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Despite the effects of Covid-19 on the economy, real estate still offers great investment opportunities for both corporates and individuals. Investing in real estate offers benefits such as a good investment return, steady income, inflation hedge and capital values preservation/growth over time.
Opportunities for investing in property in the country are mostly in the form of Residential properties, Commercial (Office & Retail), Industrial & Warehousing units, Mixed Use, Mortgage Financing, Tourism & Hospitality, Specialized Properties, etc.
Here is some of the options to consider when looking at investing in Real Estate in Zimbabwe.
Houses, Flats & Apartments
The residential sector comprises freestanding single-family dwellings to large, multi-unit apartment buildings. Residential properties are usually for owner occupation or leasing to tenants for rental income. Flipping, subdivisions, cluster developments, land development into stands or residential units for sale at a profit is another investment strategy proving to be effective.
Agricultural Land
Many Zimbabweans are starting to see agriculture as a viable business especially for horticultural produce. There is also a great appetite for agricultural land by those nearing retirement.
Opportunities available in this sector include developing and selling Agro-residential plots through subdivision of large tracts of land.
Commercial Retail & Office
Growing population in urban areas due to Rural-Urban migration and densification is creating opportunities for suburban retail and services. Investing in this sector offers great opportunities especially in cases where pre-leasing can be secured and in new or existing neighbourhoods that have potential to sustain activity.
Location, demographics and income levels do play a critical role in determining opportunities for investments. Disruptions by Covid-19 also support improvements in activity at such centres as people seek to get their services within their neighbourhoods and reduce exposure to the Disease.
Acquisition of rightly priced buildings within the CBD for repurposing or refurbishment is also an investment strategy that can be considered. Low rise strategically located buildings within the CBD are a good opportunity for refurbishing and retail leasing which is experiencing high demand.
Industrial & Warehouse
Opportunities in this segment are available in the acquisition or development or redevelopment of light industrial properties and warehousing opportunities targeting e-commerce, logistics and agro-based businesses. E-commerce activity and logistics business is expected to rise as we see greater adoption of technology and online business. Platforms such as www.classifieds.co.zw allow individuals to order online and have their groceries delivered require warehouse storage for the products waiting to be delivered.
Agricultural output has also been growing over the years which is driving demand for warehouse facilities and the recent launch of ZMX, a commodity exchange platform bears testimony.
There is a lot of old and dilapidated stock for both industrial and warehousing properties in Zimbabwe which can be acquired, refurbished and leased by potential investors to earn rental income.
Hotel & Tourism
Despite the current situation, the prospects for recovery for the tourism sector are very high.
Opportunities are arising in spatial developments in Victoria Falls, Kariba, Binga, Hwange & Kanyemba and redevelopment potential in Harare CBD for alternative use. Zimbabwe remains a top destination when international travel resumes.
The country offers great opportunities for investing in property across the spectrum. You can search for available options in any of the categories on www.property.co.zw
