In every modern economy, there are three markets that shape national development, investment flows, and wealth creation.
These are the property market, the capital market, and the financial market.
Although these markets appear distinct — each with its own instruments, participants, and regulatory frameworks — they are all anchored by one indispensable function: valuation.
Valuation is the common denominator that underpins confidence, transparency, and decision-making across these interconnected systems.
Without credible, consistent, and professionally-executed valuations, the entire economic architecture becomes vulnerable to distortion, mispricing, and systemic risk.
This article explores why valuation is the silent engine of economic stability, how it links the three major markets, and why the profession is recognised as a critical pillar of national development.
In Zimbabwe’s evolving economic landscape, few professions play a central and far‑reaching role as valuation. Although often operating behind the scenes, valuation is the invisible infrastructure that supports the property market, anchors the financial system, and enables the functioning of capital markets.
It is the profession that determines how wealth is measured, how risk is priced, and how investment decisions are made. In a country where land, property, and infrastructure form the backbone of economic activity, valuation is not just a technical exercise — it is a national economic necessity.
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As Zimbabwe strengthens its regulatory frameworks, aligns with international standards, and seeks to attract both domestic and foreign investment, the importance of valuation as a critical profession has never been clearer.
Zimbabwe’s property market is diverse and complex, spanning urban land, commercial buildings, agricultural land, mining rights, industrial assets, residential and state‑owned property.
Every transaction in this market —whether a sale, lease, mortgage, compensation claim, or municipal rating — depends on a credible valuation. Property is also a unique asset class: heterogeneous, immovable, and deeply influenced by local conditions. Unlike commodities or equities, its value cannot be inferred from a central exchange. It must be professionally determined.
Valuers provide the essential functions that keep the property market transparent and functional through fair pricing that ensures buyers and sellers transact at market‑aligned values. For municipal revenue it supports consistent property taxation and rating systems.
As for land administration, it informs compensation for compulsory acquisition, resettlement, and infrastructure development.
For investment decisions, it guides developers, investors, and pension funds on feasibility and returns.
In emerging markets, where informal transactions and opaque pricing can undermine investor confidence, the role of valuers becomes even more critical. They bring order to a market that would otherwise be vulnerable to speculation, manipulation, and inefficiency.
In Zimbabwe, where land carries historical, political, and economic significance, valuation is also a tool for justice and equity. Compensation for improvements, land redistribution, and infrastructure expansion all rely on accurate and defensible valuations. Without this, disputes escalate, public trust erodes, and development slows.
Zimbabwe’s capital markets — particularly the Zimbabwe Stock Exchange, Victoria Falls Stock Exchange (VFEX), and the Real Estate Investment Trust (REIT) framework — depend heavily on valuation.
As the country expands its REIT ecosystem and encourages property‑backed investment vehicles, valuation becomes the mechanism that translates physical assets into financial instruments.
Valuation supports capital markets through Net Asset Value (NAV) calculations for listed property companies, pricing of REIT units and investor disclosures, portfolio valuation for pension funds and asset managers, and due diligence for mergers, acquisitions, and listings. Without valuation, the capital markets would lack the ability to price real estate backed securities accurately. This would undermine investor confidence and destabilise the broader investment ecosystem.
Zimbabwe’s pension funds — among the largest institutional investors — hold significant real estate portfolios. Their ability to meet long‑term obligations depends on accurate, timely, and internationally aligned valuations. As the country seeks to deepen capital markets and attract foreign capital through VFEX, valuation credibility becomes a competitive advantage.
The financial sector — banks, microfinance institutions, insurers, and credit providers — relies on valuation to manage risk. Real estate is the most common form of collateral in Zimbabwe, especially in an economy where tangible assets are often considered to hold more stability than currency.
Banks depend on valuation for loan‑to‑value ratios, collateral risk assessment, credit impairment and provisioning, capital adequacy compliance and foreclosure and recovery processes.
The Reserve Bank of Zimbabwe requires financial institutions to maintain prudent lending practices, and valuation is central to this. An inflated valuation exposes banks to losses; an understated valuation restricts credit flow and stifles economic activity. Accurate valuation is therefore a financial stability function.
The 2008 global financial crisis demonstrated how mispriced assets can destabilise entire economies. Zimbabwe’s own banking challenges in the early 2000s also highlighted the dangers of weak collateral management. Strengthened valuation practice is thus essential for safeguarding the financial system.
Zimbabwe has made significant strides in professionalising and regulating the valuation sector. The Valuers Council of Zimbabwe — established under the Valuers Act — serves as the statutory regulator responsible for registration of valuers and valuation firms, enforcement of ethical and professional standards, disciplinary oversight, continuous professional development and alignment with international standards.
Zimbabwe’s recent recognition by the International Valuation Standards Council marks a major milestone. It signals the country’s commitment to global best practice and positions Zimbabwean valuations to be trusted by international investors, lenders, and development partners.
The adoption of International Valuation Standards further strengthens consistency, transparency, comparability and professional accountability. This alignment is crucial as Zimbabwe integrates into global financial systems and seeks to attract foreign direct investment.
For its centrality, valuation has to continue being recognised, as its importance continues to rival that of auditors, engineers, and financial analysts. Valuation must therefore be elevated as a critical profession for the following reasons:
It underpins national development. Infrastructure projects, urban renewal, land reform, and compensation processes all depend on valuation. Without it, government cannot plan, budget, or allocate resources effectively.
It protects public interest as valuers ensure fairness in taxation, compensation, and public asset management. It reduces opportunities for corruption, manipulation, and mispricing.
It supports financial stability as banks rely on valuation to manage credit risk. Regulators depend on it to monitor systemic vulnerabilities.
It enables investment and economic growth as investors — local and international — require credible valuations to deploy capital with confidence. This is especially important for REITs, infrastructure funds, and VFEX‑listed entities.
Valuation is a specialised discipline requiring technical expertise, ethical conduct, and adherence to global standards. Recognising it as a critical profession ensures that practitioners are properly trained, regulated, and accountable.
It is indisputable that valuation is, indeed, the common denominator that binds Zimbabwe’s property, capital, and financial markets into a coherent economic system. It ensures transparency, protects public interest, enables investment, and safeguards financial stability.
Recognising valuation as a critical profession is not merely a matter of professional pride — it is an economic necessity.
As economies grow, diversify, and integrate into global markets, demand for credible valuation will only intensify.
Thus, the profession will have to continue to be strengthened, regulated, and elevated to the status befitting a cornerstone of national development, economic transformation and market confidence. A strong valuation profession is not just good for the sector, it is good for Zimbabwe.
Juru is chief executive officer at Integrated Properties.
