Real Estate Investor Magazine South Africa REIM February 2018 | Page 54

AFRICA
Zanzibar calling
South Africans now eligible
to buy property in idyllic islands
BY MONIQUE DU TOIT
S
outh Africans seeking to invest in property north of the
Limpopo can now do so in the idyllic Tanzanian archi-
pelago of Zanzibar. The East African nation is, for the
first time in history, allowing non-Tanzanian residents to
invest in property on the tropical island. This, coupled with
strong economic growth, is expected to boost the property
market.
According to a 2017 Africa Report by Knight Frank, Tan-
zania is one of a small group of African nations to have main-
tained GDP growth in excess of 5% in 2016, as it is an import-
er of commodities, and so benefitted from low oil prices as well
as growth in private consumption and investment.
Global Property Guide reports that Tanzania is experienc-
ing large scale investment and development in real estate proj-
ects for residential, industrial and commercial purposes.
For investors, property in luxury surroundings is likely to
deliver returns in line with or in excess of that in Tanzania’s
capital city of Dar es Salaam. Data shows that four bedroom
executive houses in prime locations within the capital garnered
prime rental prices of US $4 500 per month and prime yields
of 6%.
An investment also offers significant tax benefits for prop-
erty owners, including a tax rate of 15% earned on local in-
come and no tax on worldwide income. This is realized by the
development’s status as a strategic investment project. Proper-
ty owners will also benefit from not having to pay capital gains
tax, stamp duty or inheritance tax on properties purchased.
In addition, property owners - along with spouses and
children under 25 years of age - are also eligible for residence
permits in Zanzibar, with residency status valid for as long as
investors remain property owners.
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FEBRUARY 2018 SA Real Estate Investor Magazine
CASE STUDY: BLUE AMBER ZANZIBAR
Blue Amber Zanzibar by Pennyroyal Ltd, is set to
be the largest resort in Africa. Initially launched as
Zanzibar Amber Resort in early 2017, the mixed
use development spans 411 hectares of Indian
Ocean coastline offering access to the Ritz Carlton
and Anantara Hotels, luxury residential villas and
East Africa’s first signature 18-hole golf course,
designed by professional golfer and former world
number one Ernie Els.
Blue Amber Zanzibar will also offer both Tanzanian
and non-Tanzanian residents an opportunity to
invest in premium residential property in Zanzibar.
The first residential phase, comprising 47 luxury
villas set in a secure private estate with sweeping
views of the ocean, lakes or golf course, is under
construction and is expected to be complete by
2020.
Non-Tanzanian residents will be eligible to buy
property within the luxury community on 99-year
leases with the option to extend ownership by 49
years, says Saleh Said, managing director of the
Blue Amber Zanzibar. Prices for villas in phase one
of the Blue Amber Zanzibar start at US $672 000.