Entrepreneurship Zone: 09 May 2023 :: Zambia real estate: Five trends and opportunities unveiled

Tue May 9 04:41:06 CAT 2023

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com/> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Entrepreneurship Zone: 09 May 2023 ::  Zambia real estate: Five trends and
opportunities unveiled

*          

How we made it in Africa recently spoke to Inutu Zaloumis, owner and
managing director of Pam Golding Properties Zambia, about the country’s real
estate trends and opportunities. Here are the main takeaways from the
conversation.

1. Middle-income residential market one of the most promising segments

Lusaka’s residential real estate landscape comprises two distinct markets:
one catering to permanent Zambian residents with properties priced in the
local kwacha currency, and another targeting expatriates, who typically pay
in US dollars. High mortgage interest rates, ranging from 16.5% to 23%, have
given rise to a robust self-build market, according to Zaloumis. Zambians
often purchase plots of land and gradually construct their homes over a five
to seven-year period. During this time, they reside in rental properties,
bolstering the rental market.

Zaloumis sees potential in developing gated communities that offer serviced
land plots, complete with water and power infrastructure, catering to the
middle-income self-build market. These residential estates can be
strategically positioned on the outskirts of the city, where land prices are
more affordable. “Culturally, Zambians love to build; that is what they do.
So the residential land sales market is actually performing very well,” she
notes.

While the local currency rental market remained stable throughout the
Covid-19 pandemic, the expatriate segment, which primarily focuses on
upscale areas in Lusaka, experienced a downturn. Many expatriates left
Zambia during the pandemic, and not all returned due to work-from-home
arrangements. In many cases, those who did come back had lower housing
budgets, leading to a decreased demand for high-end properties. Even some
embassies downscaled their operations. Zaloumis notes that an oversupply of
housing stock catering to the expatriate market already existed prior to the
pandemic.

Regarding residential property sales, property valuations have stayed
relatively flat in recent years, as incomes came under pressure. Developers
who priced their properties in US dollars have also experienced challenges
due to the depreciation of the kwacha, which has lost approximately half of
its value against the greenback over the past five years.

2. Livingstone: An emerging hotspot for retirement properties

Pam Golding has noted a surge in property inquiries for Livingstone, a
southwestern Zambian town located near the Zambezi River, adjacent to the
Zimbabwe border, and serving as a gateway to the renowned Victoria Falls.
Zaloumis attributes the rising interest primarily to foreigners from abroad
searching for retirement properties. She points out the strategic advantages
of Livingstone, such as the presence of an international airport and its
relative proximity to South Africa, which is beneficial for those seeking
medical care.

3. Zambians abroad investing in local property

Zaloumis highlights strong interest among Zambians working abroad to invest
in local real estate, primarily with the goal of eventually retiring back
home. These individuals often develop rental properties while residing
overseas and frequently return home to manage their building projects.
Additionally, some are interested in purchasing completed properties.

4. Potential in student accommodation

Student accommodation presents a promising opportunity, given Zambia’s
youthful population with a median age of around 17 years. The recent
introduction of free primary and secondary schooling in the country is
expected to increase the demand for tertiary education for the foreseeable
future.

5. Industrial and retail property under pressure

Warehousing and other industrial properties have struggled in recent years,
with tens of thousands of square metres of vacant space available on the
market. Zaloumis attributes the excess vacant space to significant market
speculation. For example, Zambia’s Food Reserve Agency (FRA) – which purpose
is to ensure the country has sufficient food during times of need – used to
lease a substantial amount of warehouse space in Lusaka to store grain. Many
speculative developers constructed warehouse spaces hoping to secure
contracts with the FRA. However, in an effort to reduce costs, the FRA
decided to relocate its storage facilities closer to the farmers in rural
areas, leaving numerous warehouses in the Lusaka area unoccupied.

Zaloumis notes that the most successful industrial properties are those
that are owner-occupied or purpose-built facilities, where companies rent
industrial space specifically constructed to their specifications by
professional developers.

Lusaka’s retail market has hit saturation, driven by a significant increase
in shopping centre developments over the past decade. Zaloumis contends that
the city is currently unable to accommodate additional large shopping malls.
Nonetheless, there may still be potential for smaller convenience shopping
centres in select areas and cities.

Inutu Zaloumis, owner and managing director of Pam Golding Properties
Zambia

- Howwemadeitinafrica

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
bulls at bullszimbabwe.com <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe>
Tel: +263 4 2927658 Cell: +263 77 344 1674

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 215075 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230509/30e02a16/attachment-0001.bin>