Property market depressed

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Activity on the country’s property market remains subdued two years after the country adopted multicurrency system due to the slow demand of houses and stands in the country, an official has said.

In an interview with NewsDay Estate Agency Council chairman Oswald Nyakunika said not much had been happening as a result of a “cash crisis” and the failure by financial institutions to mortgages and long-term loans.

“Suffice to say business in the current environment is very slow such that any agent selling more than five properties a month is doing very well,” Nyakunika said.

He said from January to March this year the sector had experienced a crisis of confidence, liquidity challenges.

“Estate agents are feeling the pinch but what has kept most of them afloat is the fact that they are dealing with essential services like houses and accommodation,” he said.

He said fewer houses and stands had been sold since the adoption of the multi-currency system compared to the 1990s when the economy was performing well.

“The biggest challenge is lack of meaningful development. We need to direct resources into this sector if we need to encourage investment into this sector,” he said.

He added that many tenants during the first three months of the year struggled to pay their rentals and while borrowers defaulted resulting in some of them facing evictions and having some of their property auctioned.