Fairworld Properties, a Zambian real estate advisory firm, says the increased Monetary Policy Rate from 12.5% to 13.5%, will slow down real estate transactions in the short term, since the high policy rate increases borrowing costs.
Bank of Zambia yesterday increased the Monetary Policy Rate for the 6th consecutive time, the move the Central Bank Governor, Denny Kalyalya, said is aimed at combating inflation to foster economic stability.
But Fairworld Properties Chief Executive Officer, Chisebwe Fumbeshi, said the increased Monetary Policy Rate marks a pivotal shift with potential effects on real estate investment dynamics.
“The company reassures all stakeholders of its commitment to leveraging its expertise to maximize property investment outcomes amidst these changes,” said Mr. Fumbeshi in a statement issued in Lusaka today.
Mr. Fumbeshi however acknowledged that the economic stability being sought after by the Central Bank will be beneficial for the real estate market in the long term.
“Our deep-rooted experience spanning over two decades has shown us that economic stability is a key driver for robust investment in real estate. We are equipped and ready to assist our clients in adjusting their investment strategies to align with these new economic conditions,” said Mr. Fumbeshi.
By Eva Hatontola
