An Investigation on the Impact of Economic Recession on the Development of Residential Properties in the Medium Densities of Zimbabwe : A Case of Aspindale Park, Harare (2015-2022)

This research focused on the impact of economic recession on the development of residential properties in the medium densities of Zimbabwe using Aspindale Park in Harare as case study for the period 2015-2022. The study was conducted during this period because the economic meltdown has a direct impact on property development and many property developers including the developers of Aspindale Park have been affected. The objectives of the study were to determine the causes of economic recession in Zimbabwe, to assess the effect of the economic recession in the last five years on residential property development in Zimbabwe, to identify factors which influence the residential property development in Aspindale Park, Harare other than economic recession, to establish a relationship between economic recession and rental value performance for the residential property sector in Zimbabwe and to recommend measures which residential property development companies take during recession. The key findings of the research were that the economic downturn has a knock-on effect on the employment rate, as there is less work available and thus less demand for real estate. It was revealed that factors such as unemployment, interest rates, inflation, fiscal policy, exchange rates, GDP, monetary policies and housing standards are factors that have influenced the residential property development in Aspindale Park, Harare. The research also revealed that that rents can go both up and down in a recession, when the overall economy is suffering, more people lose their jobs which cause some to pull out of the house hunting game. The study further revealed that an increase in inflation coupled with a loss of business and consumer confidence result a reduction of cash supply in an economy is believed to be the root cause of a recession. Recommendations such as recession forecasting, operational efficiencies, Local homebuilders also should not underestimate the role of the media and business press when monitoring the economic cycle and marketing strategies were made