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 did start to take wait and see in September 2008, it drained the confidence coming from many investors and the nose-dived along with the general financial crisis. But with the signs of economic recovery beginning to consider hold again, what prospects are there for becoming bitten in the commercial property markets?

When industrial and commercial property prices reached a fabulous low, it signaled two things. Firstly that the market was severely depressed and was likely remain in that opportunity for several years, but that the bottom of the trough was in fact reached understanding that the best out, was up. With all the market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and that isn’t laws of supply and demand in operation, the actual excess of supply far outstripping demand, prices remained depressed.

However, you will develop 12 months has seen the signs and symptoms of recovery developing 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 this the current optimistic prospect. With economic forecasts being positive, albeit slow-moving, and costs being the small sum of they are, now is an effective time invest in. As confidence returns to the economy, the opportunity of new letting agreements is rising and properties are once again beginning to move, introducing a slow but steady rise in prices and rates. Always be 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 for kent ridge residence industrial property boom in 2014/15. However with any long gestation period for new developments to arrive at final fruition, the process needs for kicked off now. Feasibility studies, surveys, finance – all of the listed things must be in place before actual construction will start to reside.

All within all 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 next step is to speculate and make an investment.