malvernmugadzikwa
Online Reporter
Stakeholders in the real estate and construction sectors have bemoaned local municipalities’ failure to provide bulk infrastructure for various ongoing housing development projects.
Observers say self-provision of bulk services by land developers has been pushing up construction costs, which ultimately rest on home seekers, as they have to pay more for land per square metre.
Addressing the ZimReal Property Investment Forum recently, Terrace Africa development manager Ms Charity Chirume said:
“The permit (from local council) says you have to put in your own access ports, own sewer, own water connection, and all these infrastructure developments are putting pressure on investments, but the council is supposed to be providing these.
“We feel like we are being penalised for these developments. We need collaborative efforts.
“Maybe council should say provide for this road, but you don’t have to pay for the approvals; why am I paying for approvals when this road is going to be handed over to council eventually, after which I am told to maintain, regardless of the infrastructure we would have setup?”
ZimRe Property Investments (ZPI) managing director Mr Edson Muvingi said failure by local municipalities to provide basic infrastructure is increasing the final land cost after improvements.
“The primary responsibility rests with the council, but we now assist them to deliver what they should otherwise have.
“The private sector is providing public infrastructure,” he said.
“This has seen a rapid increase in square metre price for land.
“We look at how to recover our capital, and consequently we bill it in in the final land cost so that we recover the money with profits.”
Online Reporter