You can look at this geometrically as well. If O is the origin, A represents z, and B represents z+1, and C represents 1, then because z has unit modulus (implied by z = cistheta), and because then AB has length 1 (try tail-to-tip addition or whatever) then OAB is isosceles. Another way of seeing this would be, by the rules of vector addition, OABC is a parallelogram, and because OA = 1 = OC then OABC is a rhombus.
It then follows that angle COB = half angle COA = theta/2, and also you can then use the cosine or sine rule (whatever suits you best) to get that OB = 2cos theta/2. Combining those together you know that the argument of z+1 is theta/2, and the modulus has to be 2cos theta/2, so you get z+1 = 2costheta/2 cistheta/2.
A lot of random complex numbers questions like this can be done geometrically, or at least motivated geometrically. A golden rule I reckon of compex numbers is just DRAW A DIAGRAM; even if youre not gonna use geometry, having a picture in front of you will almost always help.