- The Public Service Pension Fund is expanding into residential, student housing, hotels, and estate developments
- Companies like Tiger Holdings, WestProp, and Chiyangwa’s Zeco are actively investing in residential, commercial, and hospitality projects, reviving underperforming assets
- Real estate provides a tangible hedge against inflation, currency fluctuations, and economic shocks, offering portfolio diversification across property types to reduce sector-specific risks
Harare - The Public Service Pension Fund (PSPF), an arm of the Zimbabwean government that manages retirement savings and pension benefits for public sector employees, is significantly expanding its property portfolio.
The move is part of a broader strategic shift aimed at protecting members’ funds from the volatility of traditional financial markets while capitalizing on Zimbabwe’s growing real estate sector.
“The returns we are targeting significantly outperform the negative real returns in money markets and the volatility of equities,” the fund said in an interview with a local media firm.
Across the country, companies from hospitality to banking are increasingly turning to property as a hedge against shocks such as inflation, currency fluctuations, and even climate-related risks.
Equities are now far less attractive to speculative investors, reinforcing the appeal of real estate as a more stable investment alternative.
Against this backdrop, PSPF’s property strategy focuses on a diversified portfolio that includes residential rentals, student housing, commercial hotels, and new estate developments.
Residential properties are expected to deliver annual yields of 6–9%, providing consistent income streams relative to property value while student housing is projected to achieve even higher returns of 8–10%, driven by strong and persistent demand from tertiary institutions across Zimbabwe.
The fund has also added the Monomotapa Hotel to its portfolio, cautiously betting on a recovery in tourism, while new developments such as Madokero Creek and Westlands aim for gross margins of 15–25% after development costs.
Beyond PSPF, other institutional investors and real estate players are actively reshaping Zimbabwe’s property market. Tigere Reit has made significant inroads in residential and commercial developments, targeting urban expansion areas where demand is outstripping supply.
WestProp, known for its high-end residential estates, continues to drive growth in suburban property development, offering modern housing solutions for middle- and upper-income earners.
Meanwhile, Zeco has returned to profit in the first half of 2025 after so many years of losses attributed to rental incomes.
These players, alongside a growing number of REITs (Real Estate Investment Trusts), illustrate a broader trend: Zimbabwean investors are increasingly favouring tangible assets that provide predictable cash flow and long-term capital appreciation.
Real estate offers a hedge against inflation and currency depreciation, advantages that money market instruments or equities cannot reliably provide in the current economic climate.
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