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Stone Town
UNESCO Heritage Zanzibar

The historic and cultural heart of Zanzibar. A UNESCO World Heritage Site where conservation restrictions permanently limit new supply — and where new institutional-scale developments are redefining the edges of the historic zone.

6–10% Gross Rental Yield
$60K Entry Price
7% Est. Annual Appreciation
$250M Infinity Hills Investment
Paje Nungwi Fumba Stone Town All Areas →

Stone Town is the symbolic, cultural, and economic heart of Zanzibar. Its labyrinthine alleys, coral-rag architecture, carved wooden doors, and centuries of Swahili, Arab, Indian, and European influence have earned it UNESCO World Heritage Site status — and the protection and supply constraint that comes with it. This is the only area on the island where new supply is permanently limited by an international body, not just by geography.

For investors, Stone Town presents a different proposition from the resort areas. Yields are lower than Paje or Nungwi, but the supply-demand dynamic is fundamentally different. You cannot build a new coral-rag townhouse in the UNESCO core. You cannot create new heritage. What exists is all there will ever be. This creates a long-term scarcity premium that no other area on the island can match.

The immediate area around Stone Town — particularly Chukwani on the western coast and Kikwajuni to the north — is now seeing large-scale new development that sits outside the heritage conservation zone while benefiting from proximity to the historic centre. The $250 million Infinity Hills development in Kikwajuni, launched in February 2026, represents one of the largest single private real estate investments in Zanzibar's history.

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UNESCO World Heritage Site — Since 2000

Stone Town has held UNESCO World Heritage Site status since 2000, recognising its outstanding universal value as a trading hub where African, Arab, Indian, and European cultures merged over centuries. Conservation restrictions within the heritage core permanently limit new development, creating a naturally supply-constrained property market. Heritage properties within the UNESCO zone represent some of the most defensible assets on the island.

Key Developments

What is being built
near Stone Town

Infinity Hills Stone Town Zanzibar
$250 Million Flagship — Largest Gated Residential Community in Zanzibar
Infinity Hills
Developer: Infinity Developments  |  Kikwajuni, Stone Town  |  Launched: February 2026

Zanzibar's largest gated residential community and one of the most significant private real estate investments ever announced on the island. Located in Kikwajuni — just minutes from Stone Town's historic district — Infinity Hills combines 1,112 apartments with retail, office, and lifestyle infrastructure in a single master-planned community.

Backed by Infinity Developments, whose total portfolio across Zanzibar exceeds $600 million in Gross Development Value and includes the ultra-luxury Anantara Zanzibar Resort and the BURJ Zanzibar. All regulatory approvals are now secured and construction is beginning under a phased plan.

Residents benefit from proximity to GEMS Zanzibar International School, major healthcare facilities, and the upcoming Infinity Hills Mall. The project sits adjacent to one of the island's largest public parks and within walking distance of the coast — providing a rare combination of urban connectivity and natural environment.

All Approvals Secured Foreign Ownership Managed Rental Near Stone Town GEMS School Adjacent
Total Investment$250 million
Total Units1,112 apartments
TypologiesStudio, 1-bed, 2-bed
LocationKikwajuni, Stone Town
Developer GDV$600M+ portfolio
CommercialInfinity Hills Mall included
StatusLaunched Feb 2026 — phased construction
Chukwani Shores PADDCO
Luxury Beachfront Development
Chukwani Shores
Developer: PADDCO Construction  |  Chukwani, Western Zanzibar

An exclusive beachfront residential development situated in Chukwani along the stunning western coastline of Zanzibar — just minutes from the airport and Stone Town. The development consists of 115 to 120 residential units across apartments, penthouses, luxury villas, and super luxury villas.

PADDCO is led by Max Maxwell, a developer with a strong track record in the Dubai real estate market. Each unit features contemporary layouts, spacious interiors, private outdoor spaces, large panoramic windows, and ocean views. Private infinity swimming pools and the western coast's legendary sunset panoramas are among the standout lifestyle features.

ZIPA-registered with full foreign ownership eligibility. Projected yields of 12 to 15 percent through short-term holiday rentals. Payment structure: 10 percent down, 80 percent in eight quarterly instalments during construction, 10 percent on completion.

Units115–120 units
TypologiesApartments, Penthouses, Villas
Projected Yield12–15% (to 23%)
Lease99 years
ZIPA Registered Resident Permit Dubai Developer Pedigree Beachfront
Stone Town Zanzibar
Government Housing — ZHC
Zanzibar Housing Corporation
Developer: Government of Zanzibar  |  Various Locations

The Zanzibar Housing Corporation (ZHC) represents the government's programme to develop residential housing across the island, including in and around Stone Town. ZHC developments provide an accessible entry point to the Zanzibar property market with government-backed land tenure and clear legal frameworks.

ZHC housing projects in and around Stone Town address the residential needs of Zanzibar's growing urban population. As the government scales its housing programme across Zanzibar as part of Vision 2050 targets, ZHC developments near Stone Town benefit from proximity to the island's administrative, commercial, and cultural hub.

DeveloperGovernment of Zanzibar
FocusAccessible market entry
Land TenureGovernment-backed
Government Backed Clear Title Accessible Entry
Heritage Zone Context

The three layers of
Stone Town investment

01

Heritage Core — UNESCO Zone Properties

Restored coral-rag townhouses and apartments within the UNESCO World Heritage Zone. Prices from $60,000 for apartments to several million for fully restored villa-scale properties. Yields of 6 to 10 percent gross from the luxury short-let market. Supply is permanently constrained — nothing new can be built here without UNESCO conservation authority approval. These properties represent the most defensible assets on the island on a 10 to 20-year horizon.

02

Adjacent Western Coast — Chukwani and Surrounding Areas

New-build development on the western coastline south of Stone Town, including Chukwani Shores by PADDCO. These developments offer the combination of Stone Town proximity and accessibility — 5 to 10 minutes from the airport and the city centre — with modern, purpose-built residential quality. The Indian Ocean sunset views from the western coast are unique on the island. This segment offers the most attractive entry prices per square metre for ocean-facing property close to Zanzibar's commercial and administrative hub.

03

Northern Kikwajuni — Large-Scale Urban Development

The Kikwajuni area north of Stone Town is now the site of the island's largest residential investment, anchored by Infinity Hills at $250 million and 1,112 units. This zone is transforming from a transitional suburban area into a structured urban neighbourhood with retail, schools, healthcare, and public green space. Buyers here are purchasing into an early-stage urban development story rather than an established market. Proximity to GEMS International School and major healthcare infrastructure gives this area genuine residential utility beyond pure investment positioning.

Why Invest near Stone Town

The investment
case for this zone

The scarcity argument

Stone Town is the only area in Zanzibar where supply is permanently limited by an international body. UNESCO conservation rules mean you cannot build new heritage. The coral-rag townhouses, the carved wooden doors, the mashamba courts — they are finite. As tourism continues to grow and the luxury short-let market matures, the gap between the number of high-paying visitors wanting to stay in authentic historic properties and the number of such properties will only widen.

The luxury short-let market in Stone Town is growing faster than supply can accommodate it. Properties with authentic heritage character, modern facilities, and professional management are achieving occupancy rates and nightly rates that generate yields in the 8 to 12 percent range — modest by Paje standards but backed by a structural supply constraint that no other area on the island can claim.

What buyers need to know

  • The UNESCO core requires conservation authority approval for any renovation or development — this adds time and cost to project timelines that buyers should factor in from the outset
  • Infinity Hills at $250 million represents a fundamentally new scale of investment for the Kikwajuni area — early phases typically offer the most attractive pricing
  • Chukwani Shores by PADDCO provides the best combination of modern amenity and Stone Town proximity currently on the market in this zone
  • PADDCO's Dubai development background brings a level of project management professionalism and international investor experience that is relatively rare in the Zanzibar market
  • Properties near Stone Town benefit from the highest density of cultural tourism on the island — the kind of visitor profile that supports year-round demand rather than purely seasonal spikes
  • The Zanzibar International Airport is 5 to 10 minutes from Chukwani and Kikwajuni — the shortest airport-to-residence time of any investment zone on the island
Talk to Augustine

Interested in
Stone Town area property?

Whether you are looking at a heritage restoration opportunity in the UNESCO core, a beachfront villa at Chukwani Shores, or an early-phase apartment at Infinity Hills — I can help you navigate the options with honest, data-backed guidance. Book a free call to start the conversation.

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