house.jpgStakeholders in real estate say the sector is set for a rebound this year owing to improved saving culture in the country which enables financial institutions to extend more long term loans.

 

The real estate sector has been facing a number of challenges in the previous year ranging from unavailability of lines of credit to sprouting bogus agents resulting in a subdued market.

Stakeholders in the sector say hopes are high that financial institutions will extend long term loans for the growth of the sector.

A chief executive officer of a local property development company, Mr. Samuel Mudavanhu said the saving culture that is prevailing on the market will result in increased mortgage finance for the property market this year translating to high activity on the market.

“We hope that this year financial institutions will start extending long term loans which is likely to assist most workers in the country whose salaries are low in terms of acquiring houses,” said Mr. Mudavanhu.

A managing director of a property company, Mr. Rutendo Rutendo said shortage of mortgage finance has been a contributing factor to sluggish performance of the real estate sector, adding that stakeholders are optimistic that this year will bring better fortunes for the industry.

“We are very optimistic in recording a phenomenal growth in the sector on the back of recovering economic spectrum. The growth of the sector is also hinged on the overall performance of country’s economy,” Mr. Rutendo said. 

The fiscal authorities projected a growth rate of one percent this year and it is expected to benefit from the US$31.4 million allocated to housing projects in the 2011 National Budget.