Zimbabwe’s economic development journey has revealed a critical intersection between the real estate and banking sectors.
These two industries, though distinct in their mandates, are deeply interconnected. Real estate provides the tangible assets that underpin financial stability, while banking supplies the capital and governance frameworks that enable property development.
At this intersection lies both opportunity and risk, and the role of professionals — particularly valuers — is central to ensuring that the relationship between the two sectors is complementary rather than corrosive.
Real estate is more than bricks and mortar; it is the backbone of collateral in banking. Property assets form the basis of loan security, enabling banks to extend credit with confidence. Without real estate, the banking sector would struggle to manage risk, as property provides a tangible, enduring store of value. This symbiotic relationship underscores the importance of the real estate sector in financial stability.
Yet real estate is not static. It evolves with urbanisation, demographic shifts, and technological innovation. Banks, therefore, must engage with the sector not only as financiers but as partners in shaping sustainable development. This requires a deep appreciation of the technical expertise that underpins property markets.
Conversely, banking is the lifeblood of real estate development. Property projects — whether residential, commercial, or industrial — require significant capital investment. Banks provide this capital, enabling developers to transform land into productive assets. Through lending, banks catalyse growth, stimulate construction, and drive urban expansion.
However, the banking sector’s role must extend beyond financing. By integrating risk management, governance, and sustainability principles into lending practices, banks can shape the quality and direction of real estate development. This is where the intersection becomes transformative: banking does not merely enable real estate; it influences its trajectory.
At the heart of this intersection are professionals, whose expertise ensures integrity, transparency, and quality. Valuers, in particular, play a pivotal role. Their assessments determine the value of property assets, underpinning loan decisions and investment strategies. Independence in valuation is essential to maintaining trust in both the banking and real estate sectors.
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When valuers operate within consultancy firms, their independence is safeguarded, ensuring that property values reflect market realities rather than institutional interests. However, when banks employ valuers directly, conflicts of interest may arise. The credibility of loan governance processes depends on the impartiality of valuation, and any erosion of independence threatens systemic stability.
Beyond valuers, other professionals — engineers, architects, and quantity surveyors — contribute to the integrity of property development. Their expertise ensures that projects are structurally sound, financially viable, and aligned with regulatory standards. Together, these professions form the consultancy ecosystem that bridges banking and real estate.
The intersection of banking and real estate offers opportunities for synergy. When the two sectors collaborate effectively, they can drive sustainable growth, innovation, and resilience. Key complementarities include:
- Risk management and transparency: Independent valuation ensures that banks lend against accurate property values, reducing systemic risk;
- Capital and creativity: Banks provide financing, while consultancy firms contribute innovation in design, engineering, and project management; and
- Governance and sustainability: Banking regulations can embed ESG principles into lending, encouraging real estate projects that are environmentally responsible and socially inclusive.
Market development
Collaboration between banks and real estate professionals can expand access to housing, commercial spaces, and infrastructure, supporting national development goals.
Despite these complementarities, challenges persist. The absorption of technical expertise into banks risks stifling innovation and eroding independence. Consultancy firms face reduced workloads, weakening the diversity of voices in the sector. Meanwhile, the central bank’s silence on the independence of valuation raises concerns about regulatory oversight.
Reduced lending for property development projects further compounds these challenges. Banks, prioritising internal projects and risk-averse strategies, may inadvertently slow the pace of urban growth and innovation. Without corrective measures, the intersection of banking and real estate could become a site of imbalance rather than synergy.
To unlock the full potential of the intersection between banking and real estate, Zimbabwe must pursue a balanced framework that preserves independence, fosters innovation, and strengthens collaboration. Key steps include:
- Regulatory safeguards: The central bank must establish clear guidelines to preserve independence in valuation and protect the integrity of regulated professions;
- Partnership models: Banks should collaborate with consultancy firms rather than absorb them, ensuring that technical expertise remains diverse and independent;
- Professional empowerment: Valuers and other professionals must advocate for their independence, resisting commoditisation within banking structures; and
- Innovation incentives: Government and industry bodies should incentivise innovation in real estate consultancy, ensuring that independent firms remain competitive and relevant.
The intersection of real estate and banking is not merely a technical matter — it is a strategic one. The integrity of valuation, the creativity of architecture, the precision of engineering, and the accountability of quantity surveying are pillars of sustainable development. Banks, as custodians of capital, must recognise that their strength lies not in absorbing these professions but in collaborating with them.
Zimbabwe’s future depends on building trust at this intersection. By fostering complementarities between banking and real estate, preserving independence in valuation, and empowering professionals, the nation can unlock sustainable growth. The choice is clear: embrace a balanced, collaborative framework that strengthens both sectors, or risk eroding the foundations of economic progress.
- Juru is chief executive officer at Integrated Properties.
