Country sees boom in housing projects

Patrick Chitumba, Midlands Bureau Chief
ZIMBABWE’s commercial and residential property market has weathered many odds as evidenced by the ever-presence of ongoing construction projects across the country.

This positive development comes at a time when the construction sector is projected to continue growing largely due to demand for offices, industrial and retail buildings as well as houses across the country.

The real estate sector in the country is offering a great investment opportunity for both corporates and individuals.

The ongoing housing reform agenda also provides opportunities for the private sector to participate in infrastructural development projects.

Key reforms have been designed to achieve macroeconomic stability, improve the business operating environment and ensure the structures of local industries are internationally competitive.

The long-term benefits of all the policies are invaluable to sustainable economic growth and a higher quality of life that leaves no one and no place behind.

Housing development, which is largely supported by the informal sector and the diaspora community, is expected to continue on a growth trajectory.

Zimbabweans in the diaspora remit funds that are largely directed towards buying residential and commercial real estate.

Zimbabwe registered a 23-percent increase in diaspora remittances during the first six months of 2022 compared to the same period last year.

In its Mid-Term Monetary Policy statement, the Reserve Bank of Zimbabwe (RBZ) said total international remittances amounted to US$1,372 billion as of June 30 this year, which translated to an increase of 23 percent from the US$1,113 billion recorded during the same period last year.

Renowned property developer, Dr Tinashe Manzungu of TM group of companies said the Second Republic created a conducive environment that has seen a surge in diaspora remittances and renewed interest in property development by individuals and corporates.

Dr Manzungu, who is also the Zimbabwe National Chamber of Commerce (ZNCC) past president, said several housing projects are being implemented by both the Government and the private sector countrywide.

“The devolution agenda has seen provinces implementing infrastructural development projects which is inline with the National Development Strategy (NDS 1). The diaspora remittances have been key in the boom that we are witnessing in the sector,” he said.

Dr Manzungu said financial institutions are also coming up with various funding schemes to support infrastructural development projects.

He attributed the growth in the construction industry to the decision by Government to engage local companies in most of its projects after the companies demonstrated that they have the capacity.

“This has a ripple effect on economic growth as opposed to having foreign players coming for such projects who then reinvest in their respective countries. Other sectors within the construction value chain have benefited,” said Dr Manzungu.

Property developer and hotelier Dr Solomon Matsa said investing in the commercial and residential property market is ideal given the prevailing conducive environment.

“We are in a situation where we have been allowed to buy and sell properties, be it residential or commercial. We have locals that have been winning tenders to undertake big projects and this is benefiting downstream industries,” he said.

Dr Matsa, who is also the Business Economic Empowerment Forum (BEEF) president, said Zimbabwe’s commercial and residential properties remain a good value hedge for investment.

He said he was confident that the financial service sector will continue to improve giving locals more opportunities in terms of mortgage lending facilities. “What is interesting is that when it comes to individuals, many are using their hard-earned cash.

Some are relying on relatives in the diaspora. We also have financial institutions opening up mortgage avenues,” he said.

Dr Matsa urged potential investors to be wary of bogus agents in the sector.

City of Gweru’s acting director of housing and community services Mr Manford Gambiza said there are about 6 000 residential stands that have been opened up in Randolph and Mkoba 21 suburb.

“We have 472 stands under Randolph, 5 000 under Sheasham Investments, 1 000 under Cassa and Wackdrive. Other stands have been sold to individuals by private land developers, an indication that the real estate market is booming” he said.

Mr Gambiza said there are several private land developers in Gweru that are availing residential and commercial stands.

“We also serviced 1 000 stands for small to medium enterprises in Mkoba, Senga and Mambo suburbs as we also push property development as part of efforts to boost revenue inflows for the local authority,” he said.

President Mnangagwa is on record, saying local investors should not be left behind in terms of the country’s economic transformation, modernisation and industrialisation.

He said the various reforms implemented by the Second Republic have brought favourable regulations that guarantee the safety of investments and good returns, a development that is helping the country to achieve its “ambitious” but “achievable” economic and development goals.

The President said the Government commends efforts by financial institutions and authentic private property developers who have taken the initiative to increase investments in real estate.