Demand for Established Harare Neighbourhoods.
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Demand for Established Harare Neighbourhoods.

The demand for residential and commercial property in Harare's established neighbourhoods is growing, according to experts in Zimbabwe's real estate sector. For both individual and institutional investors, these built-up areas with existing infrastructure and amenities are highly sought-after, commanding premium prices. Our blog examines why property may be the most lucrative investment you can make today.

Premium Prices for Premium Locations

Areas like Mt Pleasant, Avondale, and Strathaven in northern Harare are seeing more and more development. These suburban neighbourhoods already have most of the facilities and conveniences homebuyers and businesses want, from shops and restaurants to schools and healthcare. With limited available land in prime locations, developers are capitalizing on every vacant plot to build new housing, retail, and office space. As supply struggles to keep up with demand, prices per square meter continue rising.

Cluster home developments and gated communities are increasingly popular options on these infill sites. In addition to shared green space and security features, they allow more households to occupy less land, aligning with global smart growth principles. For investors, they maximize returns through higher density compared to standalone houses occupying large plots. The clustered model also caters to modern preferences for community living.

Returns from Redevelopment

Aside from vacant land, some developers are targeting distressed properties ripe for rehabilitation and redevelopment. By modernizing outdated homes and offices, they can unlock significantly more value from these properties. The enhancements also raise surrounding property values. For investors, redevelopment projects achieve higher returns than building on raw land while mitigating risk through established locations.

The Real Estate Development Fund by Firmcare Construction follows this strategy. They target struggling Harare properties with redevelopment potential, particularly for residential and commercial uses in high demand. Their pilot redevelopment in Mt Pleasant's Chase neighbourhood is 70% completed and scheduled for completion in early 2024. The project will transform the site into 13 semi-detached townhouses ready for sale.

Mitigating Risks, Maximizing Rewards

For investors, Firmcare's fund also manages risks through short time horizons. Their projects aim for completion within 12-24 months, allowing investors to cash out returns before macroeconomic shifts can reduce gains. This model generates significant yields rapidly while limiting exposure to market volatility.

In Zimbabwe's economy, minimizing currency risks is also key. The fund accepts investments and issues returns in USD or the local currency equivalent. This further hedges against loss of value from inflation.

Take Advantage of Demand

For those looking to grow wealth, Harare's established neighbourhoods present lucrative real estate investment opportunities. With development demand outpacing supply, projects here deliver premium returns. Investors can capitalize on the redevelopment of distressed properties or infill housing and commercial sites. Partnering with experienced firms helps manage risks while maximizing rewards through value-add projects and currency hedging.

In a growing city like Harare, investment property allows for generating equity, rental income, and capital gains. As housing demand rises with urbanization, properties in prime locations appreciate handsomely. Commercial real estate also thrives as businesses flock to centralised hubs with transport links and skilled workforces. With a sound strategy, property investment enables building lasting wealth - making it the right move in today's market.