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Harare suburban office rentals surge
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Rental rates for office space in Harare's suburbs have jumped by 20% over the past year, as corporates accelerate their decade-long migration from the city's central business district (CBD), a new report by real estate firm Knight Frank has revealed.
The exodus is being driven by the dominance of informal traders in city centres, congestion, and a growing appetite for more accessible business environments. Companies are increasingly setting up operations in suburban nodes such as Newlands, Eastlea, Mt Pleasant, Milton Park, and Belvedere.
According to Knight Frank's Africa Offices Market Dashboard for the first half of 2025, suburban rentals now range between US$8 and US$10 per square metre per month, compared to US$5 to US$7 in the CBD.
"Harare's office market is undergoing a structural transformation as occupiers continue to migrate from the CBD to suburban nodes," the firm noted. "This decentralisation trend has driven year-on-year rental growth of approximately 20% in suburban locations."
The report highlighted that the repurposing of residential properties into small-sized office spaces has increased suburban supply, while older CBD stock is losing relevance.
For investors, suburban offices are delivering better returns, with yields averaging 9%, compared to 6% in the CBD, which also trails regional peers in Zambia, Mozambique, and South Africa.
However, Knight Frank warned that market fundamentals remain fragile. Persistent inflation, currency instability, and a heavy tilt towards US dollar transactions are complicating property valuations and limiting liquidity. High interest rates and restricted access to finance continue to suppress new developments and property deals.
The weak growth of the formal sector and regulatory unpredictability have further dampened demand for CBD offices. Vacancy rates in the CBD now average 40%, while Grade A suburban offices are enjoying strong demand with vacancies as low as 10%.
Zimbabwe's largest property website has also noted rising interest in short-term flexible rentals, such as serviced offices, co-working hubs, and shared office spaces, which are mainly concentrated in suburban areas.
The exodus is being driven by the dominance of informal traders in city centres, congestion, and a growing appetite for more accessible business environments. Companies are increasingly setting up operations in suburban nodes such as Newlands, Eastlea, Mt Pleasant, Milton Park, and Belvedere.
According to Knight Frank's Africa Offices Market Dashboard for the first half of 2025, suburban rentals now range between US$8 and US$10 per square metre per month, compared to US$5 to US$7 in the CBD.
"Harare's office market is undergoing a structural transformation as occupiers continue to migrate from the CBD to suburban nodes," the firm noted. "This decentralisation trend has driven year-on-year rental growth of approximately 20% in suburban locations."
For investors, suburban offices are delivering better returns, with yields averaging 9%, compared to 6% in the CBD, which also trails regional peers in Zambia, Mozambique, and South Africa.
However, Knight Frank warned that market fundamentals remain fragile. Persistent inflation, currency instability, and a heavy tilt towards US dollar transactions are complicating property valuations and limiting liquidity. High interest rates and restricted access to finance continue to suppress new developments and property deals.
The weak growth of the formal sector and regulatory unpredictability have further dampened demand for CBD offices. Vacancy rates in the CBD now average 40%, while Grade A suburban offices are enjoying strong demand with vacancies as low as 10%.
Zimbabwe's largest property website has also noted rising interest in short-term flexible rentals, such as serviced offices, co-working hubs, and shared office spaces, which are mainly concentrated in suburban areas.
Source - The Independent
