HARARE – The property market is pinning hope of improvement on increased mortgage lending and lower interest rates by financial institutions.

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Liquidity constraints that have slowed down activity on the properties sector in the past two years remain a major challenge but still property consultants maintain optimism that more financial instruments will be availed on the market and spur growth.

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Rawson Properties Managing Director Richard Matengambiri says an increasing number of financial institutions have come on board with housing development projects and this should give potential home owners a better chance to secure property.

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“We expect an increase in mortgage lending because most financial institutions have seen that this is a good way to make money,” said Matengambiri.

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Other property consultants say rentals are expected to come down in line with the prevailing economic climate.

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The better share of housing projects being rolled out has been taken by more affluent classes.

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The majority of the working class is unable to afford the 25 percent deposit rate and terms offered by most mortgage lenders.