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Zimbabwe's property market has yet to reach its full potential due to a fluctuating economy and other factors. However, the real estate sector offers a compelling opportunity for investors seeking diversification and growth. According to the Zimbabwe Real Estate Satista Report 2024, the sector is forecasted to expand by -0.80% (2024-2028), leading to a market worth US$104.20 billion by 2028.
Despite this potential, many asset management firms in Zimbabwe struggle to navigate the complexities of real estate investment. The misconception that real estate can be approached with the same standardised methodologies as other asset classes is a misjudgment that can lead to missed opportunities and suboptimal results.
To fully capitalise on the advantages of real estate investment, asset management firms in Zimbabwe must establish strong collaborations with real estate experts or develop extensive in-house knowledge. By partnering with real estate experts, asset managers can tap into invaluable insights and expertise, enabling informed investment decisions and unlocking the full potential of real estate investment in Zimbabwe.
Key benefits of collaboration include:
1. Enhanced market understanding
2. Informed investment decisions
3. Risk reduction
4. Access to local expertise
5. Improved returns
By fostering partnerships between asset managers and real estate specialists, Zimbabwe can:
- Attract foreign investment, with real estate investment accounting for up to 20% of foreign direct investment in similar emerging markets (UNCTAD 2022)
- Drive economic growth, with the real estate sector contributing up to 15% to GDP in developed economies (World Bank 2022)
Embracing collaboration and expertise will be crucial in navigating the complexities of this asset class, ultimately yielding optimal returns for investors and contributing to Zimbabwe's economic growth.
