Online Reporter
Nelson Gahadza
Senior Business Reporter
Zimbabwe’s Real Estate Investment Trusts (REITs) market experienced a slowdown in May 2026, with turnover value, trading volume and market capitalisation declining from April levels, highlighting softer investor activity amid continued interest in property-backed investment vehicles.
According to Zimbabwe Stock Exchange (ZSE) statistics, the value of trades on the REIT board fell by 44,3 percent to ZiG22,27 million in May from ZiG39,97 million recorded in April.
Trading volumes also declined sharply by 48,1 percent to 19,17 million units from 36,9 million units during the same period.
Market capitalisation dropped by 6,4 percent to ZiG2,82 billion at the end of May from ZiG3,01 billion in April, reflecting weaker valuations across listed property investment vehicles.
However, the number of trades remained relatively stable, easing marginally from 580 transactions in April to 577 in May, suggesting that investor participation remained broadly intact despite lower transaction values.
The latest figures indicate that while the REIT sector continues to attract interest as an alternative investment asset class, trading momentum softened during the month.
REITs are collective investment schemes that pool capital from investors to acquire and manage income-generating real estate assets such as shopping centres, office buildings, industrial parks and mixed-use developments.
Investors gain exposure to the property market without directly owning physical property and earn returns through dividends and capital appreciation.
Zimbabwe introduced REITs as part of efforts to deepen capital markets and broaden investment options beyond traditional equities and bonds.
The country’s market has expanded steadily since the launch of the first REIT in 2022.
The sector now includes listed property funds such as Tigere REIT and Revitus REIT, while 2025 also saw the introduction of Eagle REIT on the Victoria Falls Stock Exchange, the country’s first US dollar-denominated REIT.
Investor interest has been rising as property increasingly becomes a preferred hedge against inflation and currency volatility and the market also witnessed the listing of Pfuma REIT on VFEX.
Despite the monthly decline, the REIT market remains significantly larger than it was in its early years, underlining the growing acceptance of the asset class among institutional and retail investors.
Zimbabwe Stock Exchange chief executive Mr Justin Bgoni has previously highlighted REITs as an important product diversification tool capable of attracting long-term capital into the property sector.
Market analysts say the May slowdown may reflect temporary profit-taking and cautious investor positioning rather than weakening fundamentals.
“The month-on-month decline should not necessarily be interpreted as weakening investor confidence. REITs remain an attractive long-term asset class because they provide investors with inflation protection, regular income streams and exposure to high-quality real estate assets.
“What we are seeing is a normal market adjustment following stronger activity earlier in the year,” financial analyst Mr Malone Gwadu said.
Analysts believe the long-term outlook for Zimbabwe’s REIT market remains positive, supported by growing investor appetite for income-generating assets and efforts to deepen the country’s capital markets.
