Business

Real estate sector needs long-term funding – ZIEA

TRYNESS MBALE, Lusaka
THE Zambia Institute of Estate Agents (ZIEA) says the real estate sector needs long-term financing to  alleviate the current housing deficit.
Currently, most of the major real estate developments are in the hands of foreigners who have access to affordable long-term capital investment to contribute to Zambia’s housing deficit of about two million units.
ZIEA chairperson Saul Kiwepinde said the key driver of real estate investment is long-term financing.
Mr Kiwepinde said in response to a press query on Monday that the issue of long-term financing is one that Government needs to deal with quickly if citizens are to be part of the sector’s development.
“The key driver of real estate investment is long-term financing, but this does not exist in Zambia and therefore, there is very little opportunity for locals to fully participate in the sector,” he said.
Giving an overview of the 2014 performanc, Mr Kiwepinde said the sector witnessed a number of investments in both commercial and residential sub-sectors in and around the major cities such as Lusaka and Kitwe.
Mr Kiwepinde said there has been more investment in the sector, adding that ZIEA is yet to evaluate the real contribution to gross development product.
On the future of the sector, he said the outlook is bright because of the huge investments in roads, which is one of the key drivers of real estate development.
Mr Kiwepinde said the increase in budgetary allocation in 2015 to road construction and power generation will cause a significant shift in the sector in the next five years.
ZIEA anticipates that more investors are likely to come on board especially when there is consistence in tax policies, regarding the real estate sector.

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