STRONG foreign currency receipts and sustained diaspora participation continue to drive a huge appetite for properties in Zimbabwe’s real estate, underpinning resilience across key segments of the market.
Stockbroking firm FBC Securities noted in its 2026 economic outlook report that Zimbabwe’s foreign currency receipts reached US$16,2 billion in 2025, marking a 22 percent year-on-year increase.
This provides a solid macroeconomic anchor for property investment activity.
“Rising US dollar receipts and sustained diaspora participation have reinforced demand, particularly in residential and mixed-use developments,” reads part of the report.
The report highlights that the ongoing informalisation of the economy is reshaping real estate demand, creating pronounced opportunities in asset classes that service the expanding informal sector.
“This structural shift is increasingly evident in performance across market segments, with average rental yields reported at six percent for residential properties, seven percent for offices, 7,5 percent for retail and as high as 12 percent for industrial assets,” the stockbroking firm said.
FBC Securities said the industrial segment, especially warehousing facilities located near informal trading hubs, is delivering yields of between 12 and 13 percent, driven by strong logistics demand from the expansive informal economy.
“This high-yield asset class would form a powerful income core for a prospective REIT,” the firm said.
FBC said that with the total global REIT market valued at about US$4 trillion, Africa’s share remains marginal.
South Africa dominates the continent with a market capitalisation of around US$8,5 billion, followed by Nigeria at US$600 million, Kenya at US$300 million and Zimbabwe at US$261 million.
“This stark concentration highlights a significant investment gap and an untapped opportunity across the continent, particularly in markets with robust underlying property fundamentals like Zimbabwe,”
The firm argues that Zimbabwe presents a compelling case for REIT structuring, anchored by stabilising monetary conditions and booming foreign currency receipts.
It recommended a mixed-use REIT structure, combining high and stable cash flows from industrial and retail assets with growth-oriented residential exposure catering to the diaspora.
“A key strategic catalyst is the development of a scalable REIT with sufficient size and depth to attract institutional capital through the delivery of meaningful and sustainable dividend payouts,” FBC Securities said.
The stockbroker noted that local investors remain biased toward income certainty rather than capital appreciation, given Zimbabwe’s history of economic uncertainty in the past, which has come under control since the new structured currency was introduced in April 2024.-herald
