eBusiness Weekly
Enacy Mapakame
Activity in the real estate sector is expected to remain vibrant in urban centres where densification will drive activity as demand for modern developments continues to soar subsequently transforming cities.
From densification to adoption of recycled materials, cluster developments and smart homes, are among the trends that are seen shaping the property sector going forward, with some already being implemented.
West Properties executive chairman, Ken Sharpe, said densification will see great transformation of urban centres with modern developments already being seen especially in Harare in line with global trends.
Densification entails land development that takes place within existing communities, making maximum use of the existing infrastructure instead of building on previously undeveloped land. The concept has, over the years, become a central method of achieving smart, sustainable cities across the world.
There has been land left lying idle in cities, but this is changing significantly with property developers taking it up for development of gated communities for instance and clusters homes.
This comes as city fathers are also seeing the need for densification model to meet the increasing demand for residential space, especially in Harare where desperate home seekers are opting for areas not suitable for residential habitation such as wetlands.
“In 2023, expect to see densification as modernisation of real estate continues to drive the sector with clusters of enclosed estates and gated communities sought after. There has been considerable mushrooming of construction works across all property classes over the past five years, for example, clusters and gated communities, small shopping centres such as Village Walk and Highlands Park and developing specific client purpose use or fit for purpose warehousing facilities” Sharpe said at a Global Renaissance Investments (GRI) Zimbabwe Infrastructure Investment Summit held in Victoria Falls recently.
However, like other sectors of the economy, the property market is not spared from global shocks – for instance the conflict in Eastern Europe and the Covid-19 pandemic and their impacts on economies.
According to the Africa Report 2022 / 2023 by Knight Frank, the hyperinflationary environment and the depreciation of the Zimbabwean dollar have emerged as major hurdles for the country’s real estate market, especially residential.
This comes as disposable incomes continued to decline since the outbreak of the pandemic while sellers are looking for foreign currency for their properties.
According to the report, peers – Algeria have also been hardest hit by the adverse impacts of the Covid-19 pandemic and other global shocks with the residential market remaining sluggish.
In Zimbabwe, sellers continue to insist on payments in US dollars, in response to the depreciating Zimbabwe Dollar.
Sharpe said the global cash crunch applied to both buyers and property developers.
“There is demand to continue densification in urban areas and the authorities are doing very well in approving zoning of these in terms of residential cluster developments and we now need high rise residential properties in the capital. The market is shifting from occupying single residential homes with large land and instead downsizing to smaller modern homes within a gated community. Properties along main roads are undergoing change of use to allow commercial use of the offices that are moving away from the central business district,” he said.
He, however, added that the fathers’ strict compliance policy had led to improvement in the quality of developments, resulting in increased value of developments and reduced risk.
While the housing challenges continue to haunt the average citizen, the Government has been cognisant of these challenges which have seen the national housing backlog hit nearly two million.
But the trajectory towards the attainment of Vision 2030 revolves around providing human settlements, which meet the aspirations of the Zimbabwean people, while addressing affordability and modernisation aspects.
The housing delivery pillar within the National Development Strategy (NDS1), is expected to deliver 220 000 housing units by 2025, through collective efforts from stakeholders and all parties involved in human settlements delivery.
