Online Reporter
Sikhulekelani Moyo
REAL estate experts have said the sector has the potential to uplift Zimbabwe’s economy, evidenced by the development of different properties in the outskirts of various Central Business Districts of major cities, where many businesses are moving to.
According to the Zimbabwe Investment Development Agency’s (ZIDA) fourth quarter 2024 report, the real estate sector is expected to attract even more investments this year. In the fourth quarter of 2024, the real estate sector had the highest projected investment value of US$2 billion, followed by the energy sector with a projected investment value of US$1,043 billion.
Real Estate Institute of Zimbabwe (REIZ) president, Mrs Joyline Mukundu-Murekachiro, said in terms of economic growth, real estate is a pillar, as evidenced by housing and construction, which has been a major objective of Vision 2030.
“Through real estate development across the country, a lot of investment has been attracted to Zimbabwe, as some investors and Zimbabweans in the diaspora are investing back home through housing and retail,” said Mrs Mukundu-Murekachiro.
“Hence, evidence of a lot of developments such as Highlands Park, Jacobs Park, Pomona Estate housing, Tynwald clusters, Glaudina, NMB, ZINWA, and several other office parks along Borrowdale Road etc, that have boosted economic growth through attracting foreign currency, creating employment, and improving returns amongst others.”
Cities and towns across the country, including Harare, Bulawayo, Gweru, Kwekwe, Mutare, Victoria Falls, and Zvishavane, are witnessing swift development, marked by the emergence of new commercial, industrial, and residential projects. The sector is on a positive trajectory, driven by long-term investment interests.
Meanwhile, on the partitioning of buildings in CBDs, Mrs Mukundu-Murekachiro, said many CBD buildings are dilapidated, and because of that, landlords are not getting the best rentals and returns.
She said most of the buildings now have dysfunctional lifts and plumbing problems with frequent blockages and bursts, and as such, cannot attract the best tenants.
“There is a need for landlords to either consider massive renovations of a capital expenditure nature, such as partitioning to smaller offices or shops, so that the space becomes marketable and affordable,” said Mrs Mukundu-Murekachiro.
“Unfortunately, some buildings have exhausted their expected useful life, and it is better to completely demolish and rebuild. We have seen some buildings collapsing in Harare downtown, and such areas are now clearly redevelopment zones ripe for reconstruction.”
She said most local authorities, starting with the City of Harare last year and this week, Rusape town council, have issued directives for landlords to spruce up their buildings as a way to improve aesthetics, add value, and reduce the risk of collapsing buildings.
Mrs Mukundu-Murekachiro said it’s unfortunate that most landlords have not been able to secure annual sinking funds for the purposes of attending to major renovations and capital works.
“The CBD is now prone to urban decay and in turn tenant flight to suburban shopping malls, with modern affordable space and infrastructure, abundant and secure parking space, hence augmenting well with the current clients’ needs, that is, convenient parking space,” she said.
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Peter Tanyanyiwa