Property sector to showcase ahead of the API summit

Zimbabwe’s real estate and property investment opportunities will be showcased at a dedicated Zimbabwe day, which is ahead of the API summit to be held in South Africa on September 18, 2024.

The API summit is a pan-African investor event held annually to take stock of the state of the property sector across the continent, and an investor day focused on Zimbabwe will precede the main conference to highlight the country’s real estate sector.

“Zimbabwe’s property sector has been attracting significant international interest because there is so much room for growth,” the Summit organiser, API Events, said.

“We intend to use the dedicated Zimbabwe Day to ride on that momentum and connect local project developers with over 500 international investors who will attend the Summit.”

The country is a strong investment case because of its competitive yields and return on investment rates, as well as its US dollar currency attraction.

According to the 2024 Global Property Guide, rental yields in Zimbabwe average about 10 percent higher than in other international jurisdictions.

Projects director for Troika Design Workshop, Simanga Madhlabuta, said the returns are driven by supply and demand dynamics owing to Zimbabwe’s housing backlog.

“Residential real estate is king and will remain the most dominant asset class going forward. However, other sub-sectors are growing and have the potential to deliver significant returns for discerning investors,” Madhlabuta said.

He added that a huge tourism infrastructure gap and a shortage of hospitality assets also mean there is demand for hotel assets.

“This opportunity has put Zimbabwe back on the radar of international hotel groups, as evidenced by the increasing number of facilities planned for construction in the short and medium term,” he noted.

Recently, Zimbabwe has seen the entry of international hotel chains, including Hyatt and Radisson.

Regional property expert Kura Chihota highlighted that the local market has been evolving in line with regional trends, which augurs well for players in the industry supply chain.

“Our market is aspirational and therefore demanding a higher quality product. We are seeing more densification in urban areas, with multi-floor and cluster developments becoming popular. This should translate into an upswing for industry players, be they architects, construction firms, material suppliers, or investors,” Chihota said.

Stakeholders have called for policy stability if Zimbabwe is to leverage the renewed interest.

“The Government and regulators have created platforms for growth, which has led to the improved sentiment towards the country—an example of this is the new REIT legislation,” Brett Abrahamse, MD of Terrace Africa said.

It’s crucial that currency stability is maintained and compliance and regulatory requirements are enhanced in order to unlock more capital and catalyse growth,” Abrahamse added.

Madhlabuta said while international funding is critical, local financiers also have an important role.

“Participation by local money managers can go a long way in de-risking large capital projects in their initial phases, which paves the way for international capital participation and instils confidence in our market,” he said.

The API Summit is taking place three weeks after a highly successful ZimReal 2024 Conference held in Harare in August.ebsiness