Retail Property Market in Zimbabwe Shifts Toward SMEs and Mixed-Use Spaces

Zimbabwe’s retail property market is shifting toward SMEs, informal traders, and mixed-use developments as traditional large retailers downsize and landlords adapt to economic realities and changing consumer behavior (image source)

HARARE – Zimbabwe’s retail property market is undergoing a major transformation in 2025, as the dominance of large chain stores gives way to a vibrant ecosystem of small and medium enterprises (SMEs) and mixed-use developments, according to a new report by Propertybook.

The shift is driven by changing consumer behavior, the rise of informal trade, and the economic realities of operating in a high-inflation, low-credit environment. Retail landlords are adapting by subdividing large spaces, offering flexible leases, and targeting SMEs as anchor tenants. “The traditional model of big-box retail is no longer viable in many urban centers,” said Propertybook analyst Tendai Mataranyika. “Landlords are pivoting to smaller, more agile tenants who can pay in forex or mobile money.”

In Harare’s CBD, formerly dominant retailers like Edgars and Jet have downsized, while previously vacant spaces are now occupied by boutiques, mobile phone shops, and fast-food outlets. In high-density suburbs such as Chitungwiza and Glen View, informal traders are converting residential garages and verandas into thriving tuck-shops and salons.

Rental rates have also adjusted. According to Propertybook, prime retail space in Harare’s CBD now averages US$15–20 per square metre, down from US$30 in 2020. In contrast, suburban strip malls and roadside stalls are commanding higher premiums due to foot traffic and lower overheads. “Retail is decentralizing,” said Mataranyika. “Consumers want convenience, and retailers are following them into the townships.”

The rise of digital commerce is also reshaping retail property demand. With more Zimbabweans shopping via WhatsApp, Facebook Marketplace, and e-commerce platforms like ZimexMall, some retailers are opting for warehousing and delivery hubs over traditional storefronts.

Developers are responding with mixed-use properties that combine retail, residential, and office space. Projects in areas like Madokero, Sunway City, and Ruwa are attracting both investors and tenants seeking affordability and flexibility. “Mixed-use developments are the future of urban retail,” said Rumbidzai Chikomo, a real estate consultant. “They offer lifestyle convenience and reduce operational risk.”

However, challenges remain. Power outages, currency instability, and limited access to long-term financing continue to weigh on investor confidence. The Zimbabwe Investment and Development Agency (ZIDA) has called for policy clarity and incentives to attract diaspora and foreign capital into the property sector.

Despite the hurdles, analysts say the retail property market is showing signs of resilience and innovation. With SMEs and informal traders now central to the economy, the sector is evolving to reflect Zimbabwe’s new commercial realities.