Navigating the Dynamics: Seeff’s Overview of the Zimbabwe Real Estate Market
Despite the negative impact of the COVID-19 pandemic, Seeff Zimbabwe’s Property Practitioner, Patience Patongamwoyo, sheds light on the surprising resilience of the Zimbabwe real estate market. In the wake of the pandemic, the market is displaying noteworthy activity, offering both buyers and sellers opportunities amidst the ongoing economic challenges.
Economic Factors at Play
The Zimbabwe real estate market operates within a unique economic landscape. With the current interest rate standing at 150%, borrowing costs have soared. Notably, sellers often prefer transactions in US dollars, increasing expenses for buyers. Economic factors influencing the real estate market include a weak currency, high interest rates, depressed disposable income, unfavorable mortgage facilities, and exchange rate risks.
Hope Amid Challenges: Seeking Professional Guidance
While economic challenges persist, there is hope for buyers. Seeking guidance from trusted local Property Practitioners becomes crucial. Their expertise and deep understanding of local market dynamics provide valuable insights, enabling buyers to make informed decisions and navigate economic challenges effectively.
Challenges in Property Pricing
For sellers, staying informed about current market trends and property prices is essential to avoid overpricing. Additionally, vigilance against unethical Property Practitioners manipulating property prices is advised. Transaction delays may be expected due to the stringent mortgage financing system.
Empowering Buyers Through Education
Buyers face the challenges of overpaying and lack of a standardized pricing system. To address these issues, education becomes pivotal. Buyers can explore various real estate resources to equip themselves for property purchases and understand the importance of working exclusively with a trusted Property Practitioner.
Quality Concerns in New Developments
Buyers eyeing new developments should be cautious of compromises on quality by developers aiming to reduce costs and save time. Diligence in assessing the quality of new properties is vital to avoid potential issues.
Landlords and Tenants Dynamics
Landlords grapple with recovering outstanding amounts, late payments, and defaulting tenants. To mitigate these challenges, landlords are advised to make wise rental investments, conduct a thorough vetting of tenants, and plan for unforeseen issues. Tenants, on the other hand, face challenges in reclaiming security deposits, dealing with overpricing, and landlords neglecting property maintenance.
Buyer’s Market Dynamics
The residential sector in Zimbabwe is thriving, driven by demand from the diaspora and foreign buyers with higher disposable income. Accurately priced properties tend to sell quickly, but informed buyers often secure properties at an average price of 80% below the asking price, shaping the current buyer’s market.