East African Coast
Back to Research
Market Analysis

Why East African Coastal Properties Outperform

January 8, 2026
12 min read
7-10%
Average Rental Yield
15%
Annual Tourism Growth
$2.1B
Diaspora Remittances

The East African coast—spanning Kenya, Tanzania, and Zanzibar—represents one of the most compelling real estate opportunities in emerging markets. Here's why we're bullish on Swahili coast properties for tokenization.

The Investment Thesis

While most crypto projects chase speculative narratives, we're focused on fundamentals. East African coastal real estate offers something rare: high yields backed by structural demand drivers.

1. Tourism Renaissance

Kenya's coastal tourism is experiencing explosive growth. Watamu, Diani, and Malindi are attracting a new wave of international visitors—not just traditional safari tourists, but digital nomads, remote workers, and wellness seekers.

The numbers tell the story:

  • International arrivals to Kenya up 28% year-over-year
  • Coastal hotel occupancy rates exceeding 75% in peak season
  • Airbnb and short-term rental demand outpacing supply 3:1

2. Diaspora Investment

The Kenyan diaspora sends over $4 billion annually in remittances—and a significant portion flows into real estate. Coastal properties are particularly attractive for diaspora investors seeking:

  • Vacation homes for family visits
  • Rental income in USD-equivalent rates
  • Long-term appreciation in a growth market
  • Retirement planning assets

Royalty Tokens make it possible for diaspora investors to participate in this market without the complexity of cross-border property management.

3. Watamu: Our First Market

We're launching with Watamu for specific reasons:

Why Watamu?

  • Marine National Park: Protected beaches, crystal waters, world-class snorkeling
  • Growing Infrastructure: New road connections, improved utilities, fiber internet
  • Italian Community: Established expat community drives consistent demand
  • Undervalued: Prices 40-60% below comparable Zanzibar properties

4. The Yield Advantage

Let's talk numbers. Comparable markets tell the story:

MarketAvg. Rental YieldEntry Price
London2-3%$$$$$
Dubai6-8%$$$$
Bali5-7%$$$
Watamu, Kenya7-10%$$

Higher yields at lower entry prices, with growth potential as infrastructure improves and tourism expands. This is the emerging market opportunity.

The Tokenization Advantage

Traditional investment in East African real estate comes with challenges:

  • Complex land title systems
  • Cross-border legal complexity
  • Property management from abroad
  • Currency conversion and repatriation

Royalty Tokens eliminate these barriers. You get exposure to the yield and appreciation without the operational complexity. We handle the property, you collect the dividends.

Ready to invest in East African real estate?

Explore $BAHARI Token