Paje Square launch marks new era for Zanzibar real estate

Paje. A new chapter in Zanzibar’s coastal development has officially begun with the launch of Paje Square, a transformative real estate project that promises to reshape the island’s southeast region both economically and socially.

The event, held in the heart of Paje, brought together local realtors, tourism stakeholders, potential buyers and supporters of the real estate developer who have bought into their flagship project – Fumba Town that is on the South West coast of the island.

The evening was a glimpse into ambitious development, including a tour of its show apartments, which will form part of the region’s first timber-engineered residential buildings.

Modern timber innovation meets local vision Developed by CPS, a real estate company with a growing footprint in Zanzibar, the Paje Square project launch featured the first three of the seven apartment blocks comprising 81 fully furnished units, built using engineered timber — making it a new addition to the developers portfolio of sustainable projects in Tanzania, and in East Africa.

Speaking during the launch, CPS CEO Sebastian Dietzold said the project was set to dramatically alter the landscape and feel of Paje over the next three years.

“With over 50 units sold in the first two days, this marks a major evolution of Paje’s journey in the past 20 years,” said Mr Dietzold. “This isn’t just real estate, it’s about changing how people live, work, and connect in Zanzibar.”

He also praised the Zanzibar government for its continued investment in infrastructure, including the upgrade of the Paje Road into a dual carriageway, a move expected to improve access and attract further investment into the region.

CPS is currently sourcing timber from South Africa and Tanzania’s Iringa region but is preparing to localise production by opening a timber processing facility — Super Timber 2000 — in Dunga, Zanzibar. The move is expected to drive sustainable construction and job creation.

A hub for living, business, and culture

At its core, Paje Square is a mixed-use development featuring retail outlets, cafes, office spaces,  wellness centre, and co-working facilities. A central open-air plaza will serve as a gathering point for events ranging from local art showcases and farmers’ markets to cultural performances and food festivals.

“This is not just about buildings. It’s placemaking,” said Mr Dietzold. “We are creating a space where community life and tourism can grow together — a place that feels authentic yet modern.”

Already, Paje Square is influencing Zanzibar’s real estate market. Once known mainly for kite-surfing and backpackers, Paje is now seeing increased interest from both domestic and international property investors.

Analysts suggest this could usher in a shift towards structured growth, complete with improved infrastructure and lifestyle amenities.

Empowering local communities

One of the cornerstones of Paje Square is inclusive development. Mr Dietzold revealed that the project has already trained and employed 160 local staff in timber construction, helping to build both the site and a skilled local workforce.

The developer has also pledged to collaborate with local schools and NGOs to run digital training, creative workshops, and entrepreneurship programmes from the site’s co-working space.

“This is about lifting the community with us,” said one of the project’s community officers. “We’re not replacing the culture — we’re enhancing it with opportunity.”

Rethinking tourism

With Zanzibar’s tourism sector booming, concerns around unchecked development and environmental degradation have grown louder. Paje Square aims to offer a model for responsible tourism — one that blends global hospitality standards with sustainability.

The site incorporates solar panels, water recycling systems, and prioritises local materials to reduce its carbon footprint. Importantly, public beach access will be maintained, and conservation initiatives supported through stakeholder partnerships.

A glimpse of the future

As Zanzibar accelerates towards its Vision 2050 development agenda, projects like Paje Square highlight the island’s evolving identity: one that merges innovation with tradition, economic growth with community empowerment. “We’re not just developing property — we’re developing potential,” said Mr Dietzold.

The official launch ceremony, attended by local dignitaries, investors, and real estate professionals, marks what many see as the beginning of a new era for Zanzibar’s southeast coast— one where design, purpose, and people come together to redefine what sustainable coastal living can look like.