The economic Property Development Market – From Bust to Boom

Historically the real estate development market in South africa has been vibrant. But when the current world economic slump did start to take wait and see in September 2008, it drained the confidence out of many investors and the nose-dived along with the general economic situation. But with the signs of economic recovery beginning to look at hold again, what prospects are there for an increase in the economic property store?

When industrial and commercial property prices reached another low, it signaled a pair of things. Firstly that the market was severely depressed and was likely to stay that approach for several years, but additionally that the bottom of the trough was in fact reached and that the best out, was up. While using market having stabilized at its new low, it meant how the glut of distressed properties that were pouring in had stopped, and together with laws of supply and demand in operation, while excess of supply far outstripping demand, prices remained depressed.

However, given out 12 months has seen the signs of recovery going on in industry sector, along with property prices still artificially low, this 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 outlook. With economic forecasts being positive, albeit slow-moving, and prices being the small sum of they are, now is a good time purchaser. As confidence returns to the economy, possibly new letting agreements is rising and properties are once again beginning to move, bringing about a slow but steady rise in prices and rates. Always be forecast that trend will continue slowly but surely, depleting the supply surplus which will eventually trigger a new bout of property development taking point.

Current thinking is this specific may well lead to an industrial property boom in 2014/15. Of course with any long gestation period kids developments arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of those things must be in place before actual construction can start to show up.

All within all this will finally be a very positive time for property development. Industrial property investors have every reason become cautiously optimistic, kent ridge hill residences as simple to medium term prospects are looking very positive, and now is the time to speculate and make an investment.