Zambia’s property market is charging ahead, offering strong prospects in both residential and industrial sectors, according to Seeff Zambia. Rising demand is fuelled by a growing middle class and business expansion.
The market is buzzing with activity from a diverse mix of participants. Local professionals and the middle class are investing in serviced plots or buying apartments on the city’s outskirts, while returning Zambians and expatriates target secure developments in prime neighbourhoods. Businesses and SMEs drive demand for office space in both the CBD and new business hubs, while large corporations are investing in commercial, retail, and industrial properties.
Residential Market Momentum
Lusaka is seeing considerable momentum with middle-income neighbourhoods like Ibex Hill, Chalala, and Obama surging by 8%. The trend is towards integrated mixed-use developments, catering to convenience and reduced commuting, exemplified by areas like Roma Park.
The shift from farmland to serviced plots is accelerating in growing suburbs like Lilayi and Makeni. Modern apartments and townhouses are increasingly popular with young professionals and expatriates seeking secure, low-maintenance living. Buyers now favour secure, well-titled properties with good road access. Demand is high for gated estates and modern apartments offering reliable returns.
Properties priced between ZMW 850,000 and ZMW 1.5 million are particularly hot. Plots priced around ZMW 120,000 to ZMW 250,000 are popular in expansion zones like Silverest and Lilayi.
Vacant land in emerging hotspots like Ibex Hill, Lilayi, and New Kasama can range from $40,000 to $200,000+ depending on size and location, while prime area houses in upscale residential areas like Kabulonga, Leopards Hill, Roma, and Sunningdale can start from $250,000 upwards for sale.
The residential rental market is vibrant. Zambia’s millennials are opting to rent close to work in areas like Woodlands, Mass Media, and Kabulonga instead of rushing to own homes. Two-bedroom units are typically going for ZMW 5,000 to ZMW 8,000.
Flats offer a 7.5% yield, outperforming houses at 5.2%. Prime residential areas like Kabulonga, Leopards Hill, and Roma see 3 or 4-bedroom houses renting for $2,000 to $4,000+ per month.
Commercial and Industrial Expansion
Zambia’s warehouse scene is booming, with Makeni, Chinika, and Lusaka West transforming into investment magnets for logistics and agriculture-based businesses. Lease rates for prime warehousing have been steady at around $4-5 per square meter.
While commercial office space in Lusaka’s CBD still lags with an 18% vacancy rate as older buildings struggle to modernise, the historical oversupply in the commercial office market is gradually reducing.
Recent data indicates a steady rise in take-up, particularly in prime business nodes like the Addis Ababa roundabout, where average monthly prime office rents remain stable at around $18 per square meter.
Retail landscapes are evolving, with shopping malls focusing on tenant mix and consumer experiences, and national infrastructure projects opening opportunities for neighbourhood malls. Retail lease rates are often US dollar-denominated and vary, with malls in established areas commanding higher rates.
Future Outlook
Key market drivers include increased interest from foreign buyers with cash to inject, streamlined mortgage processes by local banks and stable rates, and government incentives such as tax breaks in economic zones - all supported by economic growth and urbanisation that fuel demand across Zambia’s real estate sector.
Overall, Lusaka's real estate market is set to keep growing, fuelled by urbanisation and economic progress. Infrastructure projects are shaping property values and opening up new areas, while efforts to reduce the housing deficit are driving more formal developments targeting middle and lower-income buyers.
Nonetheless, challenges remain. Rising construction costs, legal uncertainties with property titles, and affordability issues can hinder buyers, while sellers see the fastest deals with realistic pricing and clear paperwork. Landlords and tenants still face common issues such as repair disputes and payment delays, reflecting ongoing friction in the rental market.
On the upside, with the rise of Fintech and Proptech, the sector is set to gain efficiency and transparency, along with a growing focus on sustainability and green spaces. The introduction of REITs could attract more investors and improve market liquidity. These evolving trends highlight important opportunities for both local and foreign investors in Lusaka’s expanding real estate market.
Seeff Zambia
Seeff Zambia, with offices in Lusaka and Kitwe, is a leading real estate agency offering sales, lettings, valuations, and property management across all types of properties, drawing on decades of experience as part of the renowned Seeff Property Group in Southern Africa.
For more information, visit Seeff Zambia at https://www.seeff.co.zm/
