Zimbabwe’s real estate sector contributes merely 2.8 percent to national GDP, significantly below the African average of 12 percent, highlighting substantial untapped economic potential and urgent need for policy intervention.
WestProp Holdings Limited CEO Ken Sharpe revealed these statistics during the annual Zimreal Property conference, emphasizing the sector’s underperformance relative to global and regional standards. The gathering of over 300 property developers, pension fund executives, and banking professionals focused on strategies for enhancing real estate’s economic contribution.
“The government needs to provide more attention and incentives to our industry,” Sharpe stated during the conference. “We haven’t received budgetary support in Zimbabwe’s national budgets. Why can’t government begin with mortgage support?”
The mortgage sector shows particularly concerning statistics, contributing only 0.04 percent to Zimbabwe’s economy. This compares unfavorably with global standards of 50-80 percent for developed countries and 30 percent for developing economies, indicating massive potential for financial sector growth.
Sharpe calculated the economic opportunity, explaining that with Zimbabwe’s rebased economy valued at $50 billion GDP, real estate currently generates approximately $1 billion. Achieving the 12 percent African average would represent $6 billion, creating $5 billion in additional annual revenue potential.
Development costs present major barriers to sector growth. Sharpe criticized prohibitive local council fees, noting developers cannot justify $100,000 costs for submitting development plans. He advocated for fee caps and reduced bureaucratic expenses to encourage investment.
“The government should lower interest rates for developers, providing capital access at 10 percent annually rather than 15-20 percent,” Sharpe recommended. “Tax incentives could exempt new developers from taxes for five years to encourage development.”
Public Service, Labour and Social Welfare Minister Edgar Moyo acknowledged the sector’s importance, stating government commitment to creating enabling environments for public-private partnerships. “We remain committed to fostering partnerships that drive economic growth and create lasting value for Zimbabweans,” he affirmed.
Fine and Country Zimbabwe CEO Karen Nyenga emphasized collaborative approaches with legislators and local councils to streamline permit processes, reduce costs, and eliminate regulatory complexity hindering development projects.
The conference highlighted the critical need for policy reforms to unlock Zimbabwe’s real estate potential and align the sector with regional economic benchmarks.
About The Author
