FBC Securities (Private) Limited (FBCS) says a mixed-use real estate investment trust (REIT) structure is strategically optimal for Zimbabwe in harnessing high, stable cash flows from industrial and retail assets.
According to FBCS, the African REIT market, while growing, remains markedly underdeveloped within the global landscape, with a total global market valued at approximately US$4 trillion.
Yet, Africa’s entire REIT capitalisation represents only a fractional share.
South Africa dominates this continental space with a market capitalisation of around US$8,5 billion, followed distantly by Nigeria (US$600 million), Kenya (US$300 million) and Zimbabwe (US$261 million), according to FBCS.
Hence, in its new 2026 Economic Outlook Report, FBCS said this stark concentration highlights a significant investment gap and an untapped opportunity across the continent, particularly in markets with robust underlying property fundamentals like Zimbabwe.
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“Zimbabwe’s property sector presents a compelling case for REIT structuring, anchored by strong macroeconomic drivers such as stabilising monetary sector and booming foreign currency receipts,” FBCS said.
“The sectoral yield profile, highlighted on the preceding slide, underscores where value can be aggregated: Industrial (12%), retail (7,5%), offices (7%), and residential (6%).
“The industrial segment, especially warehousing near informal hubs, delivers yields of 12%-13%, driven by logistics demand from the expansive informal economy.”
FBCS said this high-yield asset class would form a powerful income core for a prospective REIT.
“However, to harness gains from all the sectors while spreading risk, a mixed-use REIT structure is strategically optimal for Zimbabwe,” FBCS said.
“It would harness the high, stable cash flows from industrial and retail assets while incorporating growth-oriented residential exposure catering to the diaspora.”
The financial services firm noted that this model provides essential diversification, mitigating specific risks such as infrastructure strain in residential nodes or cyclical shifts in office demand.
“A key strategic catalyst is the development of a scalable REIT with sufficient size and depth to attract institutional capital through the delivery of meaningful and sustainable dividend payouts,” FBCS said.
“Given Zimbabwe’s history of economic uncertainty, investor preferences are skewed toward income certainty rather than capital appreciation.
“Consequently, for a Zimbabwean REIT to achieve strong market appeal, it must attain adequate scale to consistently generate and distribute attractive dividends, thereby aligning with prevailing risk-return expectations.”
These structural arguments are reinforced by on-the-ground property market dynamics, where demand is increasingly underpinned by foreign currency inflows and shifting economic activity.
According to FBCS, both diaspora capital and the expanding informal economy are reshaping asset demand and rental performance across key real estate segments.
“The Zimbabwean property market continues to be fundamentally supported by robust foreign currency inflows, with USD receipts reaching US$16,2 billion, marking a 22% year-on-year increase,” FBCS said.
“The diasporans have been particularly active in the sector, becoming critical demand drivers, accounting for approximately 40% of Harare’s property demand in 2024.
“Concurrently, the ongoing informalisation of the economy is reshaping real estate demand, creating pronounced opportunities in asset classes that service this expanding sector.”
Research from FBCS shows that this structural shift is reflected in the performance across various market segments, with reported average rental yields ranging from residential at 6%, offices (7%), retail (7,5%) and industrial (12%).
Last year, United States dollar-denominated collective investment schemes funds under management increased by 10,26%, rising to US$92 million by June from US$83,44 million in March.
The growth was largely attributed to Seatrite Five REIT and Eagle REIT, underscoring rising investor appetite for income-generating, hard-currency property assets amid persistent economic uncertainty.
