We examine several graphs that depict the implications on the economy of the country’s latest National Election and its prospective beneficial influence on the real property sector. However, the President’s resounding victory, Zambia’s presidential election, is rapidly spreading across the industry. We examine the biggest five changes that have occurred that we are witnessing and anticipate to witness in the next days and weeks, as well as how they may affect the property market.
Yields are Declining
Rates on ten-year and five-year loans decreased for the first time in three years in August 2021. Up to eight percent on average for the ten–year debt. And up to 25 percent for the five-year bond, as speculators gambled on an industrial revival under incoming President Hakainde Hichilema, as per Bloomberg.
Development of the National Currency
In two weeks after the elections, the Zambian Kwacha rose by nearly 15% versus the US dollar, giving it the highest-selling currencies in the globe after the August poll. This was the currency’s initial gain in five years, suggesting increased hope in the country.
Copper Rates Escalating
Increasing copper rates, the country’s key international currency provider, have brought new hope about the country’s economic prospects. Furthermore, the copper output will expand by 13.6 percent to one million tons in 2021.
Consistent Cost of Renting
Notwithstanding the deterioration of the market, large office rentals have stayed constant over the last year. Going ahead, we expect an uptick in interest from both investors and shareholders in the office sector. In addition, anecdotal information suggests that the election has resulted in an upsurge in inquiries from renters.
Covid-19
According to Google’s Mobility Index statistics, which tracks differences in visits and hours invested at different sites relative to a pre-pandemic norm, transportation to and from workplaces returned to the starting point following the elections. Nevertheless, the number of verified Covid-19 cases remains to climb, with the total now standing at 209,172, up from 20,462 at the end of 2020. The new government’s capacity to contain the epidemic and provide vaccinations will be its final litmus test.
A Change of Environment
“The emotion shift is palpable, and it’s incredible how rapidly confidence brought back to Zambia following the August 12 elections and the establishment of new authorities led by President Hakainde Hichilema, who managed to win by a natural disaster,” Tim Ware, general manager of Knight Frank Zambia, tells me from Lusaka, Zambia’s country’s capital.
