The commercial Property Development Market – From Bust to Boom

Historically the exact property development market in South africa has been vibrant. But when the current world economic slump did start to take hold back in September 2008, it drained the confidence associated with your many investors and current market nose-dived coupled with general finances. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the commercial property store?

When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely keep that opportunity for several years, but that the bottom of the trough was in fact reached this the sole method out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were actually pouring in had stopped, and with the laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.

However, tackled . 12 months has seen the signs and symptoms of recovery going on in the commercial 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 a good example of the current optimistic outlook. With economic forecasts being positive, albeit slow-moving, and costs being as little as they are, now is an excellent time purchase. As confidence returns to the economy, the chance of new letting agreements is booming and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. Is usually forecast until this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking place.

Current thinking is this kind of may well lead with regard to an industrial property boom in 2014/15. Of course with regarding long gestation period for new developments to find final fruition, kent ridge hill residence the process needs to be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction starting to take place.

All for all this has grown to be a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as quick to medium term prospects are looking very positive, and now is the time to speculate and sow.