Property Development in Zimbabwe: Reflections of an Optimist

The property sector in Zimbabwe is evolving, with exciting new developments such as Madokero Mall taking shape across the country. Despite the uncertain political and economic environment, there is reason to be optimistic about the future of the property sector in Zimbabwe.

There are a number of factors that are driving growth in the property sector, including the introduction of Real Estate Investment Trusts (REITs), the development of new shopping centres, and the relaxation of building by-laws by local authorities. In addition, the stabilising economy and the increasing diaspora remittances are providing a boost to the market.

With strong fundamentals in place, the property sector in Zimbabwe is poised for growth in the years ahead. So, if you are considering investing in property, now may be the time to do so.

An Overview

Property development in Zimbabwe is a vast and diverse sector, spanning residential, industrial, commercial and agricultural markets. It is a highly regulated industry albeit in need of much revitalisation and modernisation, regulations wise. The sector is primarily driven by domestic demand, commercial players represented by the likes of Simbisa Brands continue to expand across the country. It is not an impossible feat to imagine international investors are increasingly taking an interest in the Zimbabwean property market.

The emerging class of resilient Zimbabweans domestic and abroad who are looking to purchase property, either for investment or for residential purposes, is driving the demand for new buildings and renovations. In terms of physical development, the ongoing construction of new shopping centres by Terrace Africa and office parks by First Mutual Properties to mention a few development examples is part of the ongoing process of transforming the country’s cities and towns into modern centres of commerce and finance. New housing projects are also being developed, by Troika Design Works and Turnbury Property Developers for example, with an emphasis on both accessibility and quality.

The Current Situation

The political and economic situation in Zimbabwe is far from perfect, with many challenges yet to be overcome. However, despite the challenges, there are some positive developments in the property sector, which are giving rise to an atmosphere of optimism. The relaxation and modernisation of building by-laws by local authorities is making it easier for developers to secure the necessary development permissions and concepts to undertake property development projects.

There have also been some significant signals of intent made by international investors in the property sector an example being the Mount Hampden Cyber City collaborative pledge by the Mulk International Group. Some exciting new developments are taking place in the residential market as well, with developers creating communities of new homes with amenities such as swimming pools and gyms, you should check out Qoki in this regard. All this is helping to reinvigorate the market and to attract investors, both domestic and foreign.

The future of property development in Zimbabwe

The future of property development in Zimbabwe looks promising. There is increasing demand for quality housing and a burgeoning middle class (diaspora included), both of which are driving demand for property. In addition to the continued growth of the residential property market, the commercial and industrial sectors are also expanding. Logistics infrastructure is also coming into the fray as supply lags behind demand driven by the growth in the FMCG categories, First Mutual made moves to take advantage of the gap and built then leased out warehousing infrastructure to Gain Cash and Carry. The increasing diaspora remittances are also providing a major boost to the sector, with more capital coming into Zimbabwe from abroad directed into construction and property sales. This influx of capital is increasing the supply of available funding, which is allowing developers to increase their level of investment in the property sector.

The potential

Property development in Zimbabwe has the potential to unlock myriad opportunities for investors. With a growing middle-class and an expanding market, there is an immense potential for developers to tap into the lucrative opportunities in the sector. It is important to note that the sector is still coming around in terms of being developer friendly, think taxes and archaic regulation.

That being said, the current government has taken some steps to ease the regulatory burden, and this has opened up further opportunities for investment in the sector. Conclusion: All in all, there is an atmosphere of optimism in the Zimbabwean property sector. The future of the sector is bright, with a host of investment opportunities available. The sector has the potential to be a major contributor to the Zimbabwean economy, and through proper management and prudent investment, developers can help to unlock its abundant potential.

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