Are property prices in Zimbabwe too high and ready to crash? Not likely — at least not while demand is still running ahead of supply, according to property players.
A snapshot from Knight Frank shows how the market is shaping up: homes in high-density areas are selling for between US$60,000 and US$80,000, mid-tier properties go for US$120,000 to US$250,000, and luxury homes are upwards of US$500,000. In fast-expanding Pomona, some properties are now being listed for as much as US$600,000, as homeowners convert residential spaces into commercial use, says Property Book. Meanwhile, in Bulawayo, prices are around 15–20% lower than in Harare.
So, are prices overheating? Are we due for a sharp correction?
Not according to Tigere Property Fund, which owns Highland Park and will shortly include the new Greenfields complex.
“We opine that concerns of widespread price ‘overheating’ within the sector are overstated, with pervasive supply-side gaps noted in key sub-segments such as warehousing, affordable housing, quality retail infrastructure and office space,” Tigere says.
Tigere also believes real estate remains the go-to for investors trying to protect their money from Zimbabwe’s currency volatility.
“We expect continued interest from individuals, companies and pension funds looking for solid, long-term value,” the fund says.
And the numbers back that up. The Securities and Exchange Commission of Zimbabwe reports that the share of real estate in investment fund portfolios rose to 47% in the last quarter of 2024, up from 43.6% the previous quarter. The Insurance and Pensions Commission (IPEC) says pension funds continue to favour property over most other asset classes.
For First Mutual Properties, which just built a new office complex at Arundel, demand is strongest in tourism, high-end residential and mixed-use developments. But the company warns that rising construction costs and limited access to finance could slow things down.
“High construction costs and limited financing options remain key challenges. Public-private partnerships that leverage private sector expertise for large-scale projects are key to the sustainable development of Zimbabwe’s property sector,” says First Mutual Properties.
Mashonaland Holdings, which completed the Pomona Commercial Centre recently, also sees strong demand from tourism, and adds that “the property market continues to present opportunities for property investors and homebuyers, despite the persisting economic challenges.”
Fidelity, through its new property fund Eagle, says years of underinvestment have left demand for “bona fide” residential developments.
“As an example, Fidelity Life Assurance of Zimbabwe Limited, an anchor investor in the proposed REIT, launched an investment product that guarantees a residential stand after 15 years and the uptake has been beyond expectations,” says Eagle.
