If you’ve ever looked at property listings in Zambia — especially from the diaspora — you’ve probably asked yourself:
Why are properties priced in dollars?
It’s a fair question. Zambia is a sovereign country. We have our own currency — the kwacha. So why should something as local as property be priced in dollars? On the surface, it doesn’t seem to make sense.
But when you look a little deeper at how the property market actually works, the reasoning becomes clearer.
Understanding the Reality Behind Pricing
This isn’t a new concern. Even within Zambia, people have questioned why property is priced in dollars. And for many buyers, it can feel unfair — earning in kwacha but buying in dollars. But property is not a short-term transaction.
It’s a long-term investment — and that changes how pricing works.
Currency Volatility
Zambia has had a free-floating currency since the 1990s, and over time, the kwacha has experienced significant fluctuations.
There are periods when it weakens rapidly and others when it strengthens just as quickly.
Now consider this from a developer’s perspective. Many properties are sold with flexible payment plans — sometimes stretching over two to three years. If a property is priced in kwacha and the currency weakens during that period, the seller loses value. This is one of the main reasons pricing is often set in dollars.
It allows developers to preserve value over time while still offering flexible payment options to buyers.
The Cost of Developing Property
Another important factor is the cost of developing an estate. When you’re buying into a properly planned development, you’re not just paying for land. You’re paying for infrastructure such as:
- sewer systems
- water supply
- electricity
- roads
These are known as bulk services — and they are expensive to put in place. To finance these developments, developers often require external funding. But borrowing in Zambia in kwacha comes with very high interest rates — sometimes as high as 20 to 30 percent per year.
Because of this, many developers finance projects in dollars. And naturally, if the investment is in dollars, the pricing will also be in dollars.
Imported Materials and Construction Costs
Zambia is a landlocked country and an import-driven economy. Many of the materials used in construction are not produced locally. They are imported. This includes:
- building materials
- specialised equipment
- solar systems
With load shedding, many developments now include solar backup systems — and these are priced in foreign currency. So again, if developers are spending in dollars, they will price in dollars to recover that investment.
Managing Macroeconomic Shocks
There are also broader economic factors that affect property development. Things like:
- drought
- fuel price increases
- inflation
- and global events
These are outside the control of developers, but they have a direct impact on construction costs. Pricing in dollars becomes a way of managing that uncertainty and shocks.
What Has Changed Recently?
At the end of 2025, the Bank of Zambia introduced new currency directives. Under these rules, domestic transactions must be settled in kwacha, although contracts can still be denominated in foreign currency.
Properties can still be priced in dollars, but payments are made in kwacha This introduces a new dynamic. For example, if the kwacha strengthens, buyers may end up paying less in kwacha than they would have previously.
But property markets don’t adjust overnight. Real estate is a slow-moving sector, and any meaningful changes in pricing will take time.
A Balanced Perspective
So where does this leave us? Dollar pricing exists for practical reasons:
- protecting value over time
- managing long-term payment plans
- recovering development costs
At the same time, the new regulations and changes in the strength of the kwacha may start to influence how the market behaves.
It’s something that will continue to evolve.
Final Thought
If you’re in the diaspora trying to make sense of property pricing back home, it’s important to look beyond the surface. This isn’t just about currency.
It’s about how the entire system works — from financing and construction to long-term investment.
If you’d like to understand this in more detail, including how the new currency directives affect you as a buyer, you can watch the full video here:
[Properties priced in dollars]
Question
What do you think?
Should properties in Zambia continue to be priced in dollars — or should we move fully to kwacha?
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