Published: 23 January 2014

The lack of affordable mortgage finance has made properties in Zimbabwe more expensive than most countries in the region exacerbated by high country risk, the Estate Agents Council of Zimbabwe says.

EACZ chairman Mr Oswald Nyakunika said although most world economies were facing challenges, Zimbabwe's situation had been made worse by lack of investor confidence.

"Like most third world economies, we rely heavily on mining and agriculture. There is therefore need to promote foreign and local investment in those sectors. There is very little manufacturing to write home about.

"Unfortunately that puts drain on our limited resources. The poor state of the economy is affecting investment in all sectors to include property," he said.

Mr Nyakunika said the liquidity squeeze had a serious impact on businesses and their ability to meet current obligations including payment of rentals.

Mr Nyakunika said 2014 would be a difficult year for the property sector because of the lack of expansion, growth and a general squeeze on the economy.

A recent report by Knight Frank also said the lack of mortgage finance for the residential property market has stifled growth in the sub sector, while robust demand recently registered for retail space was in danger of decelerating due to a slide in consumer demand.

Affluent classes have continued to roll out new residential properties in the country, but the working class were unable to build new houses as financial institutions have only been able to provide expensive short term housing loans.
- bh24

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