housing cooperatives.jpgPlayers in the properties sector say the industry has experienced slow growth since the beginning of the year due to liquidity constraints hampering development and sale of property.

Although the first five months of the year have witnessed a significant increase in the development of both commercial and residential properties, the pace of development is slower than high demand currently prevailing.

Land developers who spoke to ZBC News said while they have increased land under construction to meet growing demand, shortage of money on the market is limiting them from undertaking big projects, which require huge capital injection.

“Definitely, there is significant recovery but the only snag is the shortage of money for to undertake bigger and capital intensive projects. On the commercial side, there is demand for offices in town but we are not able to meet that demand,” said one land developer.

A significant number of buildings under construction in the central business district and residential areas are the result of individual initiatives.

Local banks and building societies resumed mortgage lending last year to purchase building plots and houses.

However, analysts say conditions which stipulate that those eligible should be earning at least US$1 000 per month cannot be met by ordinary Zimbabweans.