Upscale living on the rise: Luxury villa developments a hit in Zimbabwe
Zimbabwe’s housing market witnessed a flourishing trend of privately funded developments, characterized by significant advancements and progress in various suburbs throughout the country.
According to the Zimbabwe market update published by Knight Frank Zimbabwe, this was fuelled by an increasing desire for high end residential choices within the market and sustained demand outpacing supply.
“Privately funded developments are flourishing in Zimbabwe’s housing market, with significant progress observed in various suburbs,” reads the Knight Frank Zimbabwe update in part.
The construction of new residential properties in the market is heavily influenced by the involvement of financial institutions and other corporations which made significant contributions by delivering over 400 units of both 2 bedroom and 3 bedroom accommodations.
These are located in low density areas and predominantly high density suburbs across the country to meet the housing needs of various segments of the population and cater to different preferences and lifestyles.
The neighbourhoods of Marlborough, Sunridge and Greencroft have successfully completed the construction of fifty nine 3 bedroom units, demonstrating commitment to providing housing options by sector players.
Moreover, an additional thirty more units are currently under construction further expanding the availability of residential properties in these areas.
“Marlborough, Sunridge, and Greencroft have already delivered over fifty-nine 3-bedroom units, while construction has commenced on thirty more units,” added Knight Frank Zimbabwe.
The update notes that as of December 2023, Meyrick Park , Greendale and Newlands emerged as prominent areas where more than 100 units comprising both 2 bedroom and 3 bedroom layouts have been constructed.
The market for new cluster developments offers a price range from US$60 000 and US$80 000 per unit in high density suburbs and US$140 000 to US$250 000 per unit in middle density areas.
“Units in high-density suburbs typically range from US$60 000 to US$80 000 per unit. At the same time, those in middle-density areas command higher prices, ranging from US$140 000 to US$250 000 per unit,” added Knight Frank Zimbabwe.
A strong demand in the residential sector drives economic growth by revenue generation through property sales and taxes while attracting foreign investments.
Rental agreements in the residential rental market are primarily denominated in US dollars, with net lease rates ranging from US$1 400 per month for prime 3 bedroom units to US$3 000 for luxury apartments.
According to Knight Frank Zimbabwe, the residential market exhibits diverse rental rates, however, it consistently maintains an average yield of 8 percent, a clear suggestion that investing in residential properties remains attractive, even in the face of evolving market dynamics.
Knight Frank Zimbabwe added that, “Despite varying rental rates, the sector maintains an average yield of 8 percent, reflecting the attractiveness of residential property investments amidst evolving market dynamics.”-businessweekly
