Zimbabwe property market characterised by a high demand and low supply
INTERNATIONAL - Even though the Zimbabwe property market faces many challenges, it has always been characterised by a high demand and a corresponding low supply.
Patience Patongamwoyo, Seeff Principal in Zimbabwe, said that 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.
Patongamwoyo, "After dollarisation (post 2009) the diaspora market suddenly crumbled as local properties became expensive in real terms. The high prices of property coupled with the liquidity crunch saw the market turn into a buyer`s market. 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".
South Africans, Mozambicans, Nigerians and Zambians to name a few have invested in Harare’s northern and western areas. These buyers are usually employed by United Nations or entities that are associated with other NGOs.
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 $25 000 (R353500).
“In medium density areas like Westlea, Waterfalls, Bloomingdale, New Marlborough etc., the entry level is approximately $80 000 (R1.31 million) for a two bedroom, apartment or basic house.
In low density areas such as Harare North the entry value is $130000 (R1.83 million) to acquire a two bedroom garden flat.
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 $120 (R1698.20) per square metre. 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.
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.
Rentals in medium density areas range between $300 (R4242) - $700 (R9898) USD per month, while rental prices in low density areas range between $700 (R259898) - $2500 (R35350) per month.
Smart Move opened their doors to the public in 2015 during the period the real estate industry was heavily affected by the economic meltdown. The company rebranded to Seeff Properties in November 2018.
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