Zimbabwe property market poised for growth

Many would argue that with everything going wrong in Zimbabwe, property is the last thing one would think of investing in.

But estate agents operating in that country are confident that the property market is set to be buoyant as investor appetite and confidence is renewed.

According to the Knight Frank Africa Report 2011, the majority of house purchases are self-funded resulting in buyers being able to dictate terms. This is because there is little credit available and a limited number of financial institutions offering mortgage finance.

Furthermore, the report indicated that although the global economic slowdown affected the levels of international investment in Africa, overseas investors continue to see opportunities for property development in Africa.

The property market in the past year has had its fair share of ups and downs characterised  by a downturn thanks to the Reserve Bank of Zimbabwe (RBZ) Directive in April, said Juliet Harris, managing director of  Pam Golding Properties (PGP) in Zimbabwe.

Locals are said to be the majority of buyers, some who are either upgrading to bigger properties or downsizing to meet their financial commitments.

Chinese buyers have cooled off with an increase in Singapore nationals entering the property market. Buyers are crazy about Harare, the largest and capital city of Zimbabwe.

Demand is huge in the wealthy suburbs such as Borrowdale, Chisipite and Newlands areas which command high prices, have better schools, a quality water supply and aesthetic residential appeal.

Properties in the US$150k to US$250k are also in demand as many people are in a position to afford without bond financing.

RE/MAX Realty Centre in Zimbabwe expects increased activity in the market and has no doubt the property market is poised for further growth.