Luxury beach villa in Zanzibar for less than $200,000 – international property of the week


Selina Denman
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If working from home in a breezy tropical island locale appeals, Zanzibar may have something for you.

A new tax and residency scheme is opening the East African island up to foreign investors. A number of measures have been introduced to facilitate foreigners wanting to live and own property in Zanzibar. The destination had previously struggled to attract any significant real estate development, as there were no incentives and allowances for people wanting to invest.

New rules are making it easier for foreigners to acquire property in Zanzibar. Courtesy Camilla Frederiksen
New rules are making it easier for foreigners to acquire property in Zanzibar. Courtesy Camilla Frederiksen

Now, property owners are eligible to receive a residency permit and live in Zanzibar as non-citizens. At the same time, they are not required to live on the island permanently, and do not have to pay tax on worldwide income and wealth.

Meanwhile, income tax on local earnings has been halved to 15 per cent for foreigners. Villa buyers will receive residency permits for their partner and a maximum of four children under the age of 20. New incentives have also been introduced for business investors.

Those looking to take advantage of Zanzibar’s new investment rules should check out Blue Amber, a luxury mixed-use waterfront development currently taking shape in the north-east of the island.

The key details

Blue Amber is set on four kilometres of prime Indian Ocean beachfront. Courtesy Blue Amber
Blue Amber is set on four kilometres of prime Indian Ocean beachfront. Courtesy Blue Amber

Set on more than 404 hectares of tropical landscape and four kilometres of prime Indian Ocean beachfront along the Muyuni coast, Blue Amber is the largest resort development of it kind in Africa. Construction of the first phase of the community commenced in 2020 and is scheduled for launch later this year. It will be home to luxury residences, leading global hotel brands and a signature golf course.

The first-phase of development consists of 54 pool villas, a leisure centre featuring shops and a watersports centre, a boutique hotel and a beach restaurant. Residents will be able to enjoy views of the pristine Muyuni Beach and Mnemba Island, and can choose from a range of villa types. Residents can also opt for fully integrated property management service.

What’s the story?

A three-bedroom, double-storey pool villa. Residences have a contemporary, airy design, with stone-work facades and whitewashed walls. Courtesy Blue Amber
A three-bedroom, double-storey pool villa. Residences have a contemporary, airy design, with stone-work facades and whitewashed walls. Courtesy Blue Amber

Housing options include two-bedroom pool villas, with prices starting at $197,125. Set on a plot of 450 square metres, with an inside living area of 199 square metres, these single-level villas come with six metre by three metre private pools and a roof terrace.

There are also double-storey two-bedroom pool villas, starting from $201,000, with a living area of 157 square metres, and three-bedroom villas priced at $319,000, with a living area of 168 square metres.

All properties are fully air-conditioned, with internet connectivity. Designs are open, airy and contemporary, with stone-work facades, whitewashed walls and floor-to-ceiling glass windows. Kitchens come fitted with worktops, cupboards and an oven and cooker.

Residents can also request a locally handcarved Zanzibarian front door, ceiling fans, and move-in packages that include linen, crockery, cutlery, curtains and light fittings.

After an initial $5,000 deposit, properties can be paid for in instalments, with an initial 10 per cent instalment, followed by 40 per cent, 30 per cent and, finally, 20 per cent upon completion.

What the brokers say

"Blue Amber is Africa’s leading leisure destination and Zanzibar’s premier island resort. It is recognised as a strategic investment project in Tanzania," says the Blue Amber website. "Blue Amber’s real estate portfolio offers a select few a stable of property opportunities in which to invest."

SPECS
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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

The biog

Title: General Practitioner with a speciality in cardiology

Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India

Education: Medical degree from the Government Medical College in Nagpur

How it all began: opened his first clinic in Ajman in 1993

Family: a 90-year-old mother, wife and two daughters

Remembers a time when medicines from India were purchased per kilo

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Scores in brief:

Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

HAJJAN
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In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Opening Rugby Championship fixtures:Games can be watched on OSN Sports
Saturday: Australia v New Zealand, Sydney, 1pm (UAE)
Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)

Teams in the EHL

White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers

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Updated: July 12, 2021, 6:29 AM