Property dreams go collective

103

Leonita Mhishi

FOR decades, property ownership in Zimbabwe has been viewed as the ultimate marker of financial success. A house in Harare’s northern suburbs, a cluster of rental flats in Bul­awayo, or a commercial building in the central business district represented not just wealth, but security. Yet for many young Zimbabweans, those dreams have increasingly felt out of reach.

Property prices have risen sharply over the years, while access to affordable long-term financing remains limited. Most young professionals, entrepre­neurs, and graduates entering the work­force simply do not have the capital re­quired to purchase investment property on their own. Faced with these barriers, a new trend is beginning to emerge glob­ally and is slowly finding relevance in Zimbabwe: crowd buying.

The concept is simple. Instead of one individual buying an entire proper­ty, several investors pool resources and collectively own it. Through property investment groups, syndicates, or frac­tional ownership arrangements, people can purchase a share of a building rather than the whole asset.

For a generation that grew up shar­ing rides, co-working spaces, and digital services, shared ownership of property may seem like a natural progression. The question is whether this new model represents a genuine pathway to wealth creation or merely another fashionable investment trend.

The appeal is easy to understand.

Across Zimbabwe, many young people earn enough to save modest amounts each month but not enough to buy a complete investment property. A commercial property worth US$500 000 may be beyond the reach of an individu­al investor, but if 50 investors contribute US$10 000 each, the purchase becomes possible.

Globally, fractional real estate owner­ship has grown rapidly in recent years as technology platforms make it easier for investors to participate in property mar­kets with smaller amounts of capital. In­stead of requiring hundreds of thousands of dollars, some international platforms allow participation with amounts as low as a few hundred dollars. The model has become particularly attractive to young professionals seeking exposure to real estate without the burden of a large mortgage or the responsibilities of direct property management.

For Zimbabweans, the attraction goes beyond affordability.

Property remains one of the few as­set classes that many people understand intuitively. Unlike complex financial instruments, a building is tangible. In­vestors can see it, visit it, and understand how it generates value through rentals and appreciation.

In an environment where memories of currency instability remain fresh, many Zimbabweans continue to re­gard real estate as a safer store of value than cash savings. This helps explain why property investment groups have become increasingly common among friends, relatives, church members, and professional associations.

Stories are emerging of groups of nurses pooling resources to buy rental units. Young entrepreneurs are joining forces to acquire commercial stands. Diaspora Zimbabweans are combining savings with relatives at home to enter the property market.

These arrangements reflect a grow­ing reality: collaboration is becoming the new gateway to ownership.

There are undeniable advantages.

The first is accessibility. Crowd buy­ing lowers the barrier to entry and al­lows ordinary citizens to participate in wealth-building opportunities that were previously reserved for the wealthy.

The second is diversification. Rath­er than putting all available capital into one property, investors can spread in­vestments across multiple projects. In­ternational studies show that fractional ownership enables investors to access larger and more diverse property port­folios than would be possible through direct ownership alone.

Third, professionally managed prop­erty groups can reduce the operational headaches associated with real estate. In­vestors do not have to deal with tenants, maintenance disputes, or rent collection. Instead, specialists manage the assets while investors receive their proportion­al returns.

Perhaps most importantly, crowd buying introduces a culture of investing among younger generations.

Many Zimbabweans have tradition­ally associated investment with large sums of money. Fractional ownership challenges that mindset by demonstrat­ing that wealth can be built gradually through collective participation.

Yet enthusiasm should not blind in­vestors to the risks.

One of the biggest dangers is the as­sumption that property prices only move in one direction. Real estate markets can decline. Rental incomes can fall. Economic downturns can affect occu­pancy rates and property values. When investors buy into a collective property scheme, they remain exposed to the same market risks that affect traditional property owners.

Another challenge is liquidity.

A property may be valuable on paper, but converting ownership into cash can be difficult. Fractional ownership does not automatically solve this problem. Many investors discover that selling a small stake in a property can be far more difficult than expected. In some cases, there may be no willing buyers at all. Experts consistently identify illiquidity as one of the most significant risks in fractional real estate investment.

Control is another issue.

When multiple investors own a prop­erty, decisions must be shared. Questions inevitably arise. Should the property be renovated? Should rents be increased? When should the asset be sold?

What happens when investors dis­agree?

In traditional ownership, one per­son makes the decisions. In collective ownership, consensus becomes essen­tial. While this democratic approach has advantages, it can also slow deci­sion-making and create conflict. Inves­tors generally have limited influence over management decisions once they join a fractional arrangement.

Then there is the issue of governance.

Zimbabwe has witnessed numer­ous investment schemes over the years that promised attractive returns only to collapse because of poor management, weak oversight or outright fraud.

The success of any property invest­ment group depends heavily on trans­parency and trust. Investors must un­derstand exactly who owns the property, how income is distributed, what fees are charged and how decisions are made.

International experience offers useful lessons. While property crowdfunding and fractional ownership have created opportunities for investors, some over­seas platforms have also encountered difficulties. Delayed repayments, proj­ect failures and platform collapses have highlighted the importance of rigorous due diligence before committing capital.

For Zimbabwe’s financial sector, this emerging trend presents both an oppor­tunity and a challenge.

The opportunity lies in mobilising capital that would otherwise remain idle. Small savings scattered across thousands of households can be transformed into productive investment capital when pooled effectively. The challenge is en­suring adequate investor protection. As crowd buying becomes more common, regulators, financial institutions, and property professionals will need to de­velop frameworks that protect investors while encouraging innovation. Without clear rules, the sector risks attracting op­portunists eager to exploit inexperienced investors.

The future of property investment may not belong exclusively to wealthy landlords or large corporations. It may increasingly belong to communities of investors who pool resources to achieve what none could accomplish alone.

For young Zimbabweans facing high entry barriers, crowd buying offers something that traditional property own­ership often does not: a realistic starting point. It is not a shortcut to riches. It does not eliminate risk. It cannot replace the need for careful research and financial discipline.

What it does offer is access.

And in a country where many aspir­ing investors have long been locked out of the property market, access may prove to be the most valuable asset of all.

The dream of owning property in Zimbabwe is evolving. The title deed may no longer carry a single name. Instead, it may represent dozens of in­vestors united by a common belief that wealth creation is no longer an individu­al pursuit, but a collective journey.

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.