The commercial Property Development Market – From Bust to Boom

Historically the property development market in South africa has been vibrant. Even so, if the current world economic slump begin to take hold back in September 2008, it drained the confidence associated with your many investors and the actual marketplace nose-dived plus the general economic situation. But with the signs of economic recovery beginning to take hold again, what prospects are there for a resurgence in the economic property area?

When industrial and commercial property prices reached your own low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that means for several years, but that the bottom of the trough was in fact reached this the very best out, was up. Is not market having stabilized at its new low, it meant how the glut of distressed properties that were being pouring in had stopped, and with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.

However, kent ridge hill residence the last 12 months has seen the signs of recovery as far back as in industrial municipal debt market sector, by means of 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 a good example of the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being as low as they are, now is a good time to buy. As confidence returns to the economy, the opportunity of new letting agreements is booming and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. It is forecast that trend continues slowly but surely, depleting the supply surplus that 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. Of course with associated with long gestation period for new developments to come to final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction start to show up.

All buying this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as of course to medium term prospects are looking very positive, and it is now time to speculate and put.