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Zimbabwe is poised to introduce its first US dollar-denominated real estate investment trust (REIT), marking a significant step in the country’s evolving property market as investors seek stable assets amid economic uncertainty.

Eagle REIT will list on Zimbabwe’s Victoria Falls Exchange (VFEX) this Friday, with plans to raise $62 million, according to Bevin Ngara, Managing Director of Fidelity Life Asset Management Co., the fund manager behind the property initiative.

The REIT has already secured $24.5 million through a private placement, with funds earmarked for developments in Victoria Falls and Mazowe, according to the pre-listing statement.

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VFEX was chosen over Zimbabwe’s local currency exchange in Harare, due to the greater ease in showcasing “value creation” in US dollars, Ngara explained.

Institutional investors have increasingly turned to property stocks as a hedge against inflation and currency volatility, particularly as Zimbabwe debuted the gold-backed ZiG in 2024—its sixth attempt at a functioning local currency since 2009.

According to the Securities and Exchange Commission of Zimbabwe, investment in property rose to 47% in the final quarter of 2024, up from 43.6% in the previous three months.

Ngara stated that REITs have become more popular than traditional investment vehicles such as direct property ownership, listed equities, and the money market, citing their ease of trade and reliable dividend payouts.

“Institutional investors are more concerned about consistent dividend payments than capital gains. REITs guarantee regular dividends,” Ngara said.

Lloyd Mlotshwa, Head of Research at IH Securities, echoed this view, noting that REITs allow investors to benefit from property earnings without needing to manage physical assets directly.

The success of Dubai’s Residential REIT, which saw demand for all available units within minutes, reflects the global appeal of REIT investments.

VFEX Chief Executive Justin Bgoni hinted at another REIT listing in the near future, though he did not provide specifics.

The Tigere REIT, listed in 2022, has been instrumental in driving investor interest in property securities. It is set to pay its 10th dividend to unit holders this month, underscoring continued market confidence in the sector.

Tigere’s latest trading update reaffirmed property as the preferred investment option for Zimbabweans seeking protection from currency instability, citing ongoing demand in warehousing, affordable housing, retail infrastructure, and office space.

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