demand and highest nightly rate benchmarks on the island's north coast.

DeveloperMB Homes
LocationNungwi, North Coast
Yield Range10–15% gross
MB Homes North Coast Resort Location
Nungwi Dreams by Mantis
Boutique Resort — Hospitality Benchmark
Nungwi Dreams by Mantis
Mantis Collection  |  Northern Tip of Nungwi

A boutique beachfront resort at the northern tip of Nungwi — widely rated as the highest-rated beach on Zanzibar island. Operated by the Mantis Collection, a globally recognised luxury hospitality brand, Nungwi Dreams sets the aspirational benchmark for short-term rental performance in this area.

As a direct neighbour to The Hills Nungwi, its consistent 5-star operational standards and repeat-guest occupancy provide an implied service context that directly enhances the nightly rates achievable by private property owners in the immediate vicinity.

OperatorMantis Collection
TypeBoutique Beachfront Resort
StatusOperational
Yield Benchmark Hospitality Market
The Hotel Market

Nungwi's established
resort ecosystem

The density and quality of established resort operators in Nungwi is one of the strongest arguments for investing here. Every major international hotel brand operating in Zanzibar has chosen the north coast. This institutional validation directly supports short-term rental rates and occupancy for private property owners.

Riu Jambo & Riu Palace
All-Inclusive — International Brand

Two RIU properties anchor the north coast's mass-market tourism segment, driving consistent year-round occupancy and establishing Nungwi as a known destination across European source markets.

Royal Zanzibar Beach Resort
Luxury All-Inclusive

Premium all-inclusive positioned for the higher-spend European market. Contributes to the north coast's reputation as Zanzibar's premium hospitality zone.

Nungwi Dreams by Mantis
Boutique Luxury — Mantis Collection

Globally-branded boutique resort at Nungwi's northern tip. Sets the aspirational service standard that benchmarks nightly rates for private property management in the immediate vicinity.

Opera Hotel Nungwi
Boutique Resort

Well-established boutique property in the core resort cluster. Strong repeat-guest base contributing to year-round demand for accommodation in the area.

Z Hotel Zanzibar
Designer Boutique

London-inspired design boutique hotel. Named one of the trendiest hotels in Africa by TripAdvisor. Draws a design-conscious international buyer demographic to the area.

Fisherman's Grill, Sexy Fish, Essence
Restaurant and Lifestyle Infrastructure

Premium dining venues within walking distance of The Hills Nungwi. The depth of the local hospitality ecosystem reduces friction for property owners managing short-term rentals.

Why Invest in Nungwi

The investment
case for Nungwi

What drives demand here

Nungwi's calmer waters — protected from the south-east trade winds that characterise the east coast — make it the preferred destination for families, divers, and the international beach holiday market. This broader demographic appeal creates a wider and more consistent occupancy base than the kite-sport-dependent east coast.

The area's proximity to the turtle sanctuary, dhow boatyards, and Kendwa's full moon events provides multiple demand drivers within a short radius. Buyers who purchase in Nungwi are buying into the most diversified and institutionally validated tourism micro-market on the island.

Price appreciation has been strongest here — 10 to 15 percent annually in prime beachfront locations — reflecting the combination of demand growth and constrained beachfront supply. The price-index move from 100 in 2019 to approximately 176 in the Paje and Nungwi corridor by 2024 represents one of the strongest compound returns in the East African real estate market.

What buyers need to know

  • Entry prices are higher than any other area on the island — the premium reflects genuine demand and institutional validation, not speculative pricing
  • The Hills Nungwi offers the most intimate and premium product in the current Nungwi pipeline — 28 units total versus 240 in the residential complex
  • Both The Hills and the The Eyes of Zanzibar operate under professional rental programmes — passive income structure for non-resident buyers
  • Nungwi Domestic Airport is 10 minutes from the resort cluster, providing an additional connectivity advantage for short-break visitors
  • The premium resale market in Nungwi is the most liquid on the island — exit risk is lower here than in emerging areas
  • Peak-season nightly rates in Nungwi typically spike 40 to 60 percent above shoulder season — a pattern that dramatically strengthens annual yield calculations for well-managed properties
Talk to Augustine

Interested in
Nungwi property?

I have direct relationships with The Hills Nungwi team and can provide current pricing, availability, and payment plan information. Book a free call and I will walk you through which Nungwi product best fits your investment goals and budget.

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