Staff Writer 
FBC Holdings (FBC), a diversified conglomerate, has resolved to focus its real estate projects on expanding its asset base in high- and medium-density suburbs, aiming to tap into the growing market demand in this segment.
Zimbabwe’s ongoing currency volatility has prompted investors to shift from traditional savings accounts to banking in real estate assets. Consequently, demand for renting or purchasing houses in medium and high-density areas has risen significantly. In response to this trend, the chairman of FBC, Hebert Nkala, stated that the group has decided to centre its real estate efforts on this market segment to enhance income generation.
“Demand remains firm for high- to medium-density houses. Through our Building Society, we are focusing on this segment given the strong demand,” said Nkala in the company’s half-year financial results ending 30 June 2024.
“Our project pipeline spans several cities and towns, including Zvishavane, Marondera, Hwange, Masvingo, and Harare,” he added.
Experts predict that the real estate sector will continue on an upward trajectory this year, offering stable and solid investment returns compared to other options. However, the commercial property segment, particularly in the Central Business District (CBD), has struggled due to high rental costs, the proliferation of informal malls, and street vendors occupying pavements.
This situation has led many large corporations to relocate their offices and headquarters to low-density residential areas.
“The commercial office market is, however, experiencing subdued activity in the CBD, as businesses increasingly favour locations outside the Central Business District to minimise operational costs,” said Nkala.
Despite this, Nkala noted that small- and medium-sized enterprises (SMEs) have emerged as key drivers of demand for office space in the CBD, particularly within the new malls under development.
In the period under review, FBC Holdings reported total income of ZiG2,1 billion, bolstered by growth in core revenue streams such as net interest income and insurance services. These areas made an increased contribution to the group’s overall performance.
