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Property – Property seekers cry foul

Staff Writer

PROPERTY seekers are now crying foul saying landlords prefer to lease or sell their houses and flats to individuals with foreign currency only. The move comes amid debate at the

Reserve Bank of Zimbabwe about the continued pegging of properties in foreign currency.

While it is legal to peg items in foreign currency in Zimbabwe it is however illegal to actually charge for them in hard currency.

Landlords are pegging their properties in United States dollars and British pounds to hedge against spiraling inflation which continues to soar monthly.

The country’s inflation currently stands at 455,6% but analysts say it could reach 1 000% by year-end.

Houses, which were going for $35 000 in the 1980s, are now selling for more than $1 billion in leafy suburbs such as Highlands, The Grange, Mt Pleasant, Borrowdale and Helensvale.

“We cannot stop landlords from pegging their properties in United States dollars,” said an estate agent.

“They now prefer foreign currency because it is much safer to guard against inflation.”

However some landlords are using the foreign currency for speculative purposes as they resell it on the parallel market and then immediately snap up more properties on the market.

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