Zimstat CPI data for the month of June shows that property rentals on average declined by 4.13% in the 12 months period to June 2018. This decline is in direct contrast to an inflation of 2.97% over the same period.
Given a rise in headline inflation over the same period it would have been normal to expect a spontaneous increase in rentals. The variance is a clear reflection of the underlying economic performance which broadly weak.
Earlier in the first half, a number of property companies attested to sustained rental pressure mainly in CBD office properties.
The service industry which occupies most the office space has not realized significant performance improvements, save for the financial services sector which enjoyed a good run in 2017.
Performing portfolios within the property sector are those biased retail and residential, tapping into the resurging aggregate demand.
- Equity Axis News
