marble nkomo
Sikhulekelani Moyo, Business Reporter
THE development happening in the Matabeleland region has motivated the diaspora community to invest in the real estate sector, an expert has said.
The real estate sector in Zimbabwe is experiencing significant growth, driven by both domestic and international investments. Remittances from the diaspora, estimated at over US$1 billion annually, have become a critical source of capital for property acquisitions, with many Zimbabweans abroad viewing real estate as a stable store of value amid currency fluctuations.
The sector is expected to attract even more investment this year, with a projected investment value of US$2 billion in the fourth quarter of 2024.
This growth is evidenced by the development of various properties on the outskirts of major central business districts, where many businesses are moving. The trend towards decentralisation is being driven by rising rental costs in city centres and the need for larger, more affordable commercial spaces that can accommodate warehousing and parking.
The Zimbabwe Investment Development Agency (Zida) highlights the sector’s potential to uplift Zimbabwe’s economy, with a focus on housing and construction as major objectives of Vision 2030. The Government has identified the construction industry as a key enabler of economic transformation, targeting the delivery of 1,5 million housing units by the end of the decade.
Invest in Matabeleland campaign leader Mr Ntando Ndlovu said Bulawayo and the wider Matabeleland region are seeing renewed real estate momentum driven by demand for planned communities, secure residential estates and mixed-use developments that meet modern lifestyle expectations.
He said projects such as Kings City, Hopeville, and iSingo Estate reflect a shift away from unstructured urban sprawl towards serviced stands and professionally managed developments — a trend that is particularly attractive to diaspora buyers and long-term investors.
Industry observers note that this shift is also helping to formalise property ownership and improve access to mortgage finance, as banks increasingly view titled, serviced stands as lower-risk collateral.
Mr Ndlovu said flexible payment terms are also playing a significant role in market activation, allowing investors to secure property while managing capital commitments over time.
Developers are increasingly offering payment plans spanning 12 to 36 months, often with no interest, making home ownership more accessible to middle-income earners who would otherwise struggle to raise lump sum payments.
“From the Invest in Matabeleland perspective, real estate is a cornerstone sector because it anchors population growth, stimulates construction and supply chains and creates a platform for secondary investments in retail, tourism, and services,” said Mr Ndlovu.
“When developments are located within or aligned to special economic zones, the additional tax incentives further strengthen project viability and investor confidence.
“In this context, property investment is not only about owning land or buildings, it is about participating in the structured growth of the region’s economic future.”
As of November 2024, the market capitalisation for the real estate sector stood at ZiG1,68 billion, reflecting a 288 percent increase since the introduction of the new currency.
Analysts attribute this sharp rise to investors seeking refuge from inflationary pressures, with property emerging as a preferred hedge against currency devaluation. Evaluation by sector shows that the mining industry continues to attract the highest number of investors into the country, as evidenced by the number of licences issued.
However, in terms of financial commitment, the real estate sector leads with the highest investment value, accounting for 43,60 percent, while the energy sector captured 22,76 percent during the same period.
This suggests that while mining attracts numerous small-scale investors, real estate commands larger, more concentrated capital outlays, often from institutional investors and high-net-worth individuals.
From Zida’s engagements at the World Travel Market (WTM) 2024 and hosting of the Illinois State Black Chamber of Commerce (ISBCC) delegation, it emerged that there is growing interest in real estate.
During the WTM event in London from 4 to 7 November 2024, Zida, in collaboration with the Zimbabwean Embassy in the United Kingdom and Africa Travel Connect, presented a compelling investment case, and 12 potential investors expressed keen interest in developing real estate, particularly within the Masuwe Special Economic Zone (SEZ) in Victoria Falls.
The Masuwe SEZ, located near the Victoria Falls International Airport, is envisioned as a tourism hub featuring luxury hotels, conference facilities and residential developments designed to cater to high-end travellers and investors.
However, industry stakeholders caution that sustained growth will require further reforms, including reducing the cost of construction materials—which remain inflated due to import duties and logistical challenges—and streamlining land title registration processes to improve transaction efficiency.
The agency’s focus was on showcasing opportunities available for tourism infrastructure development in the planned Masuwe SEZ.
In December 2024, the agency hosted an ISBCC delegation, which expressed significant interest in the local real estate market. Some delegation members made connections with local property development businesses.
According to the ZSE, the real estate sector’s remarkable growth on the bourse is attributable largely to the introduction of the ZiG (Zimbabwe Gold) currency in April 2024.
Online Reporter