The industrial Property Development Market – From Bust to Boom

The industrial Property Development Market – From Bust to Boom

Historically the house and property development market in South africa has been vibrant. Even so the current world economic slump started take be patient in September 2008, it drained the confidence associated with many investors and current market nose-dived along with general economic situation. But with the signs of economic recovery beginning to adopt hold again, what prospects are there for becoming bitten in the industrial property store?

When industrial and commercial property prices reached a good solid low, it signaled a couple of things. Firstly that the market was severely depressed and was likely remain in that means for several years, but also that the bottom of the trough ended up reached and that the only way out, was up. Together with 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, more than excess of supply far outstripping demand, prices remained depressed.

However, given out 12 months has seen the indications of recovery going on in industrial municipal debt market sector, together 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 constitutes a time to order. As confidence returns to the economy, the opportunity for new letting agreements is booming and properties are once again beginning to move, resulting in a slow but steady rise in prices and kent ridge hill residences rates. Is usually forecast that this trend continues slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking situation.

Current thinking is that this may well lead for industrial property boom in 2014/15. Not surprisingly with any long gestation period kids developments to arrive at final fruition, the process needs staying kicked off now. Feasibility studies, surveys, finance – all of these things should be in place before actual construction start to take place.

All within all this is now a very positive time for property development. Industrial property investors have every reason to cautiously optimistic, as quick to medium term prospects are looking very positive, and it is now time to speculate and make an investment.