Housing Finance in Zimbabwe


Zimbabwe has a promising housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Zimbabwe is 9.5 percent, as of September 2016, and requires at least a 15 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 18 000, which is for a 30 square metre unit). Cement prices are higher than the continental average, at US$ 13 for a 50-kilogram bag.

With an urbanisation rate of 1.93 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. In response to these difficult conditions, many firms have sought different, innovative approaches. An example is that some organisations have shifted their work to developing serviced stands and providing credit for households to purchase them, creating opportunities for households to incrementally construct their own housing. There is a strong interest in the market by local players, demonstrated by the number of Zimbabwean members of the African Union for Housing Finance. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in COUNTRY can afford.

Find out more information on the housing finance sector of Zimbabwe, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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