ZIRUP 2013 ANNUAL SCHOOL, BEITBRIDGE

Audrey Kwangwama, Immediate Past President of The Real Estate Institute

of Zimbabwe (REIZ)

What is land? It is the surface of the earth

The source of all minerals, vegetable matter and animals

The foundation for social, political and economic activities

A commodity as well as a source of wealth (ULI 2007)

Under all is land

Attributes of landEach parcel of land is unique in its location

and composition

Land is fixed

Land is durable

Land supply is finite – the need for efficient and effective management

Land is vital to people

Definition of real estate“Land or resources embodied in land” (Jack

Harvey 1992)

“The physical land and appurtenances affixed to the land” ( The Appraisal Institute 1992)

Real Property – All interests, benefits and rights inherent in the ownership of physical real estate

Government limitations to real estate

Taxation

Eminent Domain

Police Power

Escheat

Taxation

The right of government to raise revenue through assessment on valuable goods, products and rights

Border towns – payment of rates to local authorities

Eminent Domain

The right of government to take private property for public use upon payment of just compensation

Compulsory land acquisition for urban development

Allocation of acquired land to border towns for urban development

Police power

The right of government under which property is regulated to protect public safety, health, morals and general welfare:- Zoning ordinances- Use restrictions- Building codes- Air and land traffic regulations- Access rights-Health regulations

Escheat

The right of government that gives the state title ownership of a property when its owner dies without a will or any ascertainable heirs

Real Estate DevelopmentContinual reconfiguration of the built

environment to meet society’s needs ( Urban Land Institute 2007)

- Construction of roads- Water reticulation and treatment plants- Sewer systems-Housing-Office buildings-Lifestyle centres

Real Estate Development & Management

Initiation and management of the creation, maintenance and eventual re-creation of spaces in which people live, work and play

Real estate development – starts with idea that comes to fruition when consumers, tenants or owner occupants occupy the bricks and mortar put in place by the development team

What is needed to transform a real estate idea into reality?Land – availability for allocation to developers

Labour

Capital

Entrepreneurship

Effective management

Partnerships

The role of the public sectorPublic sector always a partner in every dealReal estate – a highly regulated process

- property law- public infrastructure- financial market rules- zoning-building permits-endowment fees

• All the above part of public sector realm

Real Estate Development ProcessInception of an ideaRefinement of an ideaFeasibilityContract negotiationFormal CommitmentConstructionCompletion and formal openingProperty, asset and portfolio management

Commencement of constructionInfrastructure:- capacity of water and sewer treatment

plants

Water and sewer reticulation - water and sewer mains

Onsite sewage and water reticulation

Roads

Certificate of Compliance – Sales through Cession

Enforcement of conditions in a development permit

Implications for the property industry

Completion and formal opening

Local authority approves occupancy

Connection of utilities – Where are they?

Sink boreholes, use generators for power, use private collectors of garbage- total building occupation costs

become very expensive

Tenants move in – How do they move in when there is no water?

THE CASE OF KATIMA-MULILO, NAMIBIA

Katima Mulilo is the regional capital of the recently renamed Zambezi province in Namibia

Situated on the bank of the Zambezi River on the border with Zambia

Is the gateway into Central Southern Africa, occupying a unique position bordering Angola, Botswana, Zambia and Zimbabwe

POPULATION AND ECONOMIC ACTIVITYLocal population estimated at 28 200 during the

2011 Population and Housing Census

60% of population lives in informal settlements which are currently being formalised

Economic activity mainly retail, industrial, Gvt/Parastatal, tourism and informal trading (dominated by food and alcohol trading)

Bulk of roads- gravel but well built

Municipal StatusKMTC elected for first time in 1992

Town proclaimed in 1995 with an area of jurisdiction covering 2 969 ha

Second proclamation of 2008 added another 1 280 ha (though this is a GRN farm)

All operations governed by provisions of the Local Authorities Act, Chapter 23 of 1992 as amended

Planning legislationTown Planning and layout design governed

mainly by two pieces of legislation namely:The Townships and Division of Land Ordinance

No. 11 of 1963 – which deals with laws relating to the establishment of townships and controls the development and subdivision of land

The Town Planning Ordinance No. 18 of 1954 as amended, which makes provision for the preparation and carrying out of Town Planning Schemes and provides a framework within which such schemes are prepared

Planning Legislation cntdFor all Local Authorities which are not

planning authorities, layout planning and township establishment is centrally approved by Ministry of Regional, Local Government, Housing and Rural Development (MRLGHRD)

Current setup is such that it takes anything up to three years to have any layout approved, surveyed and registered at the Deeds Office, thus creating a bottleneck in the land delivery process

Land Use Plan

Land alienationAll land sales or leases more than a year long have to be approved by MRLGHRD in terms of Sections 63(2) and 30(1)(t) of the Local Authorities Act, 23 of 1992

This also creates bottlenecks in the land alienation system

Rate of land delivery far outweighed by demand

Impact of Rural Urban migration

Scenario aggravated by fact that Katima is the only proclaimed urban settlement in Zambezi Region, hence rural urban migration most pronounced here

Result is that more people live in informal settlements than in formal areas of the town

Opportunities in Khatima-MliloKatima seen as sleeping giant just about to

awaken

Strategic location on the gateway into Central Southern Africa

Demand for a dry land port for goods coming into and from the port of Walvis Bay

Demand for trucking facilities in town

Opportunities cntd

The Walvis Bay Corridor Group (WBCG) currently working on a Spatial Development Initiative (SDI) aimed at enhancing strategic linkages within a 100km radius of the Trans Zambezi Corridor, anchored in the town of Katima Mulilo

Katima also seen as providing an alternative, uncongested “waterfront” holiday resort besides Walvis Bay, Swakopmund etc

Opportunities CntdExisting and potential retail development

have spheres of influence stretching across the border into Zambia

However the neighbouring countries also pose a serious competitive force in the tourism market

Katima currently a transit point to Kasane in Botswana and Victoria Falls in Zimbabwe

International Co-operation

Town stands to benefit from the Kavango-Zambezi Trans-Frontier Park (KAZA) jointly operated by Botswana, Namibia, Zambia and Zimbabwe

Tourism they key

Spatial development initiative – Victoria Falls, Livingstone, Kasane and Khatima Mlilo

SummaryEfficient land delivery system

Infrastructure – off-site and on-site

Partnerships – Public sector will always be a partner to the private sector

International Co-operation