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Wondering about the value of your property depreciating in value? That is an understandable question especially since Zimbabwe's real estate market is known for its unpredictability where property values fluctuate due to various economic, political, and market factors. To minimise the risk of a drop in property value, it's crucial to understand these factors and stay informed.
Economic Factors:
- Economic instability and inflation can lead to a decrease in property values.
- Currency fluctuations and exchange rate volatility can impact property values.
- Interest rates and monetary policy changes can influence borrowing costs and property demand.
Political Factors:
- Political uncertainty and instability can affect property values.
- Government policies and regulations can impact the real estate market.
- Changes in tax laws and regulations can influence property ownership and investment.
Market Demand:
- Location and property type influence demand and value.
- Over supply or under demand can impact property values.
- Demographic changes and population growth can affect property demand.
Property Maintenance:
- Proper maintenance and upkeep can preserve property value.
- Neglect and disrepair can lead to a decrease in value.
- Regular renovations and upgrades can enhance property value.
Diversification:
- Spreading investments across different asset classes can minimise risk.
- Diversification can help protect against market fluctuations.
- Investing in different property types and locations can reduce exposure to market volatility.
Market Outlook:
- The Residential Real Estate market in Zimbabwe is anticipated to achieve a worth of US$69.34bn by 2024.
- By 2028, it is expected to witness a negative annual growth rate (CAGR 2024-2028) of -3.96%, resulting in a market volume of US$58.99bn.
To navigate Zimbabwe's dynamic real estate market, property owners must stay informed and adapt to changing conditions. By understanding these factors and taking a proactive approach, property owners can minimise the risk of a drop in property value and make informed investment decisions.
