ZPI Chairman, Ambassador Don Mothobi, said that short of appropriate debt finance to fund property development projects, the property sector could be "doomed".
"The property operating environment in Zimbabwe can be summed up as one that is plagued by illiquidity which has affected free flow of rent exchange between landlords and tenant resulting in increasing debtors and voids," Ambassador Mothobi said.
Mothobi said Zimbabwe's economic environment had remained "generally stable" thanks to the multi-currency environment.
“The construction and real estate sector growth, however, remains subdued.”
He said the general performance of ZPI had, therefore, "mirrored the behaviour of the rest of the economy".
ZPI also said that debtors remained a serious challenge and business risk for the property firm.
Mothobi confirmed plans to embark on an aggressive campaign to collect rent including "litigation for the recovery of both space and balances owing".
"Debtors remain a challenge in the property sector and the provision for bad debts went up to US$425 802, from US$344 184 provided for as at December 31, 2010," Mothobi said.
Post published in: Business