Shock waves hit Zanzibar's nascent real estate industry
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Loading... - Anthony Waziri
- 19 Sep 2022
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The revocation of British developer Pennyroyal’s leasehold for the construction of Blue Amber Resort by the Revolutionary Government of Zanzibar has sent shock waves in the nascent property market on the Isles.
Audited reports presented to authorities show that the developer had so far injected $55 million (Sh126.5 billion), with the total value of the project estimated at $1.6 billion (Sh3.6 trillion). The property sits on 411 hectares in Matemwe, northeast of Zanzibar.
The recent developments have left property buyers, prospective developers and site workers pondering their next move, with many wondering why the lease was terminated with a court order in place.
The affected have various reasons to be frustrated and disappointed, just as varied are their nationalities that are spread across the world from Brazil, Poland, Germany, USA, Japan and Tanzania among others.
These were former tourists and diplomats who visited the Island and fell in love with it, and when the opportunity fell in place for them to live in the tranquility of Zanzibar, it was something they couldn’t afford to miss.
To most, the investment they had made in properties at Blue Amber was the last drop of their savings as they head towards retirement.
The villas at Blue Amber’s first phase cost between $240,000 (Sh553 million) and $600,000 (Sh1.38billion) depending on the size and some had paid up to 80 percent of the costs with delivery expected to be in December, but that was until the authorities abruptly pulled the plug.
Ground breaking for the boundary walls of the site was done in 2014, whereas that of the Hotel, Dive center, Beach Club, shops started construction in 2018.
The villa sales and construction kicked off in August 2021, after a delay that developers attributed to the outbreak of the Covid-19 pandemic and certain regulations in Zanzibar that were changed in 2021 to give investors residency on purchase.
Prospective property owners speak
The buyers, whose identities are protected, who spoke to The Citizen at separate times expressed dismay, with some calling on the Revolutionary Government of Zanzibar to intervene in their plight.
Anne*, a US citizen says the announcement had left her in utter shock and disbelief that the Ministry of Land would come to such a conclusion even with the full knowledge that many people had invested large sums of money with the blessings of the Zanzibar Investment Promotion Authority. Read More…
