Online Reporter
Michael Tome
THE real estate and energy sectors emerged as major preferred investment areas for the fourth quarter of 2024, with projected values of US$2 billion and US$1 billion, respectively, according to the Zimbabwe Investment and Development Agency (ZIDA).
Real estate accounted for a substantial 43,60 percent of the total projected investment values for the quarter, while the energy sector, focusing on renewable resources, contributed an investment value of US$1,043 billion, which translates to 22,76 percent of the overall investment forecast.
This comes as the Zimbabwe Stock Exchange (ZSE) Real Estate Index also recorded the highest gains in 2024, registering a 649 percent increase to close at 748,62 points.
The ZSE currently lists two real estate investment trusts (REITs): the Tigere REIT and the Revitus Property Opportunities REIT.
In the quarter under review, the total value traded on the REIT board reached ZiG155,93 million, with 225,83 million REIT units exchanging hands.
As of November 30, 2024, the market capitalisation for the REIT sector stood at ZiG1,68 billion, reflecting a 288 percent increase since the introduction of the new currency.
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, again accounting for 43,60 percent; while the energy sector captured 22,76 percent during the same period.
The energy sector had nine new licences issued, with capital equipment worth US$541,86 million coming from abroad. It emerged as the most sought-after area in terms of investment inquiries, representing 13 percent of total inquiries made.
The mining sector attracted 21 inquiries, constituting 11 percent during this reporting period.
“The real estate sector had the highest projected investment value of US$2 billion, accounting for 43,60 percent of the total projected investment value in the fourth quarter of 2024, followed by the energy sector with a projected investment value of US$1,043 billion, accounting for 22,76 percent of overall projection. Analysed by sector, the mining sector continues to attract the greatest number of investors measured by the number of licences issued.
“In terms of value investors are committing to invest in the real estate sector and had the highest value, accounting for 43,60 percent of the total projected investment for the quarter. The energy sector was next, accounting for 22,76 percent of the projected investment value for the quarter,” said ZIDA chief executive officer Mr Tafadzwa Chinamo in the fourth quarter report.
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 a growing interest in real estate.
During the WTM event in London from November 4 to 7, 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 Masue Special Economic Zone (SEZ) in Victoria Falls.
The agency’s focus was on showcasing opportunities available for tourism infrastructure development in the planned Masue 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.
“The market capitalisation for the REITs market was ZiG1,68 billion as at November 30, 2024, representing a 288 percent increase since the introduction of the new currency, while the Real Estate Index recorded the highest gains in 2024, registering a 649 percent increase to close at 748.62 points.
“The total value traded on the REIT board was ZiG155,93 million and the total number of REIT units that exchanged hands in 2024 was 225,83 million,” said the ZSE in its December 2024 communique.
Financial research firm Equity Axis also noted that real estate is outpacing other sectors of the economy in terms of growth.
“The year 2024 revealed an astonishing ascent of the real estate sector. This sector, represented by two companies on the ZSE, Mashonaland Holdings Limited (Mashholdings) and First Mutual Properties (FMP), has not only captured investor attention on the capital markets, but also showed remarkable growth compared to other sectors,” said Equity Axis in its weekly update.
