INVESTORS in Zimbabwe’s exclusive office parks are recording strong uptake, as corporates and small businesses accelerate their exodus from central business districts (CBDs).
So strong is demand for these newly-built property assets that some firms report occupancy levels of up to 93%, compared to as low as 40% in traditional CBD office space.
Zimbabwe’s property market is undergoing a decisive structural shift, with capital abandoning CBDs in favour of modern suburban office, residential estates and mixed-use developments.
This week, leaders said the country’s once-dominant urban cores are continuing their slide into visible decay.
Latest full-year 2025 results from listed property firms showed a sector in transition.
Developers said the shift was no longer cyclical.
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Masimba Holdings chairman Gregory Sebborn said refurbishment works temporarily dented rental income in the period under review, but would support future growth.
“In the property sector, a temporary 3% decline in rental income was recorded due to ongoing refurbishment of some rental properties. However, once completed, these improvements are expected to drive revenue growth,” Sebborn said.
He added that the group’s Impali housing project in Shurugwi was nearing completion, with stand sales already underway, positioning the business for “significant growth in the coming financial years”.
First Mutual Properties chairman Elisha Moyo struck a cautiously optimistic tone for 2026, underpinned by expectations of improved macroeconomic stability.
“Improved macroeconomic conditions are expected to boost business confidence and planning certainty, while ongoing policy discipline should underpin investment across key sectors,” Moyo said.
“Nevertheless, the operating environment is expected to remain challenging, requiring continued focus on cost control, liquidity management and operational efficiency.”
Moyo said demand remained firm in essential services, logistics and neighbourhood retail, with increased dollarisation improving income predictability.
However, the office market continues to weaken sharply.
“In the CBD, demand for large office space remains subdued, driving rentals lower and pushing vacancy rates to 40%–60%,” he said.
“As a result, property owners are adapting and repurposing existing buildings to meet the growing demand for small office units among SMEs and startups.”
He noted a growing corporate migration to suburban locations.
First Mutual Properties reported revenue of US$8,97 million and a portfolio valuation of US$136,1 million.
Zeco Holdings said new projects and partnerships were expected to drive profitability.
Eagle Real Estate Investment Trust asset manager Bevin Ngara said demand was shifting decisively towards modern developments.
“Residential projects remained dominant… while commercial demand increasingly favoured emerging precincts over the decaying CBD,” Ngara said.
He added that tourism and healthcare assets were gaining traction, while Mazowe Mall is nearing full occupancy at 93%.
Eagle reported total income of US$3,58 million, supported by fair value gains, with total assets rising to US$39,46 million.
WestProp Holdings chairman Michael Louis said the group remained optimistic as key projects gathered pace.
“With key projects advancing steadily and on schedule, coupled with sustained investor confidence, the group is exceptionally well-positioned to deliver enduring value,” Louis said.
Meanwhile, Mashonaland Holdings chairman Grace Bema said the sector’s outlook remained uneven.
“While selected sectors demonstrate measured growth, others remain under sustained pressure,” she said.
Bema warned that CBD office markets continued to deteriorate due to shifting business models, eroding rental yields, even as residential demand holds up.
Mashonaland Holdings recorded a 13% rise in revenue to US$8,1 million.
Sector players said the trajectory will depend on macroeconomic stability, improved access to capital and coordinated infrastructure development.
Zimbabwe’s experience mirrors a broader southern African trend, where urban property markets are being reshaped by post-pandemic work patterns.
Developers are pivoting away from traditional CBDs towards decentralised business districts, lifestyle estates and mixed-use hubs.
In South Africa, vacancy rates in major CBDs have remained elevated.
Similar patterns are emerging in Zambia and Botswana, where developers are increasingly targeting retail parks, gated communities and hybrid commercial spaces that blend work, leisure and residential use.