New trends develop in Zimbabwean property market sector
The Zimbabwean property market is expected to see distinct trends unfold across different sectors in 2024, according to a report by Integrated Properties.
The residential sector is poised to prioritise affordability, driven by rising demand for smaller units with flexible payment options.
This trend will be fueled by increased Government support and greater involvement from the private sector.
However, the report notes a widening gap between supply and demand, particularly in expanding areas around major cities, where development is concentrated.
Transactions in the residential sector are expected to remain limited in 2024, similar to 2023. The report suggests that most transactions will involve the sale of residential plots and high-density properties, typically priced around US$30 000.
Interestingly, high-density properties are seen as offering higher returns on investment compared to their low and medium-density counterparts.
Investing in land development and housing units within these areas, with the guidance of qualified professionals, is presented as a potentially lucrative option.
The outlook for the commercial sector is mixed.
While rental growth and demand for space are observed, a significant trend is the shift of large corporations towards owning their office spaces, particularly outside the central business district (CBD). This trend is counterbalanced by Government agencies consolidating their presence within the CBD and the continued demand for small office spaces by small and medium-sized enterprises (SMEs).
The report raises concerns regarding the proliferation of “cubical” shopping malls in the CBD, suggesting this might not be conducive to a healthy market.
It emphasises the importance of “careful design and expert advice” when planning retail spaces to ensure their long-term viability.
Overall, the Zimbabwean property market in 2024 is expected to be characterised by a focus on affordable housing, a mixed outlook in the commercial sector, and potential concerns in the retail segment regarding oversaturation and ineffective design.-ebusinessweekly
