The industrial Property Development Market – From Bust to Boom

Historically the house and 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 many investors and the market nose-dived along with general financial crisis. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for an upsurge in the commercial property store?

When industrial and commercial property prices reached another low, it signaled 2 things. Firstly that the market was severely depressed and was likely remain in that path for several years, but that the bottom of the trough are already reached understanding that the sole method out, was up. Together with market having stabilized at its new low, it meant that the glut of distressed properties that were being pouring in had stopped, and that isn’t laws of supply and kent ridge hill residences showflat demand in operation, with the excess of supply far outstripping demand, prices remained depressed.

However, you will develop 12 months has seen the warning signs of recovery as far back as in sector 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 one among the current optimistic views. With economic forecasts being positive, albeit slow-moving, and costs being at only they are, now is an excellent time to buy. As confidence returns to the economy, the potential for 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 is forecast this specific trend continue slowly but surely, depleting the supply surplus that eventually trigger a new bout of property development taking place.

Current thinking is this may well lead a good industrial property boom in 2014/15. Of course with such a long gestation period a great deal of developments arrive at final fruition, the process needs to be kicked off now. Feasibility studies, surveys, finance – all in the things must be in place before actual construction will start to take place.

All in many this has grown a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, as of course to medium term prospects are looking very positive, and the time has come to speculate and invest.