The commercial Property Development Market – From Bust to Boom

Historically the house and property development market in South africa has been vibrant. But when the current world economic slump started to take wait and see in September 2008, it drained the confidence out of many investors and the actual marketplace nose-dived along with the general economic climate. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the industrial property markets?

When industrial and commercial property prices reached a new low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that path for several years, but that the bottom of the trough ended up reached in which the very best out, was up. With the market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and together with laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.

However, kent ridge residence you will develop 12 months has seen the warning signs of recovery taking place in industry sector, other than property prices still artificially low, this 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 prices being as little as they are, now is an excellent time to buy. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are once again beginning to move, leading to a slow but steady rise in prices and rates. It is forecast this kind of trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking venue.

Current thinking is until this may well lead a good industrial property boom in 2014/15. Certainly with regarding long gestation period moms and dads developments to go to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of these things must be in place before actual construction can start to take place.

All buying this has grown a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as quick to medium term prospects are looking very positive, and it is now time to speculate and make an investment.