Zambia Economy

  • Population: 20,017,675 (2022).
  • GDP Annual Growth Rate: Projected at 4.3% in 2023. The 2024 projection is 4.7%. (BOZ)
  • Exchange Rate: Zambian Kwacha fluctuated between K18.51 and K24.74 against the US Dollar in 2023.
  • Monetary Policy Rate: 11% in Q4 2023 (BOZ)
  • Average Interest Rate: 25.8% per annum (September 2023).
  • Annual Inflation Rate: 13.1% (December 2023) and the 2024 Projection is 11.4% – (Trading Economics)
  • Unemployment Rate: 6.1% (2022) and projected at 6.2% in 2023 and 6.1% in 2024 – (Central Statistics Office)

Mass Media Overview – Property Market

The Mass Media area is behind the Mass Media Complex, extending to the Great East Road and opposite the ZAF Airport. It shares borders with Rhodes Park and Longacre’s suburbs. Recent road upgrades have significantly improved access and circulation in the area, resulting in the launch of new commercial and residential zones in Lusaka. The Mass Media area has become one of the most desirable suburbs. The main roads in the area are Alick Nkhata Road, Thabo Mbeki Road, Kelvin Siwale Road, and Nangwenya Road.

Commercial developments in the area have seen significant growth, with many businesses relocating their offices from the Lusaka Main Central Business District. There has been a shift in the location due to various challenges they face, such as parking and traffic issues. The new location offers better solutions to these problems. As a result, the area previously dominated by residential properties and vacant land has become a thriving commercial hub. 

On the other hand, the demand for premium executive apartments with short- or long-term leases has risen. Furthermore, some owner-occupied properties are being re-purposed as investment properties for commercial or residential use.

Mass media is a rapidly growing area that attracts investors, with US dollar leases being one of the main incentives. However, this could change due to policy shifts by the current government.

Residential Property Market: Leasing

Over the past few years, the residential leasing market has seen significant development, with most investors preferring high-end executive residential properties for short and long-term leases. We have observed a rise in the conversion of owner-occupied properties into income-generating residential investment properties and the construction of new buildings on vacant parcels of land.

As the residential leasing market grows, increased supply pressures rental prices. Estate Agents are currently offering around 200 high-end houses for rent. The current economic conditions have affected demand, with most organizations reducing their budgets. Landlords still offer lease agreements in US Dollars.

The competition for tenants is high, with property owners now offering top-end facilities such as swimming pools and gyms to attract tenants and differentiate their properties. For investors, high vacancies increase the chances of debt default.

Rent for unfurnished residential properties ranges from US$1,500 to US$1,700, and for furnished options, it ranges from US$1,800 to US$2,500 per month.

Residential Sales

The supply of residential properties for sale in the area is low. Property owners are unwilling to sell as property values continue to rise. Sale prices range from US$200,000 to US$1,400,000.

Office Market in Mass Media

The office market in Lusaka is experiencing a shift as businesses move from the central business district (CBD) to residential areas. This trend has led to increased office developments, particularly in the Mass Media area, resulting in an oversupply of modern office space.

Due to the COVID-19 pandemic and the current economic climate, property owners are finding it hard to fill office vacancies, resulting in increased competition to attract tenants. Property owners are now offering Kwacha leases and adjusting rental prices downwards. Although most property owners still offer US Dollar leases, there is a growing trend towards Kwacha leases.

There is currently around 70,000 square meters of available office space in the Mass Media area. The demand for modern prime office space with data and voice requirements, open plan space, and better parking continues to increase. Businesses requiring 50-300 sqm drive office space demand.

Office rentals vary depending on the property grade. Grade A office space rents range between US$18 and US$20 per square meter, while Grade B office space rents range between US$14 and US$17 per square meter. Grade C office space rents range between US$10 and US$13 per square meter.

We have observed an oversupply of office space for sale in the Mass Media area, with approximately 17,300 sqm available through Estate Agents at prices ranging from US$1,300,000 to US$36,000,000.

Retail Leasing

The Mass Media area is becoming a popular destination for neighbourhood malls. With the expansion of East Park Mall, Arcades Shopping Mall, the new Agora Village, and Longacres Mall, the area now offers around 90,000 sqm of retail space. Major anchor tenants for shopping malls in Zambia are Shoprite, Pick N Pay, and Choppies.

However, the demand for retail leasing has reduced due to COVID-19 and the current economic environment, which has affected consumer spending and trade. There is increased competition between shopping malls to attract customers and retailers. Property owners are adjusting rentals due to lower foot traffic and increased vacancies.

Despite these challenges, property owners are still offering US-dollar leases. The prime retail rentals in the area range from US$17 to US$25 per sqm.

Retail Sales

Retail properties for sale in the area are rare, with the last transaction taking place in 2015 when SA Corporate Real Estate acquired a 50% interest in East Park Shopping Mall.

Land

There are still vacant parcels of land available in the area. Estate Agents’ listing estimates indicate that around 10,000 sqm of land is available for sale, with prices ranging from US$82,000 to US$250,000.

Student Accommodation

Due to the opening of universities in the area, there is now a higher demand for student accommodation. Investors in this sector provide basic accommodations such as bed spaces to cater to students who prefer to be within walking distance of their schools. The rent ranges from K800 to US$1,200 per month.