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For the greater part of 2022, the real estate market operated under immense pressure due to:
- Economic uncertainty
- Surging inflation
- Exchange rate volatility
- Residual Covid-19 disruptions
- Global supply chain challenges stemming from the Ukraine conflict
Yet, despite these headwinds, real estate proved its strength offering security and opportunity for investors across sectors.
Property Sales
The market was dominated by USD cash transactions, with sales trends remaining highly unpredictable. However, specific property types consistently attracted buyer interest:
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Strategically located properties priced reasonably were snapped up for redevelopment or commercial conversion
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Stands and units in secure developments saw increased demand, particularly from investors capitalizing on strong rental returns
Rentals Market
The rental market continued to dollarize, with most lease agreements now pegged in USD. Key rental trends included:
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High-rise CBD office buildings remained largely vacant as tenants moved to suburban office spaces
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Retail spaces, especially low-rise buildings, were increasingly converted into fully-fledged retail hubs with high occupancy
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Industrial and warehousing demand rose steadily, supported by a stronger logistics and manufacturing sector
Property Development
Despite the challenging macroeconomic backdrop, property development surged across Zimbabwe in 2022. Key drivers included rising urban populations, infrastructural expansion, and increasing private investment.
Residential remained the most active segment, but other sectors also saw major growth:
- Industrial, retail, and warehousing developments expanded to meet growing commercial demand
- The mining boom (e.g., lithium, platinum, gold) triggered development in logistics and support infrastructure
- Agricultural growth boosted the need for storage and processing facilities
Other notable development highlights:
- Many projects stalled by Covid-19 in prior years resumed
- Suburban office construction intensified as businesses exited the CBD
- Major roads across Harare became hotspots for new real estate activity
The Role of Real Estate Investment Trusts (REITs)
Recently launched REITs such as Tigere REIT played a pivotal role in accelerating commercial development. Noteworthy achievements included the completion of three major commercial projects in Harare alone.
Conclusion
Despite economic volatility and a looming election cycle, Zimbabwe’s real estate market performed admirably in 2022. The year was marked by:
- Strong investor appetite
- Recovery in occupancy rates
- A visible uptick in development activity
As the nation navigates inflation and currency risk, real estate continues to be a preferred hedge for both individual and institutional investors seeking long-term value and stability.
