AFRICA
BY ANGIE REDMOND
Where Are The
Property Markets
In Zimbabwe?
Z
imbabwe is home to the Victoria Falls, one
doubtful in an environment of weak consumer spending.
of the natural wonders of the world, the
The Mall of Zimbabwe, a major new development with
stone enclosures of Great
68 000 sq m of retail space, is due to see
Zimbabwe - remnants of a past
construction commence in early 2013,
ZIMBABWE
empire - and to herds of elephant and
with completion slated for 2014.
other game roaming vast stretches of
wilderness. It is also, slowly, on the
Industrial market
road to recovery economically, despite
Demand for industrial space has
many challenges, but where are the
reduced in recent years, as Zimbabwe
opportunities?
has become more of a consumer of
imported goods than a manufacturing
Office market
country. Vacancies are increasing
The take-up of office space has been • Population: 12.8 million
and rents are depressed. Tenant
poor as a result of the depressed • Language: English / Shona
viability is questionable in the current
& Ndebele
economic climate in Zimbabwe.
difficult economy, putting at risk the
• Currency: Dollar & Rand
Occupiers are struggling to meet rent
security of income streams. Industrial
• Main Export: Tobacco
and service charges, and the levels of
investments are considered the least
• Capital City: Harare
arrears are generally high. Vacancies
attractive of all sectors and the recent
• Inflation: 5%
have increased, in some buildings to
sales that have taken place have been
over 30%. More than a year after it
entirely for owner-occupation.
came on stream, the 12 000 sq m of office space in the
Joina City development in Harare remains over 50%
Residential market
unlet. Two significant office developments, the Celestial
The absence of long-term mortgage/loan financing has
Park and the Old Mutual project, with a combined
restricted residential market activity. Some financial
lettable area of 26 000 sq m, are currently underway
institutions have been able to secure external lines of
along Borrowdale Road and should be completed within
the next twelve months.
Retail market
Retail space remains in high demand, both in the CBD
and suburban locations. There has been an uplift in retail
prime rents for new lettings in Harare of about 60%
during 2012, but the sustainability of the achieved rents is
54
Offshore Handbook 2013
credit to support mortgages for private purchases, but
the secured loans have been for relatively small amounts
over short periods, eg 10 years at rates of 15-18% per
annum, thus making them expensive for borrowers.
Nevertheless, the market has seen price increases of up
to 25% during 2012.
RESOURCES
Bulawayo News
www.reimag.co.za