As we move toward the end of 2025, the Zambian property market is showing clear patterns that will shape opportunities and challenges in 2026. Here’s a concise, client-friendly look at the trends, risks, and opportunities you need to know about.
📈 Key Trends That Defined 2025
1. Infrastructure Growth Driving Demand
Major national investments in roads, utilities, and power have boosted activity in residential and commercial markets. Areas near improving infrastructure continue to see the strongest price growth and rental resilience.
2. Construction Costs Remain Elevated
Inflation and the cost of materials have kept building expensive. This is pushing many buyers toward completed homes rather than new builds, and it has slowed some development projects.
3. Mortgage Access Still a Challenge
High interest rates and strict collateral requirements mean many buyers are still relying on self-financing. This keeps demand strong for affordable, smaller properties and rent-to-buy options.
4. Increased Focus on Title and Compliance
Buyers and tenants are more cautious. Properties with clear title, proper documentation, and professional representation move faster and command better value.
5. Green & Solar Properties Gaining Popularity
With persistent energy concerns, homes and offices with solar or backup systems continue to attract premium interest.
📊 What the 2026 Budget Signals for the Property Market
1. Stronger Revenue Mobilisation (Including Property Taxes)
The budget prioritises domestic revenue generation. This includes:
- Tighter rules around Property Transfer Tax (PTT), especially for share transfers.
- More transparency requirements for property-owning companies.
This may increase compliance costs but also strengthens the formal market.
2. Big Push for Renewable Energy
Government plans to bring 1,500 MW solar and 300 MW thermal online.
This may unlock new development areas that previously struggled with unreliable electricity, increasing the value of peri-urban and rural property.
3. Expanded Public Works & Construction Spend
Infrastructure upgrades, rural development, and public facility improvements continue into 2026. These projects typically stimulate housing demand — particularly rentals and serviced plots.
4. Tax Relief for Small-Scale Landlords
Increased exempt thresholds in rental income tax will ease pressure on smaller landlords. This could:
- Support lower or stable rental rates in certain price brackets
- Encourage legalisation of more rental units
- Improve cash flow for private landlords
5. Economic Risks Still Present
Some analysts warn that domestic borrowing targets are ambitious. If revenue projections fall short, this could tighten liquidity or slow development.
Nonetheless, if reforms hold, the medium-term outlook remains positive.
🔎 What This Means for Property Stakeholders
For Sellers
Demand is likely to remain strong near infrastructure upgrades. Document-ready properties will sell fastest.
For Buyers
2026 presents opportunities in emerging corridors — especially where renewable energy access is improving.
For Landlords
The revised tax thresholds may improve net rental income for many properties, particularly in the mid- to lower-range segments.
For Tenants
More supply in key areas may help stabilise rents, though demand in Lusaka’s prime areas is expected to stay strong.
💬 Final Word from Property Partners
We continue to analyse the evolving landscape closely. Whether you’re planning to buy, sell, rent, or invest in 2026, the right positioning — and correct documentation — will be essential.
Whether you're buying, selling or renting, Property Partners is here to help you navigate Zambia’s evolving real estate market with clear guidance, ethical practice and up-to-date insights.
For assistance with listings, market positioning, due-diligence support or help securing the right tenant or buyer, reach out to our team anytime.
