Almot Maqolo, Staff Writer 
MASHONALAND Holdings (Mash Holdings) remains optimistic about the real estate sector, citing some encouraging patches of growth under the currently challenging economic environment.
This comes as the property developer has set out a five-year diversification strategy expected to boost its asset portfolio from US$80,7 million it recorded at the close of 2023 to US$120 million by 2027. This was a 4,9 percent increase from US$76,9 million realised in 2022.
In an interview with The Financial Gazette, Mash Holdings’ managing director, Kudakwashe Masundire, indicated that the real estate sector continues to mirror what is happening in the broader economy.
Sadly, the agriculture industry did not perform at its best during the current fiscal year when looking at the larger economic situation. And, it’s possible that developments in the agricultural field have an impact on industrial affairs as well.
When considering the overall state of the economy, it is unfortunate that the agriculture sector did not perform to its full potential during the current fiscal year. Additionally, it’s probable that advancements in agriculture also have an effect on industrial matters.
Zimbabwe’s agro-based economy suffered a massive blow from the underperforming agriculture sector due to a serious drought.
“But we see that there are pockets of positive development in the real estate space,” Masundire said.
“In particular, if we look at the out-of-office central business district (CBD), those property companies that made the first step to invest in CBD office space, have the potential to record superior returns there.” There has been a longstanding need for Mash Holdings to diversify away from the historically depressed CBD office and industrial property sub-sectors.
The retail sector also offers pockets of growth, driven by operators’ desire to be closer to their markets. They are seeking retail spaces that provide visibility along major arterial routes in key cities and proximity to their target audience. Accordingly, there has been a trend in some areas where residential properties are being repurposed to include smaller-scale retail facilities.
“So those will continue to be green shoots as the market continues to look at opportunities to grow outside of the traditional markets that real estate operators have traditionally operated in,” Masundire added.
Real estate investment trusts (REITs) are becoming more and more popular as a type of investment that may yield steady profits despite various obstacles, like poor occupancy rates in large office buildings.
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