- House prices in Harare have risen 80% over the past five years
- The surge is fuelled by cash-heavy buyers particularly the diaspora and institutional investors high infrastructure costs, land distribution challenges, and digital market transformation
- The market is largely speculative, with annual rental yields of 8–10% indicating buyers prioritize wealth preservation
Harare - Zimbabwe’s property market has become one of the region’s most paradoxical phenomena, with house prices soaring 80% over the past five years from 45% a decade ago according to the ZimProp Expo 2025.
The average property in Harare now costs US$240,000, or US$421 per square metre, making the capital more expensive than Lusaka, Gaborone, and parts of Nairobi, despite a fragile economy, chronic currency instability, and a national housing backlog exceeding 1.2 million units.
The surge is largely driven by cash-heavy buyers, particularly the diaspora and institutional investors. High deposit requirements of 30% or more, coupled with short repayment windows of 10–15 years, have placed mortgages out of reach for most locals.
In contrast, diaspora remittances, which reached US$1.8 billion in 2024, underwrite as much as 60% of property purchases in northern suburbs such as Borrowdale, Mt Pleasant, and Greendale. For these investors, real estate functions less as housing and more as a store of value amid currency volatility and limited financial alternatives.
Infrastructure costs further inflate property prices. With under-resourced local authorities, developers must fund roads, sewerage, drainage, and water networks themselves. In estates such as Pokugara, Aspindale Park, and Highland Park, these costs can account for 40–60% of stand prices.
On Harare’s outskirts, developers spend between US$8,000 and US$12,000 per plot before selling for around US$20,000. At Highland Park, entire road networks were widened and boreholes installed to guarantee water supply costs typically covered by municipalities in other African capitals.
Land distribution challenges add another layer to the price surge. Land merchants, controlling scarce parcels, often sell plots at inflated prices to developers. This commercialisation of land has made property acquisition a major contributor to rising market prices.
The market is also speculative in nature. Houses rent for about US$900 per month, flats average US$800, and apartments have increased only 6.7% in recent years.
Annual rental yields of 8–10% indicate that buyers are motivated more by capital preservation than rental income, reinforcing the wealth-storage aspect of the sector.
Digital transformation has intensified competition. Property searches in Zimbabwe have risen from under 10% in 2015 to 92% in 2025, with platforms such as Property.co.zw, Google Ads, and WhatsApp groups eclipsing traditional agents and print listings. This has broadened access for diaspora buyers while pushing up prices for prime properties.
Institutional exposure is significant. The Public Service Pension Fund has allocated nearly 47% of its assets to real estate, including Madokero Mall, Monomotapa Hotel, Varsity Heights in Chinhoyi, and the Madokero Industrial Hub.
While these investments provide stable income in a high-inflation environment, overconcentration could pose systemic risks if property values stagnate or fall , a pattern observed in other fragile economies where pension-linked property bubbles triggered financial instability.
Looking ahead, ZimProp identifies peri-urban expansion in Chitungwiza, Ruwa, and Norton as the next growth nodes, alongside niche sectors such as student accommodation and CBD office block conversions into co-working or budget apartments.
However, without mortgage innovation, zoning reforms, and government-led infrastructure investment, affordability will deteriorate, inequality will widen, and the property boom could exacerbate socio-economic disparities.
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