Online Reporter
Nelson Gahadza, [email protected]
Real Estate Investment Trusts (REITs) listed on the Victoria Falls Stock Exchange (VFEX) recorded a sharp rebound in trading activity in May 2026, buoyed by growing investor appetite for US dollar-denominated property securities.
The REITS also benefited from strong underlying performance in the newest property investment vehicles.
Latest VFEX statistics show that trading volumes on the REITs board jumped more than fourfold to 2,47 million units in May from 585,913 units in April, while turnover climbed to US$355,035 from US$84,112 over the same period.
The significant increase in market activity also lifted total market capitalisation by 6,8 percent to US$126,3 million at the end of May, up from US$118,3 million in April.
The number of trades also rose to 295 from 219, signalling broader investor participation.
Analysts believe the performance underscores growing confidence in Zimbabwe’s US dollar-denominated property investment market as investors increasingly seek inflation-resistant assets that generate stable income streams.
VFEX currently hosts two REITs, the Eagle Real Estate Investment Trust and Pfuma Real Estate Investment Trust, both sponsored by asset managers seeking to unlock value through commercial, retail and mixed-use property developments.
The two counters are still in their growth phase, with both aggressively deploying capital into new developments across Harare, Mazowe and Victoria Falls.
The Eagle REIT delivered a particularly strong first quarter, posting revenue of US$662,574, representing a 144 percent increase year-on-year, while profit for the period surged to US$213,936 from US$17,828 during the comparative period.
Its net asset value also increased by 10,5 percent to US$33,3 million.
The REIT’s flagship Mazowe Walk Mall became operational during the quarter and immediately achieved a 93 percent occupancy level, strengthening recurring rental income prospects.
The trust has also commenced construction of a drive-through quick service restaurant and continues work on apartment developments in Victoria Falls.
Residential stand sales remain a major contributor to earnings growth, supported by robust demand from both institutional and individual investors.
Meanwhile, the Pfuma REIT delivered a stable inaugural performance after listing on the VFEX in February.
The fund said revenue was supported by its seed assets, Hogerty Hill Centre and Chegutu properties, alongside investment income.
Management expects to complete the acquisition of the Cork Road Quick Service and Casual Dining Centre during the second quarter while advancing four pipeline projects scheduled for completion this year.
Investment analyst Mr Enock Rukarwa said the performance reflects investors’ growing preference for hard currency-denominated assets that preserve value and generate predictable income, particularly in an environment
where liquidity remains selective across capital markets.
He has previously noted that investors are increasingly becoming more discerning and gravitating towards assets with tangible underlying value.
Trigrams Investments analyst Mr Wafa Kuchera said the VFEX continues to quietly build momentum, with investors beginning to recognise its importance as a long-term capital mobilisation platform.
He has previously observed that improving investor sentiment and stronger market fundamentals could make 2026 a turning point for the exchange.
Analysts say the May performance also demonstrates the growing maturity of Zimbabwe’s REIT sector.
Unlike traditional property ownership, REITs allow investors to gain exposure to diversified income-generating assets without directly purchasing and managing physical property.
With development pipelines expanding and occupancy levels remaining robust, market observers expect the sector to continue attracting pension funds, diaspora investors and institutions seeking stable US dollar returns.
