Zimbabwe property sector faces bleak future

ZB Financial Holdings projects a bleak future for the property sector warning profitability could be weighed down by dwindling margins as the market struggles to pay rents.

ZB group chief executive officer Ron Mutandagayi said that property companies were under pressure to reduce rentals further as most businesses seek to contain their occupation costs.

He said, for instance, the occupancy level for ZB Properties is ranging between 60 and 70% being charged at a cost of around $8 per square metre relative to market rates of between $12 and $15 a square metre about two years ago.

The default rate, he said, was around 25% with generally some relations becoming somewhat strained as a number of tenants default periodically.