30 November 2012

Zimbabwe: Invest in Real Estate - Govt

GOVERNMENT has called for investment in real estate in order to help reduce the housing backload.

Addressing delegates that attended the Real Estate summit on Wednesday the Secretary for National Housing and Social Amenities Mr David Munyoro said there are currently 2 million people on the housing waiting lists of local authorities across the country.

"Available statistics indicate that by 2008 the housing backlog was projected to increase to 1 250 000 housing units and it is now estimated to be more than 2 million housing units since no meaningful projects were implemented to reduce the backlog from 2004 to 2011," he said.

He added that statistics from Zimstat indicate that out of 11,9 million people only 6 783 Zimbabweans own houses.

Real estate development is an economic stimulator and most economies that are emerging from a recession normally use the construction sector to stimulate economic development because of its downstream multiplier effect.

In Zimbabwe, real estate is facing challenges of lack of long-term financing and affordability.

Lack of funding has affected housing development as Government through the national housing fund has been the traditional financier of long term capital projects.

The summit was attended by representatives from countries like Angola, United States of America, South Africa, Kenya, Malawi, Botswana and Namibia who showed great interest in investing in the national housing real estate.

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