Staff Writer 
By Leonita Mhishi
IN Zimbabwe, conversations about money often end with a familiar conclusion: buy land, build a house, or invest in property.
For decades, bricks and mortar have been more than just physical structures ― they have become a financial refuge in an economy where currency volatility, inflation shocks, and shifting monetary policies have repeatedly reshaped how people store wealth.
From young professionals buying stands on the outskirts of Harare to diaspora investors constructing cluster homes in Borrowdale, the instinct to convert savings into property is deeply rooted in Zimbabwean economic culture. In a country where financial uncertainty has shaped investment behaviour for years, real estate has emerged as one of the most trusted hedges against inflation.
Zimbabwe’s economic history partly explains this phenomenon. The country has experienced periods of severe inflation and currency instability, including the hyperinflation crisis of the late 2000s and subsequent currency transitions. These experiences fundamentally altered how citizens perceive financial assets. Bank balances can lose value overnight, but a piece of land in Ruwa or a house in Greendale remains tangible and enduring.
Today, many property transactions are conducted in US dollars, a practice that has helped protect both buyers and landlords from local currency fluctuations. Rental agreements across residential and commercial property markets are predominantly denominated in US dollars, shielding property owners from inflation and exchange rate shocks.
This dollarisation of the property market has reinforced the perception that real estate offers a stable store of value. While other sectors struggle to maintain pricing consistency during periods of currency volatility, property investors often find comfort in the fact that their assets retain value in hard currency terms.
Yet inflation hedging is only part of the story. Demand for property in Zimbabwe is also driven by a simple but powerful reality: there are not enough houses to meet the needs of a growing urban population. Estimates indicate that the country faces a housing backlog of more than 1,2 million units, with the majority of the deficit concentrated in major cities such as Harare and Bulawayo.
When demand consistently exceeds supply, prices inevitably rise. This imbalance has been a central force shaping Zimbabwe’s real estate market. Rapid urbanisation, population growth, and limited new housing development have combined to push property values steadily upward, especially in urban centres.
Harare, as the economic heartbeat of the country, reflects this trend most clearly. The average property price in the capital now sits at roughly US$240 000, representing an increase of around 80 percent over the past five years.
In the city’s prestigious northern suburbs, property prices climb even higher. Houses in Borrowdale, for example, can approach US$860 000, while luxury clusters and villas in areas like Highlands or Mount Pleasant continue to command premium prices.
Meanwhile, emerging middle-income suburbs such as Madokero, Arlington, and Mabvazuva are gaining popularity among first-time buyers and young families seeking more affordable entry points into the market. These areas typically offer properties ranging between roughly US$100 000 and US$170 000, making them attractive to investors who want exposure to the market without the price tags of Harare’s traditional elite neighbourhoods.
The demand for property across these suburbs illustrates a broader truth about Zimbabwe’s investment landscape: people do not just buy houses to live in; they buy them to protect wealth.
In fact, property has increasingly become the preferred investment vehicle for many Zimbabweans, particularly those with access to foreign currency. Diaspora investors play a crucial role in this dynamic. Remittances flowing into the country — estimated in the billions annually — frequently find their way into residential developments, housing construction, and stand purchases.
For many Zimbabweans living abroad, buying property back home is both an emotional and financial decision. It offers security for relatives, a retirement plan, and a tangible link to the country they left behind. At the same time, it allows them to convert foreign earnings into assets that may appreciate.
Rental returns also add to the appeal. In several high-demand suburbs, rental yields typically range between six percent and 12 percent annually, providing investors with steady income streams alongside long-term capital appreciation.
For landlords, this combination of rental income and asset appreciation makes property particularly attractive compared to other investment options. Zimbabwe’s financial markets remain relatively shallow, and many investors have limited access to diversified investment products such as equities or bonds. Property, by contrast, is familiar, tangible, and culturally valued.
Institutional investors have also taken notice. Pension funds, insurance companies, and investment funds increasingly allocate significant portions of their portfolios to property. In some cases, property investments account for nearly half of institutional assets under management, reflecting confidence in the sector’s long-term resilience.
Of course, Zimbabwe’s property market is not without challenges. Construction costs have risen sharply due to reliance on imported building materials and infrastructure gaps. In many developing suburbs, homeowners must install boreholes, solar power systems, and access roads themselves, adding significant expenses to construction budgets.
Legal and transaction costs also increase the price of property acquisition. Buyers typically face additional expenses such as transfer duties, legal fees, and registration charges, which can add 10 to 15 percent to the purchase price of a property.
Despite these hurdles, property demand remains strong. Part of the reason lies in the psychology of investment within Zimbabwe’s economic environment. Real estate provides a sense of permanence in a financial system that has often felt uncertain.
A young entrepreneur in Harare recently explained his reasoning for investing in property rather than leaving savings in a bank account. “Money can disappear,” he said. “But land is always there. Even if the economy changes, you still have something.”
That sentiment is echoed across generations. Parents encourage their children to buy stands early in life. Families pool resources to build homes gradually. Diaspora workers send remittances specifically for construction projects back home.
The result is a property market driven as much by emotion and experience as by financial calculations.
Price trends suggest that this demand will continue shaping Zimbabwe’s urban landscape. Analysts expect modest price growth in the coming years, particularly in peri-urban areas where land remains available for development.
As infrastructure expands and cities grow outward, suburbs once considered remote are gradually transforming into vibrant residential hubs. Areas such as Ruwa, Norton, and parts of the Mazowe corridor are attracting investors who see long-term potential in land banking and future development.
For Zimbabweans navigating an unpredictable economic environment, property represents something more than investment returns. It is a form of financial self-defence — a way of safeguarding hard-earned savings against inflation and currency risk.
In many ways, the enduring popularity of real estate reflects the resilience of Zimbabweans themselves. Faced with economic uncertainty, they continue to find practical ways to protect wealth, support families, and plan for the future.
And in a country where the value of money has often fluctuated dramatically, the enduring appeal of bricks and mortar remains simple and powerful: land does not disappear, houses do not evaporate, and property — in the eyes of many Zimbabweans — still stands as the safest place to store value.
Mhishi is the principal registered estate agent at House of Stone Properties and can be reached at +263 772 329 569 or via email at leonita@hsp.co.zw or www.hsp.co.zw
