The growing involvement of local developers in an industry once dominated by multinational companies is a welcome development. The sector is now seeing a rise in local entrepreneurs bringing fresh perspectives and innovative approaches to property development. This local involvement is crucial for the industry’s sustainable growth, ensuring developments meet the specific needs and preferences of the Zimbabwean market. These developers have successfully seized opportunities in a previously inaccessible industry, showcasing their ability to thrive amid competition.
Urban development, particularly in Harare, is central to this real estate boom. The capital city is rapidly growing, with high-end developments quickly filling previously vacant spaces. These projects often feature modern architectural designs and focus on maximizing space efficiency, with many new buildings constructed with multiple floors to optimize land use. This trend towards vertical development reflects Harare’s transformation into a bustling urban centre.
Commercial real estate is another segment experiencing robust growth. The demand for office spaces has increased, driven by expanding business activities within the country. Major developers dominate this segment, contributing to rising office space rents. An example of this growth is Sam Levy’s Village, a prestigious shopping centre in Harare currently on the market for an impressive US$120 million. This estate, spanning 30 acres of prime Borrowdale real estate, features a mix of modern stores and diverse architectural styles.
Despite these positive developments, the construction sector faces several challenges. Economic stability remains a concern, with high inflation rates, currency fluctuations, and political uncertainties potentially impacting growth. However, there is optimism that the gradual easing of supply-side disruptions will bring more stability to the market. Construction material costs have been a significant concern, with prices remaining high due to factors such as import dependencies and global supply chain issues. Nonetheless, there is hope for greater price stability in the coming months, providing more certainty for project costing and planning.
Ongoing infrastructure projects, including road improvements, utility installations, and public amenities, present numerous opportunities for the construction industry. These projects not only enhance residents’ quality of life but also increase Zimbabwe’s attractiveness as an investment destination. The construction industry is poised for continued growth over the next few years, with forecasts suggesting a steady value of new construction projects following the sharp declines observed in 2023. With increased local developer involvement, favourable regulatory changes, and ongoing infrastructure projects, the sector is well-positioned to overcome existing challenges and capitalize on emerging opportunities.
Zimbabwe’s construction and housing markets are in a dynamic phase of growth and transformation. While hurdles remain, the sector’s resilience and the strategic involvement of both local and international players present a promising future. As economic conditions stabilize, the construction industry is expected to play a crucial role in the country’s development, offering substantial benefits to investors, developers, and residents alike.