Strong growth in demand for office space

10-04-2007

The strong growth in office-building plans passed during last year is a clear sign that developers perceive demand to be strong and expect it to remain so in the foreseeable future.

While building statistics released by Statistics SA indicate that most activity during 2006 was once again on the retail front (with retail floor space completed growing by more than 60% over the 11-month period ended November 2006); the figures on building plans passed indicate that office developments will become more prominent in 2007.

Industrial plans passed also grew significantly in 2006. However, in contrast to the office market where building plans passed accelerated during the latter half of the year, industrial plans passed decelerated notably in the second half of 2006.