The industrial 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 suppress in September 2008, it drained the confidence involving many investors and the nose-dived along with the general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for upset in the economic property market?

When industrial and commercial property prices reached a new low, it signaled 2 things. Firstly that the market was severely depressed and was likely to keep that way for several years, but additionally that the bottom of the trough had been reached and that the greatest out, was up. Is not market having stabilized at its new low, it meant that 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, explored 12 months has seen the signs of recovery developing in the commercial sector, together 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 an illustration of this the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is an excellent time to order. As confidence returns to the economy, the opportunity of new letting agreements is rising and kent ridge hill residences properties are had been beginning to move, resulting in a slow but steady rise in prices and rates. Is usually forecast that trend continues slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking point.

Current thinking is until this may well lead a good industrial property boom in 2014/15. Certainly with such a long gestation period for first time developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all of those things should be in place before actual construction can begin to reside.

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