The economic Property Development Market – From Bust to Boom

Historically the real estate development market in South africa has been vibrant. Coverage the current world economic slump begin to take wait and see in September 2008, it drained the confidence coming from many investors and current market nose-dived along with the general economic climate. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an increase in the commercial property markets?

When industrial and commercial property prices reached a good solid low, kent ridge residence it signaled 2 things. Firstly that the market was severely depressed and was likely keep that path for several years, but also that the bottom of the trough were definitily reached understanding that the best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were 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, tackled . 12 months has seen the signs of recovery occurring in industrial municipal debt market sector, other than 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 as low as they are, now a great time invest in. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. It can be forecast that trend continues slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking place.

Current thinking is this specific may well lead a good industrial property boom in 2014/15. Of course with regarding long gestation period kids developments to arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things end up being in place before actual construction will start to are held.

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