ZPI, which last year chalked up an after tax profit of US$1,13 million for the half year ended June 30, 2011, said Zimbabwe's property sector was plagued "by illiquidity which has affected free flow of rent exchange between landlord and tenant resulting in increasing debtors and voids".
ZPI Chairman, Ambassador Don Mothobi, said in Harare, that short of appropriate debt finance to fund property development projects, including major refurbishments to existing properties, and stimulating the much-needed activity in the construction sector, 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.
"It is also unable to mobilise sufficient mortgage facilities to fund uptake of property development products. It is performing below obtaining regional averages."
He said despite these challenges, however, ZPI had managed a profit after tax of US$1,13 million for the half year ended June 30, 2011, compared to US$318 092 for the same period last year.
Mothobi said Zimbabwe's economic environment had remained "generally stable".
"This stability is largely attribuable to the use of multi-currencies which has seen inflation remaining at single digits," he said.
"This, in turn, has had positive influence on the economic outlook. The construction and real estate sector growth, however, remains subdued. There is increasing anxiety about the possibility of the United States dollar losing value against the other major world currencies."
The US dollar has already lost value against the South African Rand, another currency that is used in Zimbabwe especially by those residing in the second largest city, Bulawayo and its surrounding areas of Matabeleland.
"Fears of a significant rise in inflation, partly as a result of the US dollar depreciation, may work against the economic recovery process which is still delicate," Ambassador Mothobi said.
He said the general performamnce of ZPI had, therefore, "mirrored the behaviour of the rest of the economy".
ZPI is listed on the Zimbabwe Stock Exchange (ZSE).
It currently has a market capitalisation of US$22,317 million, up by 136 percent from the US$9,442 million it had during the same period last year.
The ZPI share price on Friday stood at US1,30c, up from US0,55c last year.
This was another 136 percent increase, according to investment analysts interviewed.
Post published in: Business