Freehold vs Leasehold Property: What’s the Difference in Zimbabwe?

Understanding Land Tenure Systems Before You Buy

When buying property in Zimbabwe, one of the most important legal distinctions you’ll encounter is whether the land is freehold or leasehold. This affects not only ownership rights but also resale potential, access to financing, and long-term value.

In a property market where over 70% of buyers are individuals or families investing long-term, understanding these tenure types is crucial especially for first-time homebuyers and diaspora investors.

Here’s what every buyer needs to know.

1. What is Freehold Property?

Freehold means you own the property and the land it stands on indefinitely. You are the outright owner and your name appears on the title deed. This is the most secure and complete form of ownership in Zimbabwe.

Key Features of Freehold:

• Permanent ownership
  
• Full control over improvements or renovations
  
• Easier to resell or pass on to heirs
  
• More attractive to banks and financial institutions for collateral
  

According to estate agent data, freehold properties account for about 65–70% of urban residential transactions listed on Property.co.zw.

2. What is Leasehold Property?

Leasehold means you are leasing the land from the government or a land authority for a fixed term usually 99 years in Zimbabwe. You own the buildings or developments on the land, but the land itself remains under government or local authority ownership.

Key Features of Leasehold:

• Time-limited ownership (typically 99 years)
  
• Often applies to State Land, resettlement areas, and some peri-urban zones
  
• Requires government or council approval to transfer or sell
  
• Renewals and transfers can be subject to policy changes
  

Example: Many farms and peri-urban plots around Harare, Goromonzi, Norton, and Mazowe are on 99-year leases under A1 or A2 resettlement models.

3. Pros and Cons Comparison

Tip: Before buying, request to verify land tenure via a Deeds Office search or request clarification from the Ministry of Local Government or Lands.

4. Why This Matters When Buying Property

Your ability to develop, sell, or use the property as collateral often hinges on the land tenure.

• Want to build a holiday lodge in Nyanga? Make sure it’s not on leasehold land with zoning limitations.
  
• Planning to get a mortgage or diaspora loan? Banks prefer freehold title properties.
  
• Buying in Chitungwiza, Ruwa, or Goromonzi? Ask whether it's on council lease, government permit, or title deed.
  

Use our Property Price Trends Tool to compare property values in areas where leasehold vs. freehold may impact pricing.

5. What About Unit Titles in Flats and Cluster Homes?

In many gated complexes, you may get a Sectional Title Deed (Unit Title). You don’t own the land individually, but you own your unit outright and share common property with other owners.

Unit title is still considered freehold, and banks accept it for financing.

As of 2025, cluster homes and apartments account for 35% of all new builds in Harare, driven by land shortages and demand for secure housing.

6. Key Questions to Ask Before You Buy

• Is this property freehold, leasehold, or permit-based?
  
• Can I get title deeds, or is it under an offer letter or lease?
  
• Can the lease be transferred or renewed? Are there any restrictions?
  
• Does the property have council or government approval?
  
• Is the land bankable will banks finance it?
  

Final Thoughts

Understanding the difference between freehold and leasehold in Zimbabwe isn’t just a legal technicality it shapes your entire investment journey. While both forms of tenure have value, freehold offers more security and flexibility, especially if you plan to borrow, develop, or pass the property on to future generations.

Always verify land tenure before buying, and consult a trusted estate agent or lawyer to ensure the paperwork aligns with your goals.

Start your search for verified properties with full ownership transparency at Property.co.zw.