By Shelly Chamunogwa
As Zimbabwe grapples with inflation, currency volatility, unemployment, and stagnant economic growth, the property market has become a barometer of the country’s economic woes. The ongoing political impasse has further eroded investor confidence, leading to a surge in property sales.
Homeowners in Harare’s affluent suburbs, such as Borrowdale, Mt Pleasant, and Chisipite, are seeking US dollar payments as they offload their properties in a bid to secure a stable financial future. The demand for USD payments reflects the loss of faith in the Zimbabwean Gold “ZIG”, which has been ravaged by hyperinflation.
According to African news, Mazai a regional expert, “If you look at the property market in the Southern African region, Zimbabwe has the most expensive property in terms of value for money, the reason being there isn’t much financing coming into the property sector. People are self-financing, developers are self-financing.” He added, “Because of that, our development is limited, so you then have a matrix of supply and demand whereby the demand exceeds the supply. If there is a boom, the supply is not sufficient to meet the demand, so you find that the properties here are very expensive.”
The current economic situation has made it challenging for property owners to maintain their assets, with many struggling to afford basic amenities. Infrastructure and amenities, once a hallmark of these suburbs, are now in disarray, further diminishing property values.
Investor sentiment has also taken a hit, with many potential buyers adopting a wait-and-see approach. Government policies, intended to stabilize the economy, have had little impact on the property market, leading to a sense of uncertainty among stakeholders.
As a result, property prices have plummeted, and sales have slowed. Desperate sellers are now willing to negotiate, offering discounts and flexible payment terms to attract buyers. Despite the challenges, demand for prime real estate in Harare’s suburbs persists, driven by a desire for proximity to amenities, security, prestige, investment potential, and limited supply.
In this challenging environment, real estate agents and online platforms have emerged as crucial facilitators of property sales. They provide a vital link between buyers and sellers, offering valuable insights and expertise to navigate the complex market.
To overcome the challenge of US dollar payments, creative financing solutions are emerging. Seller financing, bartering, and alternative currencies like cryptocurrencies are being utilized to secure property sales.
As Zimbabwe’s economic situation continues to evolve, Harare’s property market is likely to experience significant changes. Innovative solutions and adaptability will be crucial in shaping the market’s future. One potential development is the increased adoption of alternative currencies and digital payment systems. As cryptocurrencies gain traction globally, they may become a more viable option for property transactions in Zimbabwe.
Another possible trend is the growth of affordable housing initiatives. As the government seeks to address the country’s housing shortage, public-private partnerships and innovative financing models may emerge to provide affordable housing options.
The rise of online platforms and digital marketplaces is also expected to continue, making it easier for buyers and sellers to connect and facilitating more efficient property transactions.
Furthermore, as the economic situation stabilizes, foreign investment in Zimbabwe’s property market may increase, bringing new opportunities for growth and development.
Ultimately, the future of Harare’s property market will depend on the ability of stakeholders to adapt to changing economic conditions and embrace innovative solutions. By doing so, they can unlock new opportunities for growth and development, even in the face of uncertainty.
Aliyah Goto, a Harare resident, recently sold her Borrowdale home for $1,420,000, a fraction of its original value. ‘I had no choice but to sell,’ she said. ‘The economic situation has made it impossible to maintain my property.’
The property market in Zimbabwe is a microcosm of the country’s economic struggles. As the situation continues to unfold, one thing is certain the property market will remain a key indicator of Zimbabwe’s economic health.”
