Average rental yields increase

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THE opening up of business during the fourth quarter of 2020 drove rental yields increases, a wealth management firm has said.
First Mutual Wealth (FMW) said average rental yield among Zimbabwean property firms ranged between two and six percent for the full year to March 31, 2021, up from a band of 0,1 to three percent during the same period last year.

“Among the sectoral developments, we have observed rental yields as high at 12 percent within selected industrial sector properties. However, tourism based properties continue to suffer as occupancies have declined massively since the Covid-19 pandemic broke out in 2019,” FMW said.
Listed hotelier, African Sun, recorded occupancies of 40 percent in 2020 and indicated in a trading update that levels had declined to 14 percent as at March 31, 2021.
The company indicated that it would increasingly rely on domestic tourism for recovery in the short-term.