Property redevelopment frenzy hits Harare

For the last couple of weeks, real estate investment consultant Kura Chihota, has been posting pictures of properties that are being redeveloped and repurposed.

From the frequency of his social media postings, it seems there is at least a mini-boom in the property sector.

President Mnangagwa has also had a fair share of grand openings of new properties.

In February he commissioned Aspire Heights Development at Aspindale Park.

This past Wednesday he officially opened FBC Bank’s Fountaine Ridge housing project in Kuwadzana.

Mid-December, he officially opened Madokero industrial, residential and shopping mall.

These developments are just a tip of the iceberg, at least in Harare.

In an interview, Chihota said the property frenzy reflects “dollars attracting dollars” with the real estate sector giving very good returns.

He said property of less than 100 sqm is attracting US$15 per square metre in rentals, while bigger properties are attracting as much as US$20 per square metre.

Chihota, however, said most of the properties are not entirely new, but just undergoing redevelopment.

It’s like musical chairs, he said.

Amid growing demand, property owners are making the most of the available space. Land uses are being changed.

One big property is redeveloped into multiple rental units or apartments.

Rentals are good and people are realising value, Chihota said.

Realtor, Simba James, shared the same sentiment and said there is a lot of activity taking place in the property sector for
both commercial and residential development.

“There is a huge demand and gap and most projects are selling out,” James said.

According to an Africa Offices Dashboard Q4 2022 Report by Knight Frank, satellite cities continue to attract more occupiers as businesses seek relatively affordable suburban offices, and developers are responding to this shift in geographic demand.

By why this trend, why now?

The Harare central business district, though going through a revolution of its own, is not conducive for some, according to Chihota.

“The CBD is a hostile environment with all the vending and clamping of cars. People want to do business in an area where the look and feel is good.

So most people are modernising their buildings, improving space and with better amenities, according to Chihota.

The market is definitely not a one size fits all. Some are building clusters for once-off capital profit while others are building rental units which will give cashflows over time.

There is a shortage of modern volumetric warehousing with dock-level loading in Harare, according to a Twitter post by Chihota.

There must be demand too for space for food courts that continue to spring up in various locations.

Gone are the days when one needed to go all the way to the CBD to a food court or fast food restaurants. They now have a presence in outside CBD locations and growing.

Business seems brisk, by the look of things.-ebusinessweekly4