Due to the current currency confusion, most property sellers prefer to be paid in US dollars. This allows them to get value for money and maintain some kind of stability when they price their properties. Those who charge in bond or RTGS will have to change prices regularly and this can be cumbersome. The risk of incurring losses is always there if you miss the prevailing exchange rate. In fact, those very few sellers who accept the local currency only do so if you are paying the current parallel market rate that will be in effect at the time of doing the transaction. Here, we take a look at several properties in order to get a feel of the pricing, trends and other factors at play in the property sector in the country.
House in Greystone Park
A modest family house with 4 bedrooms and 2 bathrooms, open plan dining room, swimming pool and all weather swimming pool costs US$360 000. Add-ons on the property include a one bedroomed cottage, two boreholes and a thatched entertainment area. The seller specifies that they will only take US dollars. The land size for this house is 4 261 square metres.
It is important to note that a 4 bedroomed house on 5 800 square metres in Prospect costs US$180 000. This house comes with a 3 bedroomed cottage. However, a word with the sellers reveals that this house needs some renovations as it is getting old.
Chisipite 4 bedroomed house
In Chisipite, a 4 bed, 2 bath house with a study, large outdoors, pool, scullery, pergola and staff quarters costs a whopping US$500 000. It is clear that the main factor is location. This house sits on 4 000 square metres. The seller will not be persuaded to take bond or RTGS. Neither do they accept mortgages. In the current market, sellers tend to throw in a couple of add-ons and this particular property comes with a generator.
2 000 square metres of residential land in New Marlborough costs US$60 000. This stand comes with a main house and cottage which are both at box level. Perhaps this is the reason why it icosts that much. In Glaudina, a 200 square metre stand costs US$10 000. Both stands are fully serviced.
Townhouse in Westgate
A 3 bedroomed townhouse with 2 bathrooms situated close to Westgate Shopping Mall is asking for US$125 000. The total land area is 5 590 square metres although this is a complex with 7 other similar units. The seller of this property is one of the few who accept RTGS using the parallel market exchange rate of the day.
Middle/High density houses
Located in Budiriro, a new 4 roomed house with 2 bedrooms, kitchen and bathroom costs US$25 000. The land area is 410 square metres. In Manyame Park, Chitungwiza, a 3 bed, 2 bath house costs US$32 000. The land size is 200 square metres. Both sellers do not accept RTGS or bond.
Located in Waterfalls, a commercial property with 3 warehouses, offices, boiler shed and canteen is asking for US$2.5 million. The total land area is 76 243 square metres and the buildings cover 12 750 square metres of that.
A 6 bed, 6 bath property with a swimming pool in Greendale costs US$1 050 000. The land size is 3 416 square metres. This property can be used as a lodge or corporate offices depending on what the buyer wants to do. The seller confirmed that they would accept RTGS or bond at the prevailing exchange rate.
We continue to monitor developments in the property industry closely. This is an area which government needs to protect as it holds considerable potential in economic growth. This is also a sector with massive potential to bring high returns for those investing in it.The property sector in Zimbabwe is facing problems which are almost similar to the other industries. Price distortions are as a result of uncertain exchange rates and this has led many to settle for the more stable US dollar. Talking to a number of estate agents and sellers one can note that there is an increase in the number of sellers who accept instalments for their properties. This is because US dollar transactions have been happening strictly in cash. Not many people can access US$50 000 cash at once. Like many other sectors, the property industry has also been affected by price increases. Cement and other building materials have been in short supply and this drove prices up. As a result, property prices have been on the rise.