Commercial Property and the increase in our nation’s high net worth individuals in South Africa

Gautrain has a positive effect on the value of commercial property

Overall reports show that Global Office Rental performance has put on the brakes and slowed to a weak and sluggish growth. This tread is particularly visible in the ever increasing gap between the prime locations and less desirable commercial property, although there is always the obvious trade-off consideration between affordability and location. Traditionally it was the retail, direct to the public sales, that had to be conscious of their location, but now the commercial and B2B are also finding increasing benefits of taking advantage of more central locations. Areas like Sandton, Rosebank, Centurion and Midrand remain an ever popular choice as a commercial property rental location.

Added to this marketresearch.com has identified that High Net Worth Individuals (HNWI’s) in South Africa are on the increase and are looking towards areas like Sandton, Bryanston, Rosebank and Sandhurst for their luxury homes. This is great for retail property but what does this mean for commercial property sales and rentals?
In terms of investment the real estate market is relatively safe, with property value on the increase and location becoming more important, an investment in a local commercial property would seem like a good choice for any HNWI wanting to add to their portfolio.  See our article about the benefits of investing in commercial property - Why Invest in Commercial Property?
For potential occupants of commercial property the proximity of the Gautrain increases the viability of the commercial property and as such office space within easy commuting range of the Gautrain stations has grown in popularity. In response to the demand for office space close to the Gautrain there has been a noticeable surge in the development of commercial property along the Gautrain route.
For Businesses operating in locations such as Sandton and Rosebank that are attractive to both investors and commercial rentals alike there is a sense of business prosperity and success that would normally be absent in a slow or sluggish economy.