In the past the property development market in South Africa has been vibrant. But when the current world economical slump commenced to take restrain in September 08, it drained the self confidence out of many traders and industry nose-dived along with the general economical situation. But with the signs of economical restoration beginning to take keep again, what prospects is there for a resurgence in the professional property market? house extensions cardiff
When professional and commercial property prices reached a new low, it signaled two things. Firstly that the market was seriously depressed and was very likely to stay that way for several years, but also that the bottom of the trough had recently been reached and the only way out, was up. With the market having stabilized at its new low, it meant that the glut of agitated properties that had recently been pouring in had halted, current laws of resource and demand in procedure, with the extra of source far outstripping demand, prices remained depressed.
However, the last a year has seen the signs of restoration taking place in the commercial sector, and with property prices still synthetically low, this has began to stimulate demand, as property development speculators are one again sensing the ability of making good brief to medium term comes back on new investments.
Workplace properties in particular are a good example of the present optimistic outlook. With monetary forecasts being positive, albeit slow-moving, and prices being just they are, now is a good time to buy. While confidence returns to the economy, the potential for new letting agreements is rising and properties are once more beginning to move, bringing about a sluggish but steady within prices and rates. It can be estimate that this trend will continue slowly but surely, depleting the provision excess which will eventually result in a new bout of property development taking place.
Current thinking is that this may well lead to a professional property boom in 2014/15. Of course with such a long pregnancy period for brand spanking new developments to come to final fruition, the process needs to be kicked off now. Feasibility studies, surveys, financing – most of these things must be in place before actual construction can get started to take place.
Via a national point of view, the South African-american government already has their policy in place as well as some IDZs, (industrial development zones), are already planned and underway. The private professional property development market is also getting its house in order, and many new private developments are in construction with many more at the planning stage.
Overall this is now 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 after this is the time to speculate and make investments.