Zimbabwe property boom reshapes Harare skyline as investment commitments hit $2bn
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Zimbabwe's capital is undergoing its biggest construction wave in decades, with the investment agency recording $2 billion in real estate commitments in the first quarter as high-end projects reshape Harare's skyline.
After decades of stagnation, Harare's skyline is being transformed by a wave of high-end development, with foreign investor confidence rising and new businesses opening across Zimbabwe's capital. The Zimbabwe Investment and Development Agency recorded $2 billion in real estate investment commitments in the first quarter of the year, according to a report by China Daily.
The new projects combine luxury residential living, high-rise gated communities, commercial and retail space, hotels and recreational facilities, mostly concentrated in the central business district and upmarket suburbs. Among the developments recently completed or under construction are Millennium Heights in Borrowdale, the Mall of Zimbabwe, described as the country's largest shopping centre, and the Afreximbank African Trade Centre, which is nearing completion and is intended to position Harare as a gateway for continental trade under the African Continental Free Trade Area. A $500 million smart-city project is also taking shape next to the Chinese-built New Parliament Building.
The construction wave is being supported by improving macroeconomic indicators. The International Monetary Fund and the Zimbabwean government both project about 5 percent gross domestic product growth this year, and the World Bank removed the country from its list of fragile and conflict-affected situations with effect from July. Presenting his 2026 midterm budget review in August, Finance Minister Mthuli Ncube said re-engagement efforts had lifted foreign direct investment to $965 million last year from $597 million in 2024.
Analysts have pointed to economic reforms and government incentives as the main drivers of investor interest. Citigroup chief Africa economist David Cowan wrote in a client note that perceptions and reality may now be increasingly out of kilter given the speed at which Zimbabwe's economic turnaround has started to play out since 2025.
The government says it is reviewing the country's model building bylaws to cut costs and accelerate development, with Minister of National Housing and Social Amenities Paul Mavima saying the review will expedite alternative technologies and address the need to build settlements with climate-resilient materials. Business licence fees have also been cut to attract investors. However, the urban renewal drive has raised concerns over a wave of housing demolitions by the Harare City Council in low-income suburbs, where the local authority says targeted structures were built on illegally acquired council land.