1. THE REAL ESTATE INSTITUTE OF ZIMBABWE ANNUAL WINTER SCHOOL (JULY 2015) (JULY 2015)

2. THE CHALLENGES & OPPORTUNITIES IN PROPERTY DEVELOPMENT IN ZIMBABWE

3. BACKGROUND Real Estate plays a significant role in any economy as it contributes significantly to national development through employment creation, infrastructure development (transport, water, sewer) and other various kinds of developments.

4. Real Estate is always: The first face of a nation Communicates national investment values Shows the status of the people and nation Hold strong national asset balance sheet through government, public and private sector real estate assets. According to ZIMASSET projections- Real Estate sector to contribute just over 16% to GDP growth.

5. THE CHALLENGES 1. Lack of National Policy to promote property development No incentives to developers and investors in any form Government should consider things like: Concessions for the specific type of developments Tax benefits Grace period Indigenization Law- counter instruct 2. Lack of Capital General capital for development Long term capital to allow capital intensive nature and long term projects Expensive money through short term 16-24% p.a

6. 3. Small market size and slow uptake rate Industrial – shrunk industry Commercial – companies closed and still closing Retail- small market, business failing Residential – small population, no jobs/finance, low salaries, low access to mortgages e.g. CABS Budiriro Project uptake cluster projects flats stands For developers its dangerous to borrow given this

7. 4. Lack of land for development and service struggle to get land – in private hands and its expensive no services- roads, water, sewer, ZESA- making development expensive, long and cumbersome for developers land around towns is government owned. Process to incorporate is long and lacks title for security.

8. 5. Environment Management Authority (EMA) fees prohibitive process long 6. Corruption in Public and Private sector Tenders Costings

9. 7. Developer Naivety, Poor Feasibility Analysis Lack of exposure of trends and buyer needs Lack of initiatives to new processes Same old way of Thinking and Doing

10. 8. Key Materials Shortages Bricks Sands (pit, river, stones) Gravel for roads Trusses

11. 9. Industry skills shortages Some best experience brains left for other countries at management level

12. Artisans are very few builders electricians plumbers pavers painters etc. No technical colleges to train

13. THE OPPORTUNITES

14. 1. Re-zoning and Subdivision

15. Looking for strategic locations for residential and commercial Re-zoning key areas with infrastructure services and engaging local authorities e.g. Newlands, Kamfinsa, Avondale Great potential for development

16. 2. Informal sector growth Meeting their needs- small shops, new centres

17. 3. New cities birthing and new zones Industrial Shops Estates

18. 4. Infrastructure development Roads, sewer, water Local authority level National level

19. 5. New processes of Construction Modern structures for modern clients (industrial, commercial, residential) Meeting clients’ needs

20. 6. Material supply centers Brick fields Quarry fields River and pit sand fields

21. 7. Strategic Partnerships Joint ventures with property owners Public Private Partnerships (local authorities, Ministry of National Housing and Amenities) other government arms

23. THANK YOU LET’S HELP DEVELOP OUR NATION