ONE, TWO, THREE – SOLD!

Zanzibar: new holiday apartments in the midst of Paje in spectacular sale

By Andrea Tapper

Surf hotspot Paje is getting a brand-new picturesque centre with residences, boutiques and cafés. Everything about the urban-yet-beachy Zanzibar development called Paje Square seems unique: the look, the scope and a completely new sales process.

What is advertised as the “new heartbeat” of Paje was bookable in a spectacular online launch event – with over 50 holiday apartments of 81 available sold on the very first day of the launch on 14 May. “It was beyond our expectations”, said Tobias Dietzold, director of CPS, the developer of the new project. One day before, excitement had already been at a peak: “Only 22hrs to go”, said a digital stopwatch on the website pajesquare.com. Just an hour away from the launch came a reminder: “Keep your credit card ready for the reservation fee of $500.” I had listed myself as a journalist to follow the staged dramaturgy and found myself watching in awe, as my four favourite properties – among them a poolside studio for only $64,000 – were shortlisted by up to 37 others each! Who would capture the prey, when for the first time ever in Zanzibar, holiday apartments were up for grabs in a controlled digital race? “Whoever hits the online reserve button first”, Brad Morgan and Dean Lederle explained to me, the founders of start-up Launchbase in South Africa who orchestrated the spectacular sale in Zanzibar. All studios of the first batch – the least pricey units – were sold on the very first day.

From fishing village to street scene

Big changes are happening in Paje – and the online property launch of Paje Square is one of them. The planned urban ensemble consists of seven four-storey blocks with 203 apartments and about 50 shops. The former fishing village Paje has become the fastest-growing beach town in Zanzibar and ranks among the most popular tourism destinations in entire East Africa. The kite-surfers’ darling on the East Coast is the only place on the island where a unique, Bali-like street scene has emerged. “This increases the demand for short-term and long-term rentals”, urban planners said. And took action.

The new heart of Paje will be located between the main road and leisure residences The Soul. Project owner is a Dutch travel veteran and his company Zanzibar Villas. Developer is CPS, Zanzibar’s largest real estate firm with a German background.  Their well-known flagship is Fumba Town near the capital.

A green enterprise, Paje Square, will be constructed with engineered timber and qualify as a UN-certified sustainable development. Construction is supposed to start this year and to be completed by 2027/2028, said Sebastian Dietzold, CEO of developer CPS. The unexpected quick sale on the launch day “enables us to start building quicker than planned”, the CPS directors said.

In 2005, there was little more in  Paje than palm trees and cows. In 2016, the village and a main road formed. In 2019, “we were the first to venture inland with The Soul residential leisure resort”, Dietzold recalled. With Paje Square, “we are aiming to combine hospitality and urban growth”, he elaborated.

Who will invest and live in Paje Square?

The first buyers were local and international investors coming from Zanzibar, Tanzania, Kenya, South Africa, UK and Germany, the developer disclosed. Foreigners investing above $100,000 qualify for a resident permit. Potential buyers range from island entrepreneurs to global nomads, from singles to families. 7% returns and above on rental yields are expected.

With two pools, out-door dining and solar options, the innovative property is likely to change the face of Paje. “We are looking forward to getting a centre and more structure in our ever-expanding village”, some Paje shop owners commented: “We’d also be happy about more formal  commercial space.”

The spectacular online launch of the new enterprise was more than a gimmick. “Everybody has the same chance”, explained Brad Morgan, 44, who developed the new software for property launches with his business partner Dean Lederle, 37, in South Africa. It enables off-plan property to be reserved online in real time. Launchbase has become a major disruptor in a fiercely competitive industry. Their formula has proven hugely successful, selling over 1,500 apartments, totalling $250 millions, in Cape Town last year.

$100,000 for a slice of Paradise

Paje Square with a central piazza (photo) consists of seven four-storey apartment blocks with carved balconies, making it a total of 203 apartments and about 50 shops in ground floor arcades. Units are sold off-plan fully furnished and equipped with African-made quality interior, a light mix of beach style and urban thinking. Rental management is included. Apartment prices start from $100,000 for a one-bedroom; more studios will come on sale soon. First apartments will be ready in 2027.

Information: www.pajesquare.com