LOCAL investment facilitator, Investor Hosting Centre (IHC), says Zimbabwe has a large pool of untapped capital in the form of unmortgaged property, with industry players warning that failure to integrate these assets into formal investment structures is limiting economic growth.
According to statistics, most residential and commercial properties in the country are owned outright, with no mortgage or financial encumbrance. While this reflects high levels of asset ownership, it has also left significant value dormant within the financial system.
The development has sparked calls for improved frameworks that can convert property ownership into investable capital, as analysts argue that unlocking value from existing assets could boost housing delivery, infrastructure development and small business financing while strengthening domestic capital mobilisation.
IHC chairperson Elias Hwenga said the country’s capital constraints are not driven by a lack of assets but by weak mechanisms for converting those assets into investable opportunities.
“Zimbabwe is asset-rich but capital-constrained. A large number of properties are fully paid for, yet they are not being leveraged to support development, enterprise growth, or investment,” he said.
Hwenga said documentation gaps, inconsistent title systems, and limited deal-structuring platforms had kept property assets disconnected from investors.
“The issue is not ownership, but structure. Without proper governance, verification and packaging, assets remain invisible to capital,” Hwenga said.
In regional and international markets, property is routinely used to anchor financing for housing, infrastructure, and business expansion.
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In Zimbabwe, however, low mortgage penetration is attributed to historical economic volatility and limited long-term financing options.
Hwenga said unlocking value from property does not require aggressive borrowing but transparent frameworks that allow for joint ventures, equity participation, and asset-backed transactions.
IHC facilitates access between asset owners and investors by hosting opportunities under defined governance and documentation standards.
“Investors are willing to engage where assets are unencumbered, but they require clarity, credibility and risk discipline,” Hwenga said.
Market watchers have often stated that formalising property-backed investment could support housing delivery, urban renewal, and SME financing while strengthening domestic capital mobilisation.
“Funding for housing development remains multi-barrelled, with the private sector, banks, and property developers financing projects across the country,” Knight Frank said in its latest market update for the second half of last year.
“The decision to fund the sector is mainly due to housing projects having shorter turnaround times and low capital entry levels. The banking sector does not offer mortgage financing, and the possible appetite in the sector remains underfunded.”
The realtor revealed that most high-density housing developments across the country are constructed without water, sewerage, tarred roads, or electricity, risking the health and safety of beneficiaries, while medium-density suburbs are better funded and have all services.
“The low-density residential developments are not very active due to limited demand for high-value residential properties. The high-value sector is financed by a few investors upon request from high-net-worth individuals in the market,” Knight Frank said.
“Property prices vary by location, with medium-density housing typically ranging between US$40 000 and US$100 000, while low-density properties are generally priced above US$200 000.”
This means Zimbabwe has unmortgaged properties worth multiple billions of dollars.
“The development of new housing stock is more active in cluster housing and in medium and high-density developments. The demand for cluster housing is driven by the need for security and lifestyle perspectives similar to those in comparable emerging economies,” Knight Frank said.
“The increase in burglary cases and the need to reduce costs through shared security services are pushing purchasers to settle for gated-community housing schemes. Despite the poor infrastructure, several cluster housing projects delivered to the market are of high quality, thereby enticing young and middle-aged families to embrace the middle-class lifestyle offered by the total package.”
