Real estate tops 2024 investments at US$2bn
THE real estate sector led investment inflows into Zimbabwe in 2024, accounting for nearly US$2 billion out of the cumulative US$4,6 billion ventures local and international investors proposed to establish across various sectors.
The figure represents a marked decline in projected investments in the country after investors sought to start about US$16,6 billion worth of projects in the country in 2023.
But the proposed investments approved last year remain among the highest in the history of Zimbabwe, signifying huge investor appetite in the country since the Second Republic came to power in 2017.
The Sunday Mail Business could not determine the finer details of the real estate investment projects approved last year. However, the projects underscore sustained strong investor interest and demand in the real estate and construction sectors.
The boom in construction over the last few years has transformed many parts of Zimbabwe, including Harare and other major urban centres, creating new opportunities in commercial, industrial and residential real estate.
The Zimbabwe Investment and Development Agency (ZIDA) anticipates strong investor interest in real estate and construction sectors to persist in 2025.
According to ZIDA’s fourth-quarter project approval 2024 report, Zimbabwe’s construction sector has been one of the biggest beneficiaries of the investment boom in the country.
The energy sector recorded a projected investment of US$1,04 billion in 2024, while manufacturing had US$629,2 million worth of projects approved.
ZIDA expects US$592,42 million to be invested in mining, which also remains a key magnet of investments for the country.
Mr Tinashe Moyo, a real estate fund manager at MTI Capital, said the real estate boom reflected increased confidence in Zimbabwe’s economy, with investors keen to participate in the country’s transformation.
Many investors based in the diaspora have also been investing heavily in the development of residential properties in the country, driving the ongoing construction boom.
“The housing market is benefitting from a mix of local and foreign investments, creating an attractive landscape for sustainable long-term growth,” he said.
He highlighted that projects such as the Melfort Smart City were attracting long-term investors due to their potential for sustainable returns.
With university enrolment on the rise, student accommodation has become a critical area of real estate investment. Many universities have inadequate infrastructure, especially accommodation for students.
ZIDA approved several student housing projects, including Bindura University of Science Education’s US$12 million plan to construct a 1 500-bed hostel, Great Zimbabwe University’s US$20,6 million project to accommodate 2 058 students and Chinhoyi University of Technology’s planned US$9,5 million investment into the construction of a five multi-storey hostel block.
Midlands State University is developing accommodation facilities at its campuses in Gweru, Zvishavane, and Kwekwe at a total cost of US$38,9 million to house over 3 500 students.
The National University of Science and Technology is implementing a US$17,5 million plan to develop cluster housing and dining facilities for 1 000 students.
Mr Richard Ncube, an investment analyst at ZV Capital, explained that student housing had emerged as a viable investment class, offering stable rental income and strong occupancy rates.
“Investors are increasingly seeing student housing as a strategic real estate asset, as universities struggle to meet demand (for accommodation),” he said.
“The investment in student housing is crucial in ensuring that Zimbabwe’s higher education institutions remain competitive and provide a conducive learning environment. We expect these projects to have a lasting impact on the country’s education sector,” ZIDA said.
Despite strong demand and investment momentum in the sectors, the pace of infrastructure development and financial limitations continue to hamper supply. However, public-private partnerships (PPPs) have been identified as crucial in addressing the issues.
ZIDA remains optimistic about the sector’s prospects, stating: “The opportunities in the housing and student accommodation sectors are extensive, and strategic investments will help Zimbabwe achieve its long-term urban development goals.”
With 2025 expected to bring further capital inflows, the real estate and construction industries are poised for sustained transformation, presenting lucrative opportunities for investors in housing and student accommodation development.
Dr Tinashe Manzungu, president of the Zimbabwe Building Contractors Association, said the construction and real estate industries were experiencing positive growth, driven by strong investor interest.
“A lot of projects have been undertaken in the real estate sector, which has further given a huge lifeline to the construction industry and the ZIDA statistics are by no way a surprise.
“The construction industry has also been a huge beneficiary of the huge real estate investments as many projects are sprouting across the country.”
West Properties, a prominent player in the construction industry, is currently involved in several projects, including the Warren Hills Golf Estate and Pomona City housing project in Harare.
The group chief executive officer, Mr Ken Sharpe, stated that the company seeks to reach a milestone of producing 50 billion bricks by the year 2050.
“The company is embarking on an ambitious project to construct a brick moulding plant as we are faced with a number of projects that require us to insource bricks. The sector is registering tremendous growth as we are undertaking several residential projects,” he said.
ZIDA has also approved several PPP projects for road construction to upgrade the Harare-Nyamapanda highway.-chroncile
