Published: 12 November 2025

Property developers have raised alarm over high taxes, levies, and regulatory fees that they say now consume more than a quarter of total project costs, stifling investment and locking out smaller players from the sector.

With property increasingly viewed as a safe hedge against inflation and currency volatility, demand for both residential and retail developments has surged. However, industry players say excessive charges by local authorities and regulatory agencies are undermining growth.

Property Developers Association of Zimbabwe interim chairperson Arnold Khanda told NewsDay Business that the costs attached to permits, approvals, and compliance had reached unsustainable levels.

"To put in the sewer and the water, the council makes you pay to dig alongside the road, and don't you dare try crossing the road. The fees would kill an elephant," he said.
"Levies and permits can take up 25% or more of total project costs, which is ridiculously high and creates a big barrier to entry for small developers."

Khanda likened the situation to "a pig on a spit," saying authorities and regulators were each taking a slice out of developers through a maze of fees and taxes.

He noted that a typical cluster home application now attracts around US$5 000 in application fees, a sharp increase from US$250 previously, before other professional fees for architects, surveyors, and planners are even factored in.

Once approvals are granted, Khanda said, developers must pay additional costs for water, sewer, and driveway design approvals, infrastructure which will later be handed over to the local authority.

"That would be around US$15 000. After getting this approval, there is an endowment fee of around 10% payable to the city," he said.
"The city now insists on an Environmental Impact Assessment (EIA) where you must get comments from stakeholders such as Zesa, Zinwa, and others - each charging around US$1 500."

In addition, the Environmental Management Agency (EMA) reportedly charges 2% of the total project cost as part of the EIA process.

Plan approval fees for a medium-sized development can reach US$20 000, according to Khanda, who warned that the cumulative effect of these costs is stalling projects and discouraging new investment.

Developers have joined other business sectors in calling on government to streamline regulatory fees and taxes, arguing that the current system is cumbersome and discouraging to investors.

"Millions may pass through a developer, but with the high taxes and levies, the cost of materials and financing models, plus the fluctuations in basic commodities like cement, project delays become inevitable," Khanda said.
"You might appear to run a million-dollar company, but in reality, there's little liquidity - the money is always tied up in the next development."

Government has previously indicated that it is reviewing the cost structure of regulatory compliance to reduce barriers to business and promote investment in the construction sector, which is seen as a key driver of job creation and infrastructure growth.
- NewsDay

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