Mashonaland Holdings Limited delivered revenue growth of 13% and an 8% rise in profit after tax for the year ended 31 December 2025, supported by improved occupancies, project disposals, and a modest capital gain on its investment property portfolio, despite a constrained macroeconomic environment.
In her statement accompanying the Group’s audited 2025 financial results, the Chairperson, Engineer Grace Bema said she was pleased to present the performance amid a year defined by tight monetary policy and evolving market dynamics.
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Book NowDuring 2025, the Reserve Bank of Zimbabwe maintained a tight monetary policy stance, curtailing money supply growth to align with economic fundamentals. The approach helped moderate inflationary pressures and improved exchange rate stability. Looking ahead, domestic policy changes, including anticipated currency reforms and a rising tax burden on consumers and businesses, are expected to pressure disposable incomes and economic activity. Global uncertainties from ongoing geopolitical tensions, notably the US-Iran and Russia-Ukraine conflicts, continue to pose risks to international trade and the cost of doing business.
Notwithstanding these headwinds, the Ministry of Finance and Economic Development forecasts economic growth of 5% in 2026, underpinned by a recovery in agricultural output and strengthening international commodity prices, particularly in metals. The Chairperson noted that this positive outlook is anticipated to have a supportive spillover effect on the property market, presenting selective opportunities for growth and investment.
Zimbabwe’s property market presented a mixed outlook in 2025. While performance diverged across asset classes and locations, the overall picture reflected resilience.
The residential and select commercial sectors recorded positive momentum, driven by rapid urbanisation, sustained investor interest, and Government initiatives to improve housing delivery. However, supporting infrastructure has not kept pace with new residential projects, perpetuating deficits and prompting increased regulatory oversight by the Ministry of Local Government and Public Works on land use and zoning approvals.
In contrast, the central business district office sector remained subdued. Reduced demand, driven by changing business models and cost pressures, continued to erode rental yields within the CBD office segment.
The market operated within a constrained macroeconomic environment marked by limited liquidity and high borrowing costs, keeping property development and mortgage activity subdued. The medium- to long-term trajectory will depend on macroeconomic stabilisation, improved access to capital, and coordinated infrastructure development.
The Group achieved revenue growth of 13%, from US$7.2 million in 2024 to US$8.1 million in 2025. Growth was supported by project revenue from the disposal of serviced Greendale residential stands delivered to customers during the year.
Rental income increased 12.6% to US$6.3 million from US$5.6 million, supported by higher occupancy in the second half, particularly at the Pomona Commercial Centre and across the portfolio. Operating profit grew marginally by 3%, reflecting higher expenses incurred to prepare properties for new lettings concluded toward year-end.
Portfolio occupancy edged up to 89% from 88%. The Group maintained stable occupancy across most asset classes, with industrial, retail, residential, and specialised properties achieving near full occupancy. The CBD office portfolio remained under pressure due to evolving workspace trends, decentralization of commercial activity, and subdued demand for older office stock. Occupancy improved on the back of strong tenant retention, proactive leasing initiatives, and continued tenant engagement.
Debt collection efficiency improved to 92% from 90% in 2024, supported by enhanced credit control processes and proactive tenant engagement.
The Group recorded a 3% capital gain on investment property, represented by a US$2.2 million fair value gain. Finance costs were US$919,264, tied to medium-term borrowings used to finance capital development projects. Profit after tax rose 8% to US$4 million from US$3.7 million, supported by revenue growth and the 3% capital gain.
An open market valuation at 31 December 2025 placed the investment property portfolio at US$94.7 million, up from US$91.6 million in 2024. Growth reflected the 3% capital gain and US$1.2 million in new investment. Uplifts were largely on the Group’s landbanks and the Pomona Commercial Centre.
Pomona Commercial Centre:
Construction was completed in December 2024. The anchor tenant did not take up occupation as contracted under the Agreement to Develop and Lease. The Group has since secured 60% occupancy and has a leasing pipeline in place to achieve full occupancy in 2026.
Greendale Avenue Cluster Residential Stands:
The project was completed and stands were handed over to customers with approved housing plans during the year, after servicing works finished in August 2025.
126 Coronation Avenue Greendale Apartments:
The Group acquired residential land in Greendale, Harare, earmarked for 30 upmarket apartments. All statutory approvals are secured, with development planned to commence in Q1 2026.
Shurugwi Residential Stands:
In Q4 2025, the Group agreed to purchase a 26.7ha landbank for 445 medium-density residential stands, 5km northwest of Shurugwi town. Planning is set for Q1 2026. Chiyedza House SME Centre: The Group expanded its SME offering at Chiyedza House. The facility now comprises 90 self-contained, fully furnished offices and more than 40 retail shops on the ground and mezzanine floors. The facility has been well received, with average occupancies above 90%.
Zimbabwe’s economy is projected to sustain positive momentum in 2026, supported by agricultural and mining output. The property market is forecast to grow by up to 5% in 2026.
Going forward, Mashonaland Holdings plans to leverage opportunities in the housing market while repositioning CBD properties to meet evolving preferences. The Group also plans to enhance tenant experience and portfolio occupancy by upgrading building equipment and service delivery.
