The industrial Property Development Market – From Bust to Boom

Historically the exact property development market in South africa has been vibrant. Coverage the current world economic slump started take suppress in September 2008, it drained the confidence coming from many investors and marketplace nose-dived along with general economy. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an upsurge in the industrial property trade?

When industrial and commercial property prices reached a new low, it signaled two things. Firstly that the market was severely depressed and was likely in which to stay that way for several years, but additionally that the bottom of the trough are already reached and 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 actually pouring in had stopped, and with laws of supply and demand in operation, kent ridge hill residences price the actual excess of supply far outstripping demand, prices remained depressed.

However, tackled . 12 months has seen the signs of recovery occurring 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 probability. With economic forecasts being positive, albeit slow-moving, and prices being as low as they are, now is a good time to buy. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are again beginning to move, introducing a slow but steady rise in prices and rates. Is usually forecast this specific trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking situation.

Current thinking is that this may well lead a good industrial property boom in 2014/15. However with associated with long gestation period for first time developments to find final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of these things end up being in place before actual construction can begin to show up.

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