Property still undeveloped — analysts

hamper property development.
It also noted the market-driven income growth is slowing down as the gap between regional rent per square metre and local rates is closing.
“The view in the market is that there is still potential but liquidity constraints continue to hamper property development,” said Invictus.
The report, however, said some property firms with exposure in the office and retail spaces have recorded improved performance post-dollarisation.
Rent reviews were a major revenue booster for companies in 2011.
Furthermore, the planned property development projects are likely to enhance the property portfolios and potentially boost the income streams.
“Except for Dawn Properties (among property companies listed on the Zimbabwe Stock Exchange) which has been adversely affected by the depressed hospitality sector, the other property players — Mashonaland Holdings, Pearl Properties and Zimre Properties Limited — currently offer attractive valuations.
The three have also started to pay a dividend, on the back of improved performance.”
Eight of Dawn properties are leased to hospitality group African Sun. 
Among the property counters on the ZSE, Dawn is the only one still operating with depressed margins. Dawn and African Sun are, however, reviewing rentals and restructuring their lease agreement.
Others have returned to profitability with some embarking on new projects.
“We anticipate a steady improvement in earnings backed by revaluation profits.
“In a slowing world economy (and) continuing financial crisis, investors place a premium on income and yield and are cautious about companies that  invest in expansions that could take years to deliver returns.”
In the region, the increasing global focus on Africa, due to high growth rates has paved way for attractive opportunities in property investment.
“Africa’s current prominence as the new investor destination is further enhanced by a demand and supply imbalance. This exists in many retail, commercial, industrial and residential property markets.
“The demand comes from the rapidly growing middle class and a huge retail shortage because retail infrastructure has not kept pace with general economic development.