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SA Property Market Leading Recovery
| News by Staff Reporter
According to the real estate performance index released in April 2010 by IPD/Sapoa, property investors with commercial property interests in South Africa will be pleased to hear that despite the economic woes in the United States and the United Kingdom last year, South African property has managed to yield an average total return of 8.7 percent.Conversely, the US suffered a contraction of 17.5 percent, while the UK property market mustered an average total return of 3.5 percent.
Managing Director of IPD SA, Stan Garrun, said that the South African property market's solid fundamentals helped it maintain net income growth, and added that rental growth has been resilient and occupancy levels have been maintained.
Mohamed Kalla, a property analyst at Barnard Jacob Mellet, said the resilience of the South African Property Market can be attributed to the South African banks being tighter on credit control, unlike countries like the US and UK, together with more prudent gearing levels, meaning that property funds were not forced to sell assets at the lowest prices, resulting in the amount of money being borrowed exceeding than the value of the secured asset.
The resilience of the South African commercial property market is likely to attract even more attention from foreign investors trying to get the best returns on their properties.
Source: www.bizpremises.co.za
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