Zambia’s Construction Sector Gears Up Again in 2025
Zambia’s housing market in 2025 is showing strong growth momentum, driven by rapid urbanization, infrastructure expansion and rising demand for both affordable and mid-range housing.
Government investment in key infrastructure projects such as road networks, energy supply facilities and water systems is opening up new residential zones and stimulating real estate development, particularly in and around Lusaka, the Copperbelt and North-Western provinces, including other growing towns.
A significant trend is the growing number of Zambians opting to purchase land and build gradually due to limited access to affordable mortgage financing.
High interest rates, often ranging between 16% and 30%, combined with the recent increase in property transfer tax from 5% to 8%, have made formal property purchases more expensive for the average citizen.
As a result, the self-build model is becoming more practical and widespread, particularly among the middle-income segment.
Popular residential areas such as Ibex Hill, Chalala, Silverest and parts of Roma are witnessing increased construction activity, driven by both private developers and individual builders.
Meanwhile, affordable housing projects are slowly expanding into peri-urban zones like Chilanga, Lilayi, Chongwe and some areas on the Copperbelt, although these still face notable infrastructure gaps.
Investor interest is also growing in non-residential segments including student accommodation, warehousing and mixed-use commercial housing facilities. This reflects Zambia’s strategic regional position and the expanding needs of its education and logistics sectors.
While the outlook remains positive, the sector requires stronger policy support to improve access to housing finance, reduce construction costs, especially for imported materials, and enhance urban planning frameworks.
If these areas are addressed with the right policy interventions and infrastructure, Zambia’s housing market could emerge as one of the most dynamic in the region over the next decade.
