Recovery in real estate projects spurs demand for building materials

By Stanley James, Business Editor

The revival of Zimbabwe’s real estate sector has seen a rise in demand for building materials since the beginning of the year.

This Friday Construction Industry Federation of Zimbabwe president, Mr Emmanuel Chimedza presented key indicators of the industry’s growth path this year. 

He noted that while there has been a steady rise in terms of uptake of fresh projects due to government’s increased infrastructure developments, the real estate sector has also emerged as a key player in the construction industry value chain.

The move, according to Mr Chimedza, has resulted in a rise in demand for building materials.

“While the real estate sector had endured COVID-19 induced stress, one can see new developments on the industry and residential side that are having a positive impact on the supply side of raw materials,” he said.

Despite the huge demand, the construction sector is, however, bemoaning high cost structures which threaten profitability.            

“The high cost of production is scaling down our ability to break even. Furthermore, most of the inputs are imported and this is also threatening profitability.”

Government, through the Zimbabwe Stock Exchange, is prioritising investments in the property sector, with efforts to establish a real estate investments portfolio on the cards.                 

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