Udcorp to build affordable houses in Plumtree, Hwange

THE Urban Development Corporation (Udcorp) is set to unlock its land bank in Plumtree and Hwange by initiating housing projects and partnering with esteemed private developers, a development aimed at reducing the national housing shortage.

Udcorp, a Government-owned entity, was established primarily to promote and support local authorities in planning and managing urban expansion and development.

It also strives to enhance the living standards of Zimbabwe’s citizens by constructing adequate housing and associated infrastructure.

The corporation also provides auditing services to local authorities.

Udcorp chief executive officer, Mr Joey Shumbamhini told Business Chronicle this week that aiding local authorities in housing and infrastructure development is one of the organisation’s fundamental responsibilities.

He noted that the organisation is in the process of implementing its transformation strategy approved last year in April and one aspect is unlocking its land bank and increasing land bank for more projects.

“We are planning to be involved in infrastructure projects and we have land in Plumtree, which we target to build three high-rise blocks of flats to reduce the accommodation backlog. We also have land in Hwange and in Kwekwe and we are earmarking to develop high rise buildings. We support government thrust for devolution to make sure development is spread across all provinces,” said Mr Shumbamhini.

Zimbabwe has a national housing backlog of around 1,5 million units and targets to deliver 1,2 million units by 2030 and part of the vision is to change the face of Zimbabwe by building modern houses that are sustainable and environmentally friendly.

The Government has set a target to deliver 220 000 housing units by 2025 leveraging on partnerships with the private sector and new technologies in the human settlement sector.

He said the broader aim is to get rid of land barons who buy land for speculative purposes.

“There are land barons who buy land for speculative purposes and at times duping prospective home owners and as Udcorp we want to bridge that gap. Therefore, Udcorp is calling on private and institutional investors and pension funds to engage in real estate.

“We want the organisation to be a conduit for the government to attract private investment in infrastructure development.”

He noted that they are mobilising resources from the private sector, local and regional financial institutions.

Mr Shumbamhini said several institutions in the private sector are looking for dependable investments, particularly in real estate such as pension funds and financial institutions.

Investing in property is a strategy that uses real estate as an investment to protect pension retirement savings from the erosive effects of inflation.

When inflation is high, the value of money decreases, which means that pension savings will not be worth as much in the future.

However, property is a good hedge against inflation because it tends to appreciate in value over time and this is because the demand for land and housing is relatively inelastic, meaning that it does not change very much in response to price changes.

As a result, the value of property tends to keep pace with inflation, or even outpace it in some instances.-chroncile