In the previous year, office space uptake has been poor as a result of the depressed economic climate in Zimbabwe.
Occupiers have been struggling to meet rent and service charges and the levels of arrears were generally high. Defaults in the office sector have increased significantly with demand declining due to the underperforming economy. With the pandemic in effect, the office sector’s chances of recovery are blurry. The outbreak has put pressure on the office space market and rental growth as a result of low economic activity and reduced business activity. Access to the Central Business Districts (CBD) was a challenge putting pressure on the performance of properties within the CBD highly affecting the sector. The sector’s occupancy level is estimated at 60% for the bulk of the office buildings in the CBD and this is projected to decrease as companies adopt technology for remote working and voluntarily surrender space surrender.
Observed rentals in the office sector achievable in US$ are as follows:
Download the full Property Market Report Q2 – 2020.