Zimbabwe’s real estate sector is showing signs of recovery and growth despite the uncertainties and disruptions caused by the Covid-19 pandemic. The sector is expected to fully recover by the end of 2023, according to a recent report by the property market.
The report revealed that the residential sector development activity remained strong in 2023 and is projected to continue on a positive trajectory, mainly supported by the informal sector of the economy and the diaspora community. The report also noted that the industrial market is improving, with refurbishment of old stock and new builds mostly concentrated on warehousing and wholesaling. The demand for warehousing facilities is driven by increased activity and growth in other sectors of the economy, such as mining, agriculture and retail.
The real estate sector is also benefiting from the stabilization of the macroeconomic environment, which has seen inflation easing and exchange rate stability. The adoption of the US dollar as the official currency has also made it easier for foreigners to buy property in the country.
However, there are still some challenges facing the sector, such as limited access to finance, high cost of construction materials, bureaucratic processes and regulatory hurdles. The sector also faces competition from other investment options, such as stocks and bonds.
Despite these challenges, the real estate sector remains a safe haven for investment during uncertain periods and a perfect hedge against inflationary pressures. The sector is projected to grow by 1.7 percent in 2023, following a 4.1 percent growth in 2022. The sector is also expected to contribute significantly to the economic recovery and development of Zimbabwe.