Historically the real estate development market in South africa has been vibrant. Shield for your windshield the current world economic slump begin to take be patient in September 2008, it drained the confidence involving many investors and current market nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the economic property trade?
When industrial and commercial property prices reached a good solid low, it signaled 2 things. Firstly that the market was severely depressed and was likely in which to stay that means for several years, but that the bottom of the trough had been reached and that the best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.
However, given out 12 months has seen the signs of recovery as far back as in industry sector, and 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 the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and kent ridge hill residences costs being as little as they are, now is an effective time to order. As confidence returns to the economy, the potential for new letting agreements is rising and properties are much more beginning to move, resulting in a slow but steady rise in prices and rates. It can be forecast that trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.
Current thinking is this may well lead to an industrial property boom in 2014/15. Not surprisingly with such a long gestation period a great deal of developments to arrive at final fruition, the process needs always be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can start to show up.
All buying this is now a very positive time for property development. Industrial property investors have every reason to get cautiously optimistic, as it is definitely to medium term prospects are looking very positive, and now is the time to speculate and sow.