Residential Real Estate Leases - Zimbabwe

The Residential Real Estate Leases market market in Zimbabwe is anticipated to witness a significant increase in revenue, reaching a projected value of US$4.18bn by 2024.
Among the various segments within this market, House Leases hold the dominant position, with a projected market volume of US$2.95bn by 2024.
Looking ahead, the market is expected to exhibit a steady annual growth rate of 7.79% from 2024 to 2029, resulting in a market volume of US$6.09bn by the end of the forecast period.
Zimbabwe's residential real estate lease market is experiencing a surge in demand due to the growing urban population and increased foreign investment.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Zimbabwe is experiencing significant growth and development.

Customer preferences: Customers in Zimbabwe are increasingly opting for residential real estate leases due to several reasons. Firstly, leasing offers a more affordable option compared to purchasing property, as it eliminates the need for a large upfront investment. Additionally, leasing provides flexibility and allows individuals to change their living arrangements more easily. This is particularly appealing to the younger generation who value mobility and the ability to explore different neighborhoods and cities. Furthermore, leasing provides a sense of security as it allows tenants to rely on property management services for maintenance and repairs.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Zimbabwe is the increasing demand for urban living. As more people move to cities in search of better job opportunities and improved amenities, the demand for rental properties in urban areas has surged. This trend is driven by factors such as the growth of industries and services in urban centers, the desire for a vibrant social life, and the availability of better infrastructure. Another trend in the market is the rise of co-living spaces. With the increasing cost of living and the desire for a sense of community, co-living spaces have gained popularity among young professionals and students. These spaces offer shared amenities and common areas, fostering a sense of community and reducing the financial burden of renting an entire property.

Local special circumstances: Zimbabwe has experienced political and economic instability in recent years, which has had an impact on the Residential Real Estate Leases market. The country has seen a significant influx of foreign investors, particularly from neighboring countries, who are seeking opportunities in the real estate sector. This has led to an increase in demand for rental properties, as these investors often prefer to lease properties rather than purchase them outright.

Underlying macroeconomic factors: The growth and development of the Residential Real Estate Leases market in Zimbabwe can be attributed to several underlying macroeconomic factors. Firstly, the country has seen a gradual improvement in its economic stability, with inflation rates declining and the currency stabilizing. This has increased consumer confidence and spending power, leading to higher demand for rental properties. Additionally, the government has implemented policies to attract foreign investment and promote economic growth. These policies have created a favorable business environment, encouraging both local and foreign investors to invest in the real estate sector. This has resulted in increased construction activity and the development of new residential properties available for lease. In conclusion, the Residential Real Estate Leases market in Zimbabwe is experiencing growth and development due to customer preferences for affordability, flexibility, and security. The market is characterized by the increasing demand for urban living and the rise of co-living spaces. The country's political and economic circumstances, along with underlying macroeconomic factors such as improved economic stability and government policies, have contributed to the growth of the market.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Zimbabwe

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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