Fractional Property Ownership Platform: A Property Investing Solution for Lower-To-Middle Income Earners in Zimbabwe

Abstract

This business venture research project seeks to develop a business solution of providing a fractional property ownership platform (FPOP) as a solution for the low- to-medium earning population in Zimbabwe to participate in property investing. As supported by literature, majority of Zimbabweans do not invest in the property market mainly because they cannot afford to, given their relatively low income levels and high property prices. The research paper used a quantitative research method to gather primary data through a questionnaire which was responded to by a sample population of 192 participants. Through cluster sampling, the research used the questionnaires to evaluate challenges being faced by low-to-medium income earners in Zimbabwe to invest in properties, and develop an appropriate fractional property ownership platform that can address these problems. The same research tool played a critical role in establishing the size of the market that can be served by the FPOP. The research results strongly indicate that the general level of understanding about fractional ownership platforms positively co-relates with the market’s willingness to use such platforms. Although the presented outcome further proves a ready market for fractional properties, there is a huge knowledge gap which requires education and awareness campaigns to promote platform acceptability. The business venture research project concludes with a clear business plan indicating that fractional property ownership platform can become a viable business in Zimbabwe. The business plan used Porter’s Five Forces Model and indicated a very limited competition and moderate barriers to entry in the market. The platform can be offered as a mobile application and the research project also provides the implementation plan and timelines. However, there is need to check further with Zimbabwean regulatory environment to make sure that FPOP can be operated legally under the laws of Zimbabwe.