The 2026 National Budget, presented by Finance Minister Dr. Situmbeko Musokotwane, operates under the theme “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia”. For real estate professionals, investors, and homeowners in Zambia, this budget signals a shift from recovery to growth, with specific measures aimed at lowering barriers to entry for small landlords and incentivizing large-scale infrastructure development.
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Here is an analysis of how the 2026 budget impacts the Zambian real estate market.

1.⁠ ⁠Tax Relief for Small Landlords
One of the most direct benefits for the real estate sector is the adjustment to the Rental Income Tax.

Threshold Increase: The tax-exempt threshold for rental income has been increased from K12,000 to K30,000 per annum (or K1,000 to K2,500 per month).
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Impact: This change effectively removes the tax burden for many small-scale property owners and emerging landlords (“side-hustle” investors) with entry-level rental units. It encourages formalization of rental agreements, as the fear of immediate taxation on low-tier income is removed.

2.⁠ ⁠Ease of Doing Business for Developers
The budget introduces smoother operational mechanisms for businesses, which directly aids construction and property management firms.

Turnover Tax Reform: The penalty for overdue Turnover Tax has been drastically reduced from 5.0% to 0.5% per month, significantly lowering the risk for small construction firms and contractors facing cash flow delays.
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VAT Registration: The turnover threshold has been increased to K5 million, allowing more businesses to voluntarily register for VAT. This is crucial for developers who need to claim back input VAT on construction materials, which was previously difficult for smaller entities.
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Property Transfer Tax (PTT) Clarity: The budget closes loopholes regarding the surrender or forfeiture of shares to avoid PTT, while extending relief for legitimate group reorganizations (where companies have been part of a group for 3+ years). This provides regulatory certainty for large real estate holding companies restructuring their assets.
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3.⁠ ⁠Infrastructure: The Road to New Property Hotspots
Real estate value is inextricably linked to accessibility. The 2026 budget allocates significant resources to road projects that will likely create new prime real estate corridors.

Key Road Projects: The government has committed to commencing or continuing work on strategic routes, including the Mufulira-Mokambo-Mansa Road, Chipata-Lundazi Road, and the Livingstone-Kazungula-Sesheke Road.
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The “Link” Effect: These upgrades are not just tarmac; they open up peri-urban areas to residential development and boost the value of industrial land along logistics corridors. The focus on Public-Private Partnerships (PPPs), with over $1.7 billion already signed in agreements, ensures these projects have viable funding models beyond just treasury allocations.
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4.⁠ ⁠Tackling the Housing Deficit
The government is moving beyond policy statements to actual construction, addressing the critical shortage of affordable housing.

NHA & OGOS Partnership: A landmark project involving the National Housing Authority (NHA) and OGOS Zambia will construct 10,000 housing units. Phase one, consisting of 2,000 units, is scheduled to begin in March 2026.
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Infrastructure Inclusion: Unlike past projects that sometimes lacked utilities, this initiative explicitly budgets for water systems, roads, and electricity supply within the developments, ensuring immediate habitability and value retention.
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5.⁠ ⁠Energy Stability and Green Growth
Reliable energy is the backbone of commercial real estate. The budget addresses this through a diversified energy mix and green financing.

Electricity Fund: A dedicated fund has been established to secure a stable power supply, crucial for reducing the operational costs of malls, office parks, and industrial hubs that have heavily relied on expensive diesel generators.
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Green Financing: With $150.2 million already raised through green bonds for solar projects (like the Riverside and Itimpi plants), there is growing liquidity for green building projects. The shift towards solar and thermal energy aims to decouple the property sector’s energy security from drought-prone hydro sources.