The commercial Property Development Market – From Bust to Boom

Historically the real estate development market in South africa has been vibrant. Even so, if the current world economic slump started to take be patient in September 2008, it drained the confidence involving many investors and the actual marketplace nose-dived coupled with general finances. But with the signs of economic recovery beginning to be able to hold again, what prospects are there for becoming bitten in the economic property markets?

When industrial and commercial property prices reached a new low, it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but as well that the bottom of the trough was in fact reached of which the greatest out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, kent ridge hill residences and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.

However, you will develop 12 months has seen the symptoms of recovery as far back as in industry sector, together with property prices still artificially low, it has begun to stimulate demand, as property development speculators are one again sensing the opportunity of making good short to medium term returns on new investments.

Office properties in particular are an illustration of this the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now a great time to order. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are much more beginning to move, leading to a slow but steady rise in prices and rates. Always be forecast that this trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking venue.

Current thinking is that this may well lead to an industrial property boom in 2014/15. Keep in mind with this long gestation period kids developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction can start to take place.

All in all this has grown to be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as simple to medium term prospects are looking very positive, and the time has come to speculate and make an investment.