Non-residential property boom ahead

05-10-2004

It's a good time to buy non-residential property. Industrial space will probably come into short supply soon and real office market values are low relative to historic levels.

Rode CEO Erwin Rode says that real industrial rentals are at their lowest levels for over two decades, and remaining vacancies are likely to be quickly mopped up in the immediate future, leading to a shortage of space, which will again drive rentals upwards.

It's also likely to be a good time to buy office properties, as real office market values are still declining across the country.

Speaking at the annual Rode Conference in Stellenbosch recently, Rode said he expects a big boom in industrial property. With vacancies likely to be quickly mopped up and high building costs hindering the addition of new space, market rentals are likely to increase, which bodes well for investors in this property type.

"Offices, industrial property, shopping centres and listed funds now offer good value. It is the only asset class in SA that is not fully-priced," he says.