Harare, Zimbabwe - Zimbabwe's property market is exhibiting notable activity and attracting significant investment, navigating a dynamic economic environment. Recent data and market observations highlight a sector demonstrating resilience and potential, alongside ongoing challenges.

According to recent reports, the real estate sector emerged as a top performer in attracting investment towards the end of 2024, with projections indicating continued interest into 2025. This underscores a growing confidence among both local and international investors in the long-term prospects of the Zimbabwean property market.

Driving this momentum is a persistent demand for housing, particularly in urban and peri-urban areas, fueled by factors such as urbanization and diaspora remittances. This demand is contributing to rising property values in certain segments, with areas in Harare and other major centers seeing appreciation.

However, the market is not without its complexities. Affordability remains a key concern for many potential buyers, exacerbated by limited access to flexible financing options and the impact of inflation and currency fluctuations on construction costs and property pricing. The introduction of the new ZiG currency has introduced new dynamics in property valuations, requiring adaptation from market participants.

Development activity continues, with both private developers and government-backed initiatives working to address the housing backlog. Projects range from serviced stands and residential housing units to multi-storey flats in urban and rural growth points, aligning with the government's targets for housing delivery. The focus on developing integrated settlements and improving infrastructure is also gaining traction.

The commercial property sector is undergoing a transformation, with a noticeable shift away from traditional Central Business District (CBD) office spaces in some areas, like Harare, towards suburban locations and industrial properties. High vacancy rates in some CBDs reflect changing work patterns and business needs, while the industrial sector is seeing growth linked to increased activity in areas like mining, agriculture, and logistics.

Investment in Real Estate Investment Trusts (REITs) on the Zimbabwe Stock Exchange (ZSE) has also shown positive movement, indicating alternative avenues for participating in the property market.

Despite the positive investment trends and ongoing development efforts, challenges such as infrastructure deficits, reliable energy supply, and the need for consistent regulatory frameworks continue to influence the pace and scale of real estate growth.

Overall, the Zimbabwean property market in early 2025 presents a landscape of opportunity driven by demand and investment, while simultaneously grappling with economic realities and infrastructure requirements. Stakeholders are keenly watching how the interplay of these factors will shape the market's trajectory in the coming year.