What ’26 Budget means for property investment

Mike E. Juru

ZIMBABWE’S 2026 National Budget and the Mid-Term Bud­get Review should be viewed as two chapters of the same economic story rather than separate fiscal events. While much attention has focused on inflation, taxation, exchange-rate stabil­ity and infrastructure spending, a quieter but equally significant transformation is taking place within Zimbabwe’s capital markets. The continued policy emphasis on investment, infrastructure and finan­cial market development is creating new opportunities for Real Estate Investment Trusts (REITs), while simultaneously exposing the structural weaknesses that continue to constrain their growth.

REITs are often described simply as listed property investment vehicles, yet their significance extends far beyond stock exchange listings. Around the world, successful REIT markets have transformed real estate from an illiquid asset class into a transparent, profes­sionally managed and widely accessible investment. They have enabled pension funds, insurance companies, retail in­vestors and international institutions to participate in property markets while im­proving governance, market discipline and capital allocation.

Zimbabwe has made encouraging progress in establishing the foundations of a REIT market. The National Budget reaffirmed Government’s commitment to capital market development and pro­ductive investment, while the Mid-Term Budget confirmed that this policy direc­tion remains intact. Improved macroeco­nomic stability, continued infrastructure spending and growing investor confi­dence provide a more favourable envi­ronment for institutional property invest­ment than has existed for several years.

These developments deserve rec­ognition because no REIT market can thrive within an unstable economy. Pre­dictable inflation, greater exchange-rate stability and stronger fiscal discipline improve the reliability of rental fore­casts, investment returns and long-term portfolio planning. Property investment, particularly through listed vehicles, de­pends upon confidence in the broader economy, and the budgets have contrib­uted meaningfully towards restoring that confidence.

However, confidence should not be mistaken for market maturity.

Successful REIT markets are not built on favourable macroeconomic conditions alone. They require transpar­ent regulation, efficient capital markets, reliable valuations, professional asset management, credible governance and high-quality market information. In oth­er words, REITs are not merely products of the property market — they are reflec­tions of the strength of the entire invest­ment ecosystem.

This is where Zimbabwe’s next chal­lenge begins.

While the budgets continue to support infrastructure development, comparatively less attention has been directed towards strengthening the insti­tutional framework that underpins insti­tutional property investment. Municipal inefficiencies, fragmented property in­formation, planning delays and uneven land administration continue to influence investment decisions. International in­vestors evaluate these institutional risks as carefully as they assess economic performance because they ultimately determine the predictability of long-term investment returns.

Infrastructure investment remains one of the strongest positive signals emerging from both fiscal statements. Roads, logistics networks, utilities and public infrastructure enhance acces­sibility, reduce development risk and strengthen the long-term performance of commercial, industrial and mixed-use property. Consequently, the continued emphasis on infrastructure provides a favourable backdrop for existing and fu­ture REIT portfolios.

Yet infrastructure alone does not create investment-grade assets. Interna­tional experience demonstrates that ma­ture REIT markets are characterised by properties capable of generating stable income over long investment horizons. Occupancy quality, tenant diversifica­tion, lease security, operational efficien­cy and professional asset management frequently contribute more to long-term performance than the physical size of a portfolio. Zimbabwe’s REIT market should therefore focus less on increasing the number of listed vehicles and more on improving the quality, resilience and competitiveness of the assets entering those vehicles.

This requires a corresponding shift in the way developers think about property.

Buildings designed solely to min­imise construction costs may struggle to satisfy institutional investors seeking resilient long-term income. Increasing­ly, investors are evaluating operating efficiency, maintenance requirements, adaptability, tenant experience and life­cycle performance alongside conven­tional financial indicators. Asset quality has become a strategic investment issue rather than simply a development con­sideration.

This evolution also elevates the im­portance of professional valuation.

Independent valuation has always been central to investor confidence, but the growth of REITs requires valuation to become increasingly strategic rather than purely technical. The International Valuation Standards (IVS) and the RICS Global Red Book provide internationally recognised frameworks for transparent, evidence-based valuation. However, in­stitutional investors increasingly expect valuations to explain market risks, lease sustainability, operational performance and investment resilience alongside tra­ditional market evidence. Professional judgement therefore extends beyond determining value to interpreting the factors that create and sustain value over time.

Sustainability represents another area where Zimbabwe has an opportunity to strengthen its REIT market.

Globally, Environmental, Social and Governance (ESG) considerations have become mainstream investment criteria rather than specialist environmental con­cerns. Institutional investors increasingly recognise that energy-efficient buildings, resilient infrastructure and well-gov­erned assets frequently achieve lower operating costs, stronger tenant retention and superior long-term financial perfor­mance. Consequently, sustainability has become a capital market issue as much as an environmental one.

Zimbabwe’s budgets acknowledge the importance of infrastructure resil­ience, energy security and sustainable development, but the policy framework remains incomplete. There are still lim­ited fiscal incentives encouraging green buildings, resource-efficient retrofits or sustainability-linked property invest­ment. As a result, the market receives positive policy signals but fewer practi­cal mechanisms capable of accelerating widespread adoption.

The financing landscape presents a similar opportunity. Deep and liquid REIT markets depend upon active in­vestor participation and diversified in­vestment products. Zimbabwe’s market remains relatively small, with limited trading activity constraining liquidity and price discovery. Expanding investor education, broadening institutional par­ticipation and encouraging a wider range of property sectors, including logistics, residential rental housing, healthcare, hospitality, student accommodation and data centres, would strengthen market depth while reducing concentration risk.

Equally important is the continued development of governance standards. Transparency, regular disclosure, inde­pendent valuation and professional asset management are not merely regulatory requirements; they are competitive ad­vantages that distinguish mature REIT markets from emerging ones. As Zimba­bwe seeks to attract both domestic and international capital, maintaining confi­dence in governance will become just as important as maintaining confidence in macroeconomic policy.

Ultimately, the combined message emerging from the National Budget and the Mid-Term Bud­get is one of opportunity rather than certainty. Government has established a supportive fiscal direction through contin­ued infrastructure investment, macroeconomic stabilisation and capital market development. These initiatives create favourable conditions for institutional property investment, but they do not guarantee market success. That success will depend upon strengthening the institutions, information sys­tems, professional standards and governance structures that underpin investor confidence.

The future of Zimbabwe’s REIT market will therefore be determined by more than the number of funds listed on the Zimbabwe Stock Exchange. It will be determined by the quality of the assets they own, the transparency with which they are managed, the confidence they inspire among inves­tors and their ability to mobilise long-term capital into pro­ductive sectors of the economy.

If Zimbabwe successfully aligns fiscal policy with insti­tutional reform, professional excellence and market trans­parency, REITs will become more than investment vehicles. They will become strategic instruments for deepening capi­tal markets, professionalising property ownership, attracting institutional investment and accelerating national economic development. That is the real significance of the 2026 Na­tional Budget and the Mid-Term Budget for Zimbabwe’s REIT market—and it is an opportunity that deserves far greater attention than it has received.

l Dr Juru is an accomplished business leader who is the current chairman of the Green Building Council Zimbabwe, Valuers Council of Zimbabwe and CEO of Integrated Properties. Pre­vious national leadership roles include chairman of Institute of Directors Zimbabwe, president of Real Estate Institute of Zim­babwe, inaugural chairman of REITs Association, vice president ZNCC. He has sat on several boards in the private and public sector. He passionately leads the transformation of Zimbabwe’s built environment to sustainability.