Mashonaland Holdings reported an eight percent increase in revenue for the quarter ended 31 March 2026, as stronger rental income, improved occupancy levels and new tenant acquisitions lifted performance.
The property investment and development group posted revenue of US$1,86 million, up from US$1,73 million recorded in the same period last year, while operating profit rose 20 percent to US$879 222.
In a trading update, company secretary Egnes Madhaka said the business benefited from favourable conditions in Zimbabwe’s property market, where demand for income-generating assets remained firm.
“Rental yields remained attractive, averaging between eight percent and 10 percent in targeted sectors, reinforcing property’s position as a preferred asset class for income generation and capital preservation,” Madhaka said.
The update reflects continued investor appetite for property assets as a hedge against economic uncertainty, with buyers increasingly favouring developments that offer stable utility infrastructure and long-term income potential.
Madhaka said market demand is increasingly shifting toward cluster housing developments and serviced residential stands, particularly in areas with dependable water supply and solar-backed infrastructure.
According to the group, property values in selected prime and emerging suburban markets continued to strengthen, supported by sustained demand from both domestic investors and Zimbabweans in the diaspora.
Portfolio occupancy improved to 89 percent during the quarter following new lettings at Pomona Commercial Centre and the expanded Chiyedza House SME Centre.
Collections remained stable at 92 percent, indicating consistent tenant performance as the company optimised available space and secured additional occupants.
“This increase was supported by revenue growth and cost containment measures implemented during the period,” Madhaka said in reference to the rise in operating profit.
The group said development activity across Zimbabwe’s property sector continued to gather pace, driven by efforts from private developers and financial institutions to help address the country’s housing shortage.
However, infrastructure constraints remain a major challenge, with many developments concentrated in locations that already have established services or where developers can independently fund utilities.
“Infrastructure gaps therefore persist, resulting in increased reliance on self-funded solutions such as boreholes, solar systems, and private sewerage infrastructure, with corresponding implications for development costs,” Madhaka said.