Emmerson Njanjamangezi, Group Features Editor 
MASHONALAND Holdings (Mash Holdings) says the property market remains hamstrung by lethargic demand across all sectors of the market owing to low economic activity in the economy.
The property investment and development firm said whilst the Covid-19 restrictions eased during the half year ended June 30, 2022, the prevailing global headwinds and internal fiscal and monetary policy issues have delayed full economic recovery.
“Despite the faltering economic activity, the occupier sub-market’s retail and industrial sectors have remained relatively resilient. The tourism sector has also been positively impacted by the easing of Covid-19 restrictions, resulting in an improvement in hotel occupancies. The office sector however remains subdued, particularly in the CBD, with new lettings being recorded through innovative solutions providing flexible and miniaturised office space,” Mash Holdings chairperson Grace Bema said in a statement accompanying financials.
Bema said the development submarket is the most affected as construction costs remain on an upward spiral in both currencies.
“As a result, the sub-market continues to be dominated by residential property projects and a few small-sized commercial developments. The high-interest rates on mortgage lending, coupled with declining disposable incomes however continue to act as hindrances against further growth in residential sector developments,” she said.
“Middle to high-income residential properties continue to present investors with an avenue for value preservation as the inflation trend remains uncertain. The high demand against a static supply has seen property values in this market segment going up.”
For the half year under review, Mash Holdings’ revenue increased by 51 percent to $709 million from $471 million recorded in the prior period attributable to periodic rent reviews and improved occupancy, which grew from 79 percent to 83 percent.
The group’s net property income decreased from 83 percent to 78 percent due to increases in property expenses.
Property expenses increased by 98 percent driven by maintenance works that the group continues to implement to ensure the continued quality of space to attract and retain tenants. Maintenance works were also carried out at Chiyedza House to support the growth of the flexi-leasing facility.
Operating profits increased by 204 percent from $263 million to $800 million driven by foreign exchange gains of $503 million realised on foreign currency balances held by the group following receipt of deposits on the disposal of Charter House.
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