First Mutual Properties (FMP) says Zimbabwe's property market remains resilient as an investment class; however, pointing out that investment in other key infrastructure is required to sustain developments in the real estate industry.
FMP, listed on the Zimbabwe Stock Exchange (ZSE), is a real estate company that specialises in property development, management, and investment and is currently investing in prime properties in the major towns and cities of Zimbabwe.
Company secretary Mrs Dulcie Kandwe, in a trading update for the quarter to September 30, 2024, said residential stands, cluster houses, and high-rise flats continued to dominate investments in the sector.
"The sector's focus has been on developing owner-occupied office park-style buildings and converting suburban residential properties into offices along the major arterial routes.
"It is, however, noteworthy that investment in supporting infrastructure, including roads, power, information and communications technology, water, and sanitation, is required to sustain property market developments," she said.
During the period under review, FMP's revenue increased by 83 percent compared to the same period in the prior year, driven by rent reviews and the 2,82 percent increase in occupancy levels.
"Net property income increased by 92 percent during the period due to successful rental reviews leading to improved levels of rental income, which is the main component of the revenue," she said.
Mrs Kandwe said a total of US$0,280 million was spent on property maintenance during the quarter and the value of investment properties as of September 30, 2024, was US$124,679 million.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
She noted that the group has strategically positioned itself to generate sustainable shareholder value by pursuing projects at varying execution stages.
She indicated that the Arundel Office Park extension, whose scope involved building a double-story office block with a basement, providing a lettable area of 2 616.5 square meters, was completed during the quarter.
"A practical completion certificate for the building was received in October 2024. The identified tenant is expected to commence tenant fit outs in the fourth quarter of this year," said Mrs Kandwe.
She added that FMP managed the construction of a 388-bed student accommodation facility for the Chinhoyi University of Technology students, which was officially opened by President Mnangagwa on October 4, 2024.
"The group is a co-investor and project manager in the development of a mixed-use project in Zvishavane that includes duplex clusters, three-to-four-story apartments, and student hostels.
"The project is phased, with the current phase focusing on six duplex flats and 20 blocks of double and triple-story flats. The project is progressing relatively well," she said.
Looking ahead, Mrs Kandwe said the group was exploring opportunities in strategic areas to sustain its growth strategy.
She said property maintenance and modernisation would be prioritised while the group would strive to grow the occupancy levels and effectively manage working capital.
