Companies abandon Harare CBD

A growing number of major corporates are relocating from Harare's central business district (CBD), signalling what property analysts describe as a "clear structural shift" in Zimbabwe's commercial real estate market.

The trend is being driven by ageing infrastructure, worsening traffic congestion, parking shortages, rising operational costs, deteriorating utilities and increasing informality within the CBD.

According to property consultancy Knight Frank, vacancy rates in parts of the CBD have climbed to nearly 60%, as companies migrate to suburban office parks offering improved security, reliable services and modern flexible workspaces.

"Harare's office market has recorded the delivery of approximately 12 000 sqm of new Grade A space, predominantly concentrated along the Borrowdale development corridor… A clear structural shift is underway," the firm said in its Africa Report 2026–27.

Popular relocation nodes include Borrowdale, Avondale, Eastlea, Milton Park and Belvedere, where demand for modern Grade A office space continues to grow.

Suburban offices are now commanding net rents of over US$10 per square metre per month under triple-net lease structures, compared to around US$5 per square metre in the CBD, reflecting weakening demand for older stock.

Despite limited new speculative development due to high construction costs and reliance on imported materials, investor appetite remains strong for well-located modern assets.

Property firm Mashonaland Holdings Limited noted that rental yields remain attractive at between 8% and 10%, while demand is increasingly shifting toward decentralised suburban and peri-urban developments.

"Demand continues to shift towards decentralised suburban and peri-urban developments, with increased uptake of cluster housing and serviced stands," the company said in its latest trading update.

Similarly, First Mutual Properties reported mixed performance in the commercial sector, citing strong demand for modern space but continued pressure on older CBD buildings.

"In light of this, property owners have continued to repurpose old buildings to cater to small and medium-sized enterprises and start-ups that require small workspaces," the company said.

The firm added that SMEs are increasingly filling gaps left by large corporates exiting the CBD.

Meanwhile, Eagle Asset Management, which manages the Eagle Real Estate Investment Trust, said demand for US dollar-denominated income streams continues to support investment in quality commercial and residential developments, particularly in suburban nodes and tourism-driven corridors such as Victoria Falls.

Analysts say the combined effect of corporate migration, infrastructure strain and shifting investor preferences is reshaping Zimbabwe's urban commercial landscape, with the CBD increasingly losing ground to decentralised business districts.