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The property market in Zimbabwe presents a wealth of investment opportunities in 2024, driven by a combination of economic factors, urbanisation, and changing consumer preferences. For investors looking to diversify their portfolios or capitalise on emerging trends, the real estate sector offers promising prospects. Here's a closer look at the key opportunities and the data supporting them.
1. Growth in Urban Housing Demand
Zimbabwe’s urban population continues to grow, with cities like Harare and Bulawayo seeing significant increases in demand for residential properties. According to the Zimbabwe National Statistics Agency (ZIMSTAT), the urban population is projected to grow by 3.5% in 2024, fueled by rural-to-urban migration and natural population growth. This trend creates a strong demand for housing, particularly in mid to high-density areas where affordable housing projects are thriving.
2. Commercial Property Development
The commercial property sector is also experiencing growth, particularly in the retail and office space markets. In Harare, the occupancy rate for prime office spaces has increased by 12% over the past year, indicating a rebound in business activities post-pandemic. Retail spaces in shopping centres like Westgate and Sam Levy's Village are seeing increased foot traffic, making them attractive investments for retail property developers and investors.
3. Industrial Real Estate
Industrial real estate is another sector with significant potential. With Zimbabwe’s focus on reviving its manufacturing sector, there is a growing need for warehouses, factories, and logistics centres. The government's economic blueprint, the National Development Strategy 1 (NDS1), aims to boost industrial output by 8% annually. This goal, coupled with incentives for manufacturing companies, is driving demand for industrial properties, particularly in hubs like Msasa and Southerton in Harare.
4. Tourism and Hospitality Investments
Zimbabwe’s tourism sector is gradually recovering, and with it comes an opportunity to invest in hospitality real estate. Areas like Victoria Falls and the Eastern Highlands are seeing renewed interest from investors looking to capitalise on the expected influx of tourists. According to the Zimbabwe Tourism Authority (ZTA), tourist arrivals are expected to rise by 15% in 2024, creating demand for hotels, lodges, and vacation properties.
5. Land as a Long-Term Investment
Investing in land remains one of the most secure and profitable options in Zimbabwe's property market. The value of land, particularly in peri-urban areas, has been appreciating steadily. For instance, land prices in areas surrounding Harare, such as Ruwa and Norton, have increased by an average of 10% annually over the past five years. As urban expansion continues, these areas are likely to see further appreciation, making land a solid long-term investment.
6. Affordable Housing Projects
Affordable housing is a critical area of need in Zimbabwe, with a housing deficit estimated at 1.5 million units. The government's efforts to address this through public-private partnerships (PPPs) have opened up opportunities for investors in the low-cost housing sector. Projects like the ongoing New City development in Mt Hampden are examples of the potential in this sector, with expected returns driven by strong demand from the growing urban workforce.
7. Risks and Considerations
While the opportunities are abundant, investors should also consider the risks associated with Zimbabwe's property market, such as currency fluctuations and regulatory changes. However, with careful planning and a focus on sectors with strong demand, these risks can be managed.
Zimbabwe’s property market in 2024 offers a diverse range of investment opportunities, from residential and commercial developments to industrial and tourism properties. Backed by strong demand, government incentives, and a recovering economy, the real estate sector is poised for growth. For investors, now is an opportune time to explore and capitalise on these opportunities, whether through direct property purchases, development projects, or land investments.
At Property.co.zw, we are committed to helping you navigate this promising market with confidence. Let us guide you toward making informed, profitable investment decisions in Zimbabwe’s property market.
