Zimbabwe's property market is being hampered by a severe shortage of long-term mortgage finance, according to Mike Juru, chairperson of the Real Estate Investment Trust REIT.
Juru stated that the inability to offer 25-year mortgages is a significant structural barrier to growth, preventing developers from fully capitalizing on the increasing demand for housing and commercial properties. He emphasized that property is a long-term investment requiring long-term financing, which is currently unavailable. This situation forces the property market to rely heavily on cash buyers, corporations, and wealthy investors, limiting its broader economic contribution.
Economists suggest that robust mortgage markets stimulate investment across various sectors, including cement, steel manufacturing, banking, insurance, engineering, and construction. Juru highlighted that restoring investor confidence necessitates not only expanded bank lending but also long-term certainty regarding Zimbabwe's monetary framework. He welcomed recent assurances from the Reserve Bank of Zimbabwe concerning the future of the Zimbabwe Gold ZiG currency, noting that policy consistency is crucial for rebuilding trust among lenders and investors.
Industry executives argue that confidence will ultimately be measured by banks offering affordable mortgages with repayment periods comparable to those in more developed markets, which would unlock billions in investment, expand home ownership, and deepen capital markets.
This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
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