Demand for space in Harare’s built-up areas growing
Demand for space in already built-up areas of Harare, the country’s capital and largest commercial centre is on the increase according to experts in the real estate sector.
The demand stems from both individual and institutional developers looking for areas that are already developed with all the key necessary amenities, putting a premium on their price tag.
The capital is seeing quality housing developments, especially in the Northern suburbs where gated communities and cluster developments are becoming common.
This also feeds into initiatives towards smart land allocation in urban centres where analysts have called for densification where a smaller piece of land provides more in line with modern global trends.
This is in contrast to a single household occupying a vast piece of land. The model also addresses land shortages.
“The search and demand for quality housing opportunities in built-up areas is on the rise,” said Firmcare Construction Private Limited.
“Quality investments in areas such as the north and western suburbs of Harare are attracting significant demand from individual and institutional investors alike,” said the property development company.
Several projects are currently underway in areas such as Mt Pleasant, Avondale, Strathaven and other areas where open spaces are being utilised and turned into gated communities or commercial properties.
Firmcare Construction themselves has a Real Estate Development (RED) Fund which seeks to provide return and liquidity to investors by investing in real estate development.
According to the construction company, it will achieve its returns by picking real estate assets “showing early signs of distress (diminishing capacity to provide liquidity to owners), re-design the asset and develop residential or commercial property in demand.”
“We seek out institutional investors looking to reduce their currency risk in the short to medium term. Our value proposition is ideal for small, distressed funds looking to build their capital. Schemes/funds which are under distress can build their capital in the short term.
“The Fund will pay returns in USD or at the prevailing rate where agreed. This investment allows investors to mitigate the negative impact of high inflation in the short to medium term,” said Firmcare.
The company’s pilot project located in Mt Pleasant on The Chase is 70 percent complete. The project comprises thirteen semi-detached townhouses and the units are on the market. Completion is scheduled for March 2024.
“Our model strives to maximise investor’ return on investment … Our projects are targeted to last between 12 to 24 months. Investors can exit at this point. These short turn around investment periods are designed to mitigate the impact of potential long-term macroeconomic changes that may affect the business environment,” said the company
The company also has other proposed developments for Hogerty Hill, Pendenis and another one in Greendale comprising 88 apartments, a community swimming pool and other social amenities.
-herald
