Zimbabwe experiences an upsurge in real estate market activity

Despite economic headwinds, Zimbabwe’s real estate market has demonstrated notable resilience and momentum from 2022 through to 2023. The sector has seen increased activity across all sub-sectors, fueled by long-standing demand, economic adaptation, and new investment vehicles such as REITs.

A Market Reawakening After Years of Stagnation

After decades of limited growth, Zimbabwe’s property market is undergoing a revival. This renewed activity is driven by several key factors:

• Increased urbanization and population growth have reignited demand for housing.
• Real estate remains a preferred inflation hedge, prompting both institutional and private investors to seek refuge in property.
• Limited formal housing supply has spurred self-builds and developer-led construction in urban and peri-urban areas.

For many Zimbabweans, owning a home remains the ultimate dream a symbol of security, status, and financial independence.

Shifts in the Rental and Occupier Market

The rental sector has experienced its own transformation:

• There’s growing demand for suburban office space, especially from businesses seeking cost-effective alternatives to CBD locations.
• Industrial property demand is on the rise, particularly for warehousing, logistics, and light manufacturing.
• Tenants now have greater capacity to pay market rents, indicating gradual improvements in disposable incomes and business confidence.

Construction Boom: Residential, Commercial, and Industrial

Across the country, construction projects are booming, with a mix of private and institutional developments. Key trends include:

• Affordable housing developments to meet the needs of first-time buyers and low-to-middle income households.
• Commercial renewals and expansions, including modern office parks and mixed-use shopping centers.
• Industrial developments, particularly in logistics and storage, are growing in response to regional trade dynamics and e-commerce growth.

The Role of REITs in Unlocking New Investment

A major turning point has been the introduction of Real Estate Investment Trusts (REITs), which are drawing fresh capital into the property sector. These investment vehicles:

• Allow small investors to access large-scale real estate opportunities.
• Improve transparency, governance, and professionalism in property investment.
• Encourage the formalization of property portfolios, especially for pension funds and institutional players.

The listing of Tigere REIT and growing interest from other issuers marks a shift in how real estate is financed in Zimbabwe creating a more liquid and structured market environment.

Outlook: Resilience Amid Economic Challenges

While economic uncertainty remains, real estate continues to outperform many other sectors in terms of stability and long-term returns. Investors are increasingly prioritizing:

• Income-generating assets such as rental apartments and commercial buildings.
• Regeneration hotspots in Harare and other urban centers.
• Tourism-linked developments, particularly in areas like Victoria Falls, Nyanga, and Kariba.

Conclusion

Zimbabwe’s property market is navigating adversity with a blend of innovation, investor interest, and grassroots demand. Whether you're a first-time buyer, developer, or institutional investor, this is a market ripe with opportunity, diversification, and long-term value.