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Belvedere property values to plummet
The Financial Gazette (Zimbabwe)
January 19, 2006

http://www.fingaz.co.zw/story.aspx?stid=533

PROPERTY values in some parts of Belvedere and Ridgeview might nose-dive after the government’s rushed decision to relocate farmers and vendors to the nearby City Sports Centre.

Real estate experts said the stop-gap measure, hurriedly instituted by the local government ministry last week, will erode values for properties in the posh Ridgeview and Belvedere areas, which are dominated by wealthy families of Indian origin.

But again, that would be dependent on how soon the ministry, which is also presiding over the construction of hundreds of low-cost houses under Operation Garikai/Hlalani Kuhle, rectifies the situation at the old vending site.

This development comes at a time when owners of residential properties are already having difficulties in restoring the values of their assets because of high maintenance costs and the breakdown of infrastructure such as roads and sewer systems.

Mbare Musika had become Zimbabwe’s most popular vegetable market although there was a lot more taking place there. It had also become a popular hunting ground for thieves and drugs dealers and fears are that the dark side of Mbare Musika could haunt the new site and communities nearby.

"Buyers of low to medium density residential properties are risk-averse people. To them, it is things such as crime rate and peace that counts and the moment you get these social ills in a particular area, it becomes very difficult to sell," said a local property expert.

The Local Government Ministry headed by Ignatius Chombo relocated the vending activities after the outbreak of cholera had claimed 14 lives.

Civic organisations have roundly condemned the move saying it was hurried with no adequate preparations having been done.

Another Harare-based property consultant, however, told The Property Gazette this week that the impact might be minimal. The consultant said there are hardly any properties offered for sale in Ridgeview and Belvedere, because people living in these areas have created barriers to entry.

"The communities are closely knit in terms of their belief systems and cultural values and normally property sales in these areas are conducted on the basis of relationships," said the property consultant, adding that wealthy families in the two suburbs might put pressure on Chombo to revisit the decision to relocate the vending site to the City Sports Centre.

Properties in Belvedere fetch a minimum $4 billion while in Ridgeview property prices do not normally go below $7 billion.

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