Harare and Bulawayo’s Central Business Districts (CBDs) are grappling with a dramatic flight of commercial tenants, as vacancy rates surge to 60% and 40%, respectively, according to a recent Knight Frank sectoral analysis.
The report paints a stark picture of urban decline, with businesses abandoning traditional downtown hubs in favour of suburban alternatives.
This mass relocation stems from compounding pressures, including deteriorating infrastructure, rising security risks, and prohibitive operational costs.
The exodus has been accelerated by a 13% spike in CBD crime between 2023 and 2024, as documented by the Safeguard Crime Report.
Safety concerns are compounded by aging office buildings plagued by poor maintenance, leaving tenants disillusioned with the urban core.
Meanwhile, practical frustrations mount—parking costs in Harare’s CBD now average $1 per hour, while suburban offices offer free parking, a decisive perk for employees and clients alike.
Traffic congestion has further eroded the appeal of CBD locations, notes Knight Frank, Harare’s gridlock has worsened by 30% in recent years, sapping productivity and morale.
Yet the financial burden remains the clearest deterrent: though suburban rents command a premium at $10 per square meter, businesses increasingly view this as a worthwhile trade-off to escape the CBD’s hidden costs, from parking fees to time lost in transit.
The banking sector exemplifies this shift. All major Harare-based banks have either relocated or are constructing new headquarters in northern suburbs like Borrowdale and Newlands, drawn by safer environments and modern facilities.
Similarly, 30% of Bulawayo’s CBD tenants have moved to areas such as Khumalo since 2020.
Yet the trend also presents opportunities. Suburban hubs are evolving into dynamic commercial nodes, with developers racing to meet demand for integrated office parks.
For Zimbabwe’s real estate market, this redistribution may mark a permanent redefinition of where—and how—business gets done.
