Construction & Real Estate.

Snapshot

• Construction ~3% of GDP, but pivotal to mining and energy capex cycles.
• Housing backlog: ~1.5 m units (Min. of Local Govt 2024).
• Real estate market dominated by family-owned developers + a handful of REITs.
• USD pricing the norm; sale-and-leaseback structures common.

Sub-sectors

Residential

• New estates around Harare (Borrowdale Brooke, Pomona, Westgate, Hatfield, Saturn, Mt Pleasant Heights), Bulawayo (Burnside Glen, Riverside Country Estate), Mutare (Murahwa Park), Vic Falls (Masuwe), Gweru (Senga Ridges).
• Diaspora-financed builds dominate the upper-middle segment.
• Mortgage market is shallow: <5,000 active mortgages, mostly through CABS, ZB, FBC.

Commercial / office

• Vacancy rates in Harare CBD ~25–30%; Avenues/Belgravia better at 10–15%.
• Move to suburban office parks (Borrowdale, Highlands) accelerated post-COVID.

Retail malls

• Sam Levy's Village, Westgate, Borrowdale Village, Long Cheng Plaza, Joina City — Harare.
• Bulawayo: Centenary Park, Pioneer House (under-leveraged retail real estate).
• Mall vacancy moderating; Pick n Pay and OK as anchor tenants.

Industrial / logistics

• Special Economic Zone properties: Sunway City, Vic Falls SEZ, Imvumila SEZ.
• Bonded warehouses + ICDs near Beitbridge, Mutare, Harare Airport.

REITs and listed property

• Tigere Property Fund (ZSE): Zimbabwe's first listed REIT, anchored by Highland Park shopping centre.
• Mashonaland Holdings (ZSE): industrial + commercial portfolio.
• First Mutual Properties (ZSE): mixed portfolio.
• Pearl Properties (ZSE): mixed portfolio incl. Joina City.
• ZHL (Zimre Holdings) (ZSE): insurance + properties.

Construction industry

Contractors

• Local: Costain Africa, Bitumen World, Tarcon, Geozim, Murray & Roberts (regional).
• Chinese: Sinohydro, CHEC, CRBC (Belt & Road heavyweights).
• Indian: Afcons, Ashoka Buildcon — on selected road projects.

Materials

• Cement: PPC, Khayah, Sino-Zim. Local consumption ~1.5 m tonnes/yr.
• Steel: imports historically dominant; Manhize plant flips balance.
• Bricks: Macdonald Bricks, Beta Bricks; local clay abundant.
• Tiles & sanitaryware: imports from China, RSA, Turkey dominate.

Profitability

Segment	Gross margin	EBITDA
Residential development	22–35%	14–22%
Commercial REIT	65–75% NRI	n/a
Hotel real estate	35–50% NRI	n/a
Civil contractor (road)	12–22%	6–12%
Specialised MEP contractor	18–28%	9–15%
Building materials retail	22–32%	8–14%

Challenges

• Land governance: title deed processing slow; offer letters vs deeds confusion.
• Council services lag (sewer, water) at new estates.
• Capital cost: mortgage rates 12–15% USD too high for mass market.
• Tariffs on imported materials.
• Skill availability: certified contractors, civil engineers, project managers.
• Forex retention by exporters squeezes USD liquidity available for contractors.

Advantages

• Massive housing demand backlog.
• Diaspora capital flows: ~30% of remittances reportedly invested in property.
• AfCFTA + SADC trade opens regional contractor expansion.
• Mining capex cycle (lithium, Manhize, gold) drives industrial construction.
• Tourism upgrades (Vic Falls + Eastern Highlands) anchor hospitality builds.

Example companies

• Tigere Property Fund (ZSE)
• Mashonaland Holdings (ZSE)
• Pearl Properties (ZSE)
• Old Mutual Property — large insurer-owned portfolio.
• WestProp Holdings (VFEX) — Pomona City megaproject developer.
• CBZ Properties — retail and office.
• PPC Zimbabwe / Khayah Cement — cement.
• Macdonald Bricks — bricks and pavers.

Opportunity hooks

• Affordable housing finance (US$15k–35k stock).
• Senior living / retirement villages for returning diaspora.
• Build-to-rent residential REITs for diaspora capital.
• Modular and ICF (insulated concrete form) construction.
• Smart estate utilities (solar microgrid + borehole + fibre + security).
• Cold storage warehousing for horticulture exports.
• Industrial parks adjacent to lithium mines and Manhize steel plant.