Rental space in Malawi is expected to continue stagnating throughout the remainder of 2020 as the property business adapts to new environment of COVID-19.
Icon Properties has given the gloomy outlook when it published it's unaudited financial statement for six month ending June 30, 2020.
Despite maintaining 90 percent property portfolio, the group generated K4.6 billion which is lower than the K5.8 billion realised around the same time in 2019.
Group chairman Rob Scharar said they made K2.1 billion profit after tax as compared to K2.5 billion in 2019.
Scharar said some tenants showed visible difficulties due to the initial reaction to the COVID-19 pandemic which in turn affected recoverability of rentals.
"The COVID-19 pandemic continues to affect all aspects of life in the country. The property industry has not been spared as it has stagnated in the growth amidst uncertainty.
"The most notable impact has been on the capital gains on the property portfolio which has seen a significant reduction compared to the previous period," he said.
Property valuation gains are hence expected to be minimal for the rest of the year except for gains from value addition.