INCREASE IN MPC RATE TO AFFECT REAL ESTATE

THE Fairworld Properties Limited says the increase in the Monetary Policy Rate by 150 basis points to 12.5 percent will have a direct impact on real estate in the country.

Chief Executive Officer, Chisebwe Fumbeshi, said the escalated policy rate would lead to higher loan interest rates, including mortgages, potentially cooling off immediate demand for real estate.

He said buyers might either delay their purchasing decisions in anticipation of a more favourable market or shift their focus towards more economically feasible housing options.

Mr Fumbeshi also said with the uptick in financing costs for new home purchases, they might see a bolstered demand for rental properties, potentially leading to increased rental yields.

He added that this scenario presents an appealing proposition for investors, eyeing the rental market as a source of stable income amidst the economic fluctuations. “Development and construction: The sectors of real estate development and construction might witness escalated costs due to higher borrowing rates. Nevertheless, the broader economic stabilisation endeavours and influx of investments are likely to buffer these impacts in the mid to long term,” he said. “As Valuation Surveyors and Real Estate Consultants, we are vigilantly observing these unfolding developments and stand ready to guide our clients through the prevailing market dynamics.

We advocate for well-informed decision-making and strategic planning as essential tools for capitalising on the opportunities present in Zambia’s real estate landscape during this economic recalibration phase,” Mr Fumbeshi said.

“We maintain an optimistic outlook towards the future of Zambia’s real estate market and pledge our unwavering commitment to furnishing our clients with the necessary insights and advice for optimising their investment ventures.”