Landlords run out of options

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FIRST Mutual Properties (FMP) says subdued economic activity in Zimbabwe, and the rising rate of property voids, is forcing landlords to charge uneconomic rentals.
This comes as the country’s commercial and residential property sector is reeling from the double whammy of a long-standing economic crisis and the worsening effects of the Covid-19 pandemic.
Elisha Moyo, FMP’s board chairman, this week said his company’s ability to charge “economic rentals in line with inflation and execution of development projects”, has been “constrained”.

“The absorption of space has been insignificant resulting in continued excess supply. There is also pressure to realign the rental levels to inflation and exchange rates in order to maintain viability.
“However, most property owners and agents were cautious in lease negotiations due to excess supply of space and the Covid-19 induced market risks, where the adoption of remote working and low economic activity heightened uncertainty for tenants,” Moyo said in a statement accompanying FMP’s results for the six months to June 2020.