Mishma Chakanyuka, Staff Writer 
BOOMING infrastructure projects and a thirst for property investments are expected to propel Zimbabwe’s construction sector to an 8 percent growth spurt in 2024, according to research firm First Mutual Wealth (FMW).
The industry, still recovering from the Covid-19 slump that stalled numerous projects, is now basking in resurgent activity.
The government itself is expecting a 3,4 percent growth in the sector this year, with ambitious plans to construct 220 000 housing units by 2025.
“Factors like the hedging potential of property assets against inflation and increased infrastructure spending by both private and public players lead us to believe the construction sector will expand by 8 percent,” FMW stated in a recent report.
Retail, warehousing, and specialised developments are leading the charge in demand, the report noted.
However, FMW cautioned that inadequate infrastructure support from local councils could stifle growth by driving up development costs and dampening yields.
“The government’s masterplan requiring councils to provide adequate supporting infrastructure would significantly reduce development costs and sustain this sector’s momentum,” the report emphasised.
The firm also anticipates the extension of the US dollar trading environment to be crucial for maintaining property demand.
However, concerns linger about a potential slowdown in the medium term due to a weakening economy.
One major hurdle to sustained growth, according to FMW, is the lack of long-term financing from banks. The virtual absence of a mortgage market severely restricts potential expansion.
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