Is It Cheaper to Buy or Build a House in Zimbabwe?

The Surprising Truth: Is It Cheaper to Buy or Build a House in Zimbabwe?

If you are planning to build a family home or finance a housing development in Zimbabwe, you know the costs can be overwhelming. An observation by Business Digest reveals a startling trend: it is often more cost-effective to purchase a ready-built house in medium and low-density suburbs than to construct a similar property from the ground up.

The Builder's Dilemma: High Costs vs. The Dream Home

The core of the issue lies in construction costs. In Zimbabwe, building can cost between US$250 and US$500 per square metre, a stark contrast to the regional average of around US$100 per square metre.

Why Are Building Costs So High in Zimbabwe?

Analysts and industry leaders point to several key factors that inflate construction expenses.

The Price of Building Materials

The primary driver behind the high cost of construction is the price of building materials. Daniel Garwe, President of the Construction Industry Federation of Zimbabwe (Cifoz), explained that this is largely because many essential materials are imported.

Building Residential Properties in Zimbabwe Might Be Expensive

"Prices of building materials are still expensive in Zimbabwe. This is because most of the building material is imported," Garwe said. "Imported building materials are expensive because of the duty that is imposed."

He also noted a lingering issue from the past, saying, "Some builders and contractors still have a Zimbabwe dollar mindset of profiteering."

Case Study: A Cost Comparison

Andrew Chifamba, managing director of Ailse Properties, provided a practical example:

Buying: A house in a medium-density area like Msasa Park sells for between US$30,000 and US$40,000.
Building: To build a similar house at a rate of US$250 per square metre could easily cost around US$55,000, not including unforeseen expenses.

“In Highlands, a stand costs about US$40,000," Chifamba added. "The value of a property on that land costs between US$100,000 to U$150,000. It will cost more if one is to build a house that is in the same league as those in the same neighbourhood.”

The Argument for Building: Control and Customization

Despite the higher costs, building your own home has distinct advantages. "The advantage of building one’s own house was that everything is done as per one’s instruction," Garwe pointed out.

Furthermore, many existing properties require significant work. “Most properties are in need of renovation as a lot of homeowners were failing to maintain their houses during the hyperinflationary environment,” he said. Building from scratch ensures you have a modern, maintenance-free home tailored to your exact specifications.

A Snapshot of Building Material Costs in Zimbabwe

To understand the expenses, here is a breakdown of common material prices:

Bricks (per 1,000):
- Common Bricks: US$50 - US$90
- Face Bricks: US$100 - US$190
- Semi-Common Bricks: US$40 - US$90
Sand & Stone (per 5 cubic metres):
- Pit Sand: US$40 - US$60
- River Sand: US$45 - US$60
- Quarry Dust: US$50 - US$60
- Gravel: US$70 - US$80
Cement: US$8 - US$10 per bag
Paint (per 5 litres):
- Gloss Paint: US$25 - US$40
- PVA Paint: US$27 - US$35
Other Materials:
- Door Frames: US$24 - US$35
- Gutters (2.4m): US$9
- Covel: US$35

Property Market and Investment Outlook

Property analyst Michael Russell noted that while the property market is adjusting post-dollarisation, the high cost of building remains a challenge. "If one is to do a cost build-up of the house they want to build, especially in low-density areas, they might be tempted to buy a finished product unless they have steady incomes," Russell said.

The commercial property sector tells a similar story. While rental yields for prime offices have improved to around 8%, the high building cost of about $1,200 per square metre for office space makes new construction a significant undertaking.

This, combined with slow income growth, has made international property investors cautious about entering the Zimbabwean market.

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