The commercial Property Development Market – From Bust to Boom

Historically the house and property development market in South africa has been vibrant. Coverage the current world economic slump started take be patient in September 2008, it drained the confidence coming from many investors and the actual marketplace nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to take hold again, what prospects are there for upset in the commercial property markets?

When industrial and commercial property prices reached a new low, it signaled to show your internet. Firstly that the market was severely depressed and was likely to keep that way for several years, but additionally that the bottom of the trough are already reached this the sole method out, was up. With the market having stabilized at its new low, it meant that the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, with the excess of supply far outstripping demand, prices remained depressed.

However, the last 12 months has seen the warning signs of recovery occurring in the commercial 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 certainly one of the current optimistic probability. With economic forecasts being positive, kent ridge hill residences albeit slow-moving, and prices being the small sum of they are, now is a good time purchaser. As confidence returns to the economy, the potential for new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast this kind of 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 for industrial property boom in 2014/15. Keep in mind with any long gestation period a great deal of developments to find final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all things must be in place before actual construction will start to take place.

All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as the short to medium term prospects are looking very positive, and the next step is to speculate and invest.