The Bulawayo Housing Landscape in Medium to Low Density Suburbs: What Does the Market Have to Offer?

Property investors striving for success need to stay informed about the latest trends in the market. This article provides insights from property experts on the current state of the Bulawayo housing market.

Bulawayo, also known as the City of Kings, along with the rest of Zimbabwe, is witnessing a unique trend in its housing market. On one side, there’s a surge in demand for affordable housing driven by population growth and urbanization. The Council reports a backlog of approximately 100,000 housing stands, resulting in prolonged waiting periods for many residents.

Conversely, the supply of housing is constrained, causing an escalation in housing prices. Consequently, many residents are finding the concept of cluster homes and townhouses more attractive. These property types are generally more affordable than conventional houses, which typically range from $55,000 to around $370,000 in upscale areas like Hillside, Suburbs, Kumalo, etc.

These modern homes come equipped with amenities like Wi-Fi (now mandated for private developers under the new National Human Settlement Policy) and are ideally suited for small families - a growing trend in Zimbabwe where the average household consists of four members.

The demand for apartments and townhouses has continued to grow as they offer more affordable housing options for the average citizen. As a result, projects in Bulawayo such as Hopeville, Hopelyn, Wilsgrove, and Kings City are on the rise. This is also because the housing market’s performance is being driven by the diaspora and USD mortgage schemes by banks, where some of them are offering fixed mortgages with interest rates ranging from 8%- 15% for maximum periods of 5, 10 or even 15 years based on the individual’s income. Mortgage interest rates (on short tenors) for ZWL are typically ranging from around 110%- 120% p.a.

However, there is still a shortage of these types of properties, which has resulted in the prices being steep. Thus, although it could be a good time for a seller to put their property on the market, it may still take a while for it to sell as it is sluggish. This is also largely influenced by the state of the economy which is characterized by high rates of inflation which leaves people with relatively low disposable income. This means less spending capability for the average home seeker.

We could however see a potential increase in the uptake of future developments in Bulawayo seeing as the development costs in Harare continue to increase, the Harare City Council recently increased the structure for building plan approvals and inspection fees. The costs of developing in Bulawayo will remain relatively lower and this may attract more buying seeing as the city is the closest alternative.

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[1] News Ziana. (2023) Bulawayo opts for high-rise housing. Available at: https://newziana.co.zw/2023/03/21/bulawayo-opts-for-high-rise-housing/ (Accessed: 28 June 2023). [2] www.thepropertybook.co.zw [3] Centre for Affordable Housing Finance Africa, (2022). Zimbabwe. Available at: https://housingfinanceafrica.org/countries/zimbabwe/ (Accessed: 28 June 2023). [4] CBZ Mortgage Finance Information, 2023

BancABC Mortgages, 2023 FBC Mortgage Brochure, 2023