The Sunday Mail
A room in high-density suburbs such as Epworth, Hopley and some informal settlements dotted around Harare can be as low as US$15, but the living conditions are poor due to the absence of clean running water, ablution facilities and electricity. Rentals for residential properties in up-market suburbs such as Hogerty Hill are going for as much as US$2 500 per month while renting a cottage in most of Harare’s low-density suburbs such as Borrowdale can cost as much as US$700 per month.
A two-bedroomed flat in Harare’s Avondale can be priced at more than US$800 per month with a full house in high-density suburbs such as Glen View, Kuwadzana and Warren Park being pegged at between US$300 and US$500.
Zimbabwe has some of the highest rental rates in Southern Africa.
Investigations by The Sunday Mail In-Depth revealed that rates for commercial space in the Harare CBD are between US$5 and US$25 per square metre.
Rentals for both residential and commercial properties are lower in South Africa as compared to Zimbabwe.
A visit at most South African real estate agency websites reveal that commercial offices in areas surrounding Johannesburg are priced at around R99 per square metre.
Offices in most of Johannesburg’s commercial areas can be rented from R250 to R1 000.
Real estates experts say not only are the prices cheaper in South Africa but the standards are way above those in Zimbabwe.
Town planner Mr Percy Toriro said local rentals and prices of both commercial and residential properties are inflated.
“The local property sector is not operating in a normal way. Prices for properties are highly inflated,” Mr Toriro said.
Experts say there is need for Government to introduce low-cost housing schemes so as to effectively deal with the housing crisis.
Government, through the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, projected a 5 percent growth in real estate by
2018.
Players in the real estate sector do not believe the sector will experience significant growth since the number of tenants that are defaulting on payments are on the rise.
Most tenants are not able to pay their rents, a trend that is attributed to the current liquidity crunch.
In Zimbabwe, default rates are as high as 50 to 60 percent as compared to the normal rates of between 10 and 20 percent.
The Estate Agency Council of Zimbabwe maintains that the recovery of the local property sector is anchored on the recovery of the economy.Domestic property price in comparison
In-Depth Reporters
The prices of domestic property surged an average 25 percent between 2005 and 2008 when speculative tendencies during the hyper-inflationary era dominated most sectors. However, after the adoption of the multi-currency system, the prices stagnated with the stability in the economy.
While determining price increases in the property sector is always difficult due to various factors which vary from geographical to developments, many people still feel the prices are still high. They argue that since the average income earner gets around US$450, it is difficult to buy a stand or house with monthly savings and in an environment where the poverty datum line averages US$500.
A snap survey conducted by The Sunday Mail In-Depth showed that while prices of houses have almost remained static, few people can afford to buy them.
Below are prices for houses in both low- and high-density suburbs from 2009 up to date.
High density – 2009
Budiriro – 4 bedroomed, walled and gated: US$55 000
Glen View – 3 bedroomed, walled and gated: US$45 000
Warren Park – 3 bedroomed, walled and gated: US$40 000
Low density – 2009
Belgravia – 5 bedroomed: US$450 000
Highlands – 2 bedroomed, lounge, dining, fitted kitchen on 1 acre walled and gated: US$190 000
Mandara – 5 bedroomed, 2 lounges, garage, walled and gated: US$180 000
High density – 2010
Kuwadzana – 3 bedroomed house brick under tile: US$50 000
Chitungwiza — 4 bedroomed house, fitted kitchen: US$45 000
Glen View – 4 bedroomed, walled: US$40 000
Low density – 2010
Borrowdale Brooke – 5 bedroomed, lounge, dining, fitted kitchen on 3,8 acres: US$400 000
Shawasha Hills – 5 bedroomed house: US$300 000
High density – 2011
Glen Norah – 4 bedroomed, walled and gated: US$40 000
Mufakose – 3 bedroomed,
walled: US$30 000
Zengeza – 3 bedroomed,
walled: US$28 000
Low density – 2011
Mt Pleasant Heights – 5 bedroomed house: US$400 000
Glen Lorne – 3 bedroomed, lounge, fitted kitchen: US$180 000
High density – 2012
Glen View – 3 bedroomed, walled and gated: US$45 000
Damofalls – 4 bedroomed,
walled: US$40 000
Kambuzuma – 3 bedroomed, walled: US$25 000
Low density – 2012
Belgravia – 4 bedroomed: US$400 000
Avondale – 4 bedroomed: US$190 000
High density – 2013
Dzivaresekwa – 7 roomed
house : US$47 000
Kambuzuma – 3 bedroomed, walled and gated: US$30 000
Budiriro – 4 bedroomed
house: US$42 000
Low density – 2013
Highlands – solid 2 bedroomed, lounge, dining, fitted kitchen on 1 acre walled and gated: US$200 000
Mandara – 5 bedroomed, 2 lounges, garage, walled and gated: US$250 000
Mt Pleasant – 4 bedroomed: US$300 000
High density – 2014
Mabvuku – 4 bedroomed, lounge, kitchen, walled and gated cession : US$45 000
Manyame Park – 4 bedroomed, kitchen, walled and gated: US$35 000
Low density – 2014
Borrowdale Brooke – 6 bedroomed, 2 lounges, dining, fitted kitchen: US$680 000
Emerald Hill – 4 bedroomed, lounge, dining, separate bathroom and toilet: US$170 000
Analysis of the figures shows that house prices have not been increasing much where houses in high-density suburbs have been averaging between US$30 000 and US$40 000 and low-density averaging between $250 000 and US$450 000.
