The industrial 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 take restrain in September 2008, it drained the confidence associated with many investors and the actual marketplace nose-dived coupled with general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the economic property markets?

When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely to keep that means for several years, but as well that the bottom of the trough had been reached and that the only way out, was up. Together with market having stabilized at its new low, it meant how the glut of distressed properties that had been pouring in had stopped, and with the laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.

However, given out 12 months has seen the indications of recovery going on in sector sector, by means of 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 outlook. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now a great time to buy. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are had been beginning to move, creating a slow but steady rise in prices and rates. Always be forecast until this trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.

Current thinking is this may well lead with regard to an industrial property boom in 2014/15. Certainly with such a long gestation period moms and dads developments to find final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all things end up being in place before actual construction can start to be fulfilled.

All buying this has grown 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, kent ridge hill residence and it is now time to speculate and develop.