Skip to main content

Property investors need to be on top of what’s happening in the market if they are seeking to be at the top of their investment game. What better way is there of finding out what’s going on in the market, than reading about it from property experts who have all the necessary information? Here is a brief touch-up on what’s been going on in Bulawayo’s housing market.

The City of Kings and the country at large is experiencing a mixed trend, on one hand, there is a high demand for affordable housing due to an increase in population and urbanization. According to Council, there is a backlog of about 100 000 stands for houses which has resulted in many residents being ‘stuck’ on the waiting list for years. On the other hand, the supply of housing is limited, leading to a rise in housing prices. This is why many are finding the concept of cluster homes and townhouses more appealing. Most of these property types are cheaper than the conventional houses that usually range from $55 000 to around $370 000 in upmarket areas such as Hillside, Suburbs, Kumalo, etc. They are equipped with modern amenities including Wi-Fi (which is now required of private developers to provide under the new National Human Settlement Policy) and are made perfect for small families seeing as small families are becoming the norm in Zimbabwe, with the average being four people in a household.

The demand for apartments and townhouses has continued to grow as they offer more affordable housing options for the average citizen. As a result, projects in Bulawayo such as Hopeville, Hopelyn, Wilsgrove, and Kings City are on the rise. This is also because the housing market’s performance is being driven by the diaspora and USD mortgage schemes by banks, where some of them are offering fixed mortgages with interest rates ranging from 8%- 15% for maximum periods of 5, 10 or even 15 years based on the individual’s income. Mortgage interest rates (on short tenors) for ZWL are typically ranging from around 110%- 120% p.a.

However, there is still a shortage of these types of properties, which has resulted in the prices being steep. Thus, although it could be a good time for a seller to put their property on the market, it may still take a while for it to sell as it is sluggish. This is also largely influenced by the state of the economy which is characterized by high rates of inflation which leaves people with relatively low disposable income. This means less spending capability for the average home seeker.

We could however see a potential increase in the uptake of future developments in Bulawayo seeing as the development costs in Harare continue to increase, the Harare City Council recently increased the structure for building plan approvals and inspection fees. The costs of developing in Bulawayo will remain relatively lower and this may attract more buying seeing as the city is the closest alternative.

[1] News Ziana. (2023) Bulawayo opts for high-rise housing. Available at: https://newziana.co.zw/2023/03/21/bulawayo-opts-for-high-rise-housing/ (Accessed: 28 June 2023).

[2] www.thepropertybook.co.zw

[3]Centre for Affordable Housing Finance Africa, (2022). Zimbabwe. Available at: https://housingfinanceafrica.org/countries/zimbabwe/ (Accessed: 28 June 2023).

[4] CBZ Mortgage Finance Information, 2023

BancABC Mortgages, 2023 FBC Mortgage Brochure, 2023

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments