Investing In An Uncertain Real Estate Market

Real estate has long been an attractive investment due to its ability to generate wealth, build equity, provide passive income, hedge against inflation, and offer long-term reliability. However, these benefits are heavily influenced by market conditions and global economic factors. Investors must consider various micro and macroeconomic factors that impact property investments.

Below, we break down key trends shaping real estate today.

1. Impact of Digitization on Real Estate

The rise of technology has significantly disrupted the real estate market, influencing various sectors such as logistics, retail, and office spaces.

Key Changes Brought by Digitization:

• E-commerce Growth: Increased demand for storage spaces, parcel hubs, and sorting zones due to online shopping.
• Urban Distribution Centers: Logistics hubs in urban areas have become essential for efficient distribution.
• Automation & Robotics: New facilities are being built with automation in mind to streamline operations.

Digital Marketing & Transactions:

• Online Payments & Listings: Tenants and buyers now search for properties and make payments online.
• Virtual Showdays: Real estate firms like Leengate host virtual property tours on platforms like Facebook to reach local and international buyers.
• Digital Marketing Strategies: Investors and landlords must embrace digital advertising and online platforms to attract tenants and buyers.

Caution for Online Transactions:

While digitization brings convenience, it also presents risks. Investors must conduct due diligence before committing to transactions.

Best Practices:

• Always request a copy of the title deed.
• Verify certificates of compliance, draft sale agreements, and layout plans before making payments.

2. Shifting Lifestyles and New Housing Trends

A growing trend is moving away from the traditional preference of living near the CBD. Instead, buyers are favoring self-contained gated communities that offer:

• Security
• Amenities (shopping centers, police stations, local authority offices)
• A balanced work-life environment

Examples of Popular Gated Communities in Harare:

Arlington Estate (Airport Road)
Twenty-dales

Rise of Small Shopping Malls & Office Parks:

CBD decline: Businesses are shifting to suburban shopping centers due to better parking, convenience, and modern infrastructure.
Office Parks Over CBD Spaces: Many firms now prefer office parks over traditional CBD buildings, leading to:

• A rise in renovated residential spaces turned into offices.
• Increased investments in suburban commercial zones.

3. Global Real Estate Trends & Their Impact

Changing Office Dynamics

• Hybrid Work Model: More firms are adopting a 2-3 day office workweek, reducing demand for traditional office spaces.
• New Purpose for Offices: Offices are becoming spaces for socializing, collaboration, and training, rather than everyday work.
• Prime vs. Secondary Assets: High-quality office spaces in central locations will retain value, while older secondary assets will decline in demand.

Conclusion

The real estate market is constantly evolving, and investors must adapt to these changes to stay ahead. Digitization, shifting residential preferences, and global work trends are shaping investment decisions.

Key Takeaways for Investors:

• Embrace digital tools for marketing and transactions.
• Invest in suburban shopping centers and office parks as the CBD loses dominance.
• Consider hybrid office models when investing in commercial properties.
• Ensure proper due diligence before making financial commitments.

By keeping up with these trends, investors can make informed decisions and maximize the potential of their real estate investments.

Contributed by Leengate.