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Even though the Zimbabwe property market faces many challenges, it has always been characterized by a high demand and a corresponding low supply – ensuring that the market has always been very active. Patience Patongamwoyo, Seeff’s Principal in Zimbabwe, says in the pre-dollarisation era (before 2009) the main buyers of real estate property in Zimbabwe were those in the diaspora and a few locals who had access to the USD (United States Dollar) as the local properties had become relatively cheap in real terms.
With the advent of the new administration there are however great expectations to address the economic decline that should lead to normalisation of the market into a sellers’ market”. Patongamwoyo continues that February 2019 saw the introduction of the RTGS $ which official rate to the USD was pegged at 2.5 (it has since weakened to 3.0120).
“There has been a lot of resistance from sellers all preferring to sell in USD. Many conditional sales have been concluded by attorneys and since most banks are only offering RTGS dollars this has reduced the numbers of buyers on the market to only those who still have USD”. Patongamwoyo says despite this they are hopeful that once the market gains confidence in the RTGS and the correct market exchange rate is determined they will see sellers accepting mortgage bonds and the market will normalise. “People from other countries on the African continent have always invested in Zimbabwe as the market is active, well-regulated, offers a fair return on investment and has the potential to improve. Title deeds can also be used to secure mortgages from financial institutions.
In the past three years we have also seen residential, industrial and commercial investment from the Chinese business people due to the Government`s look-east policy”. Patongamwoyo says in high density areas, such as Highfield, Budiriro, Kambuzuma etc. the entry level price for a small property basic four roomed core house is approximately US$25 000.00.
The most expensive area is the Borrowdale Brooke which is a security estate that offers extras like a golf course and 24 hour security. Here vacant land can cost as much as USD $120 per square meter. In terms of apartments and complexes the most expensive areas would be Avondale, Newlands and Belgravia areas. Like in the case of South Africa there is a high demand for security estates in Zimbabwe. These estates are mostly located in the Harare North area, but some are also being developed in medium to low density areas where there is access to municipal sewer connection.
Many banks like FBC, Stanbic, CBZ etc. are investing in land and constructing security estates to let or sell due to high demand. Demand for commercial properties is anticipated to increase as the economy slowly begins to stabilise and starts to pull out of the recession which has been ongoing for the past 20 years”. Patongamwoyo says recent sales that their branch has made include land in Tynwald for clusters developments and commercial use. She adds that there also lies great investment opportunity in University towns. “University student accommodation has been in short supply with property owners close to these institutions constructing boarding houses accommodation for three students per room at US$100.00 per head per month. These exorbitant charges prove that there is a grave shortage therefore creating a great investment opportunity in University towns for investors”.
Patongamwoyo concludes that there are also buy to let opportunities available mainly in the medium to low density areas, but it is mostly financial houses that are buying finished complexes or buying land and constructing complexes themselves and then letting them out. “Demand for accommodation is very high within the medium to low density range being more appealing as the economic decline has not affected this group of middle and senior managers.
