(HERALD) SA real estate company eyes Zim, Zambia markets
SA real estate company eyes Zim, Zambia marketsBusiness Reporter
SOUTH African real estate firm Chas Everitt International has announced its plans to open offices in Zimbabwe and Zambia. According to reports managing director of the group Mr Berry Everitt said the move was necessitated by the increased foreign interest in property in the whole of the Sadc region.
"Indeed, we are already getting enquiries for Zimbabwe properties to buy and to let and we believe our timing in opening a Harare office is spot on," Mr Everitt said adding they would look more at commercial properties.
Zimbabwe is second to South Africa in terms of infrastructure (African context) development and offers a greater scope to increase revenue, as the property is cheap in US dollar terms.
An investment analyst with a local bank said, "positioning a company’s presence through buying property is the best option at the moment particularly industrial and commercial property as it provides the necessary increase in value to offset the effects of inflation".
Normally an investor in commercial property can expect some growth component of return in addition to their income.
Typically these growth returns are in line with inflation and relatively modest.
However, while buying commercial property is a good hedge against inflation, Zimre Property Investment’s managing director Mr Edson Muvingi said rental growth in the country is subdued because of rental freeze and price controls as compared to the region.
According to a survey Angola was leading with a rent of US$100 per square metre and Zimbabwe lagging with US$1 per square metre. The average for the region was US$15 per square metre.
Mr Muvingi said: "Zimbabwe’s disparity with the other countries represented a huge opportunity for the group to improve its property performance".
ZPI says it would grow its retail and residential portfolio while Pearl Properties managing director Mr Francis Nyambiri said it remained the group’s desire to diversify the portfolio into leisure sector through new developments and acquisitions.
Labels: REAL ESTATE, SOUTH AFRICA, ZAMBIA, ZIMBABWE
posted by MrK @ 6:12 PM
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