JHI Real Estate’s Kwa-Zulu Natal broker manager, Alan Dryburgh, says that his team hit the year running and the activity levels show no sign of abating. “Investors are scrambling for properties, while tenants are looking to become owners,” he says.
He believes that the upturn in the market is due to a combination of low interest rates, positive spin-off from the buoyant residential market, and a general feel-good confidence that abounds. “Its also a case of property versus equities. Property has performed consistently well for a number or years in comparison to equities that are far more volatile.”
He says that the aggressive buying of property from the funds continues to provide impetus for the market, complemented by an equally competitive drive from private investors.
Areas in high demand include Springfield Park, River Horse Valley, La Lucia Ridge Office Park and select areas of the Durban CBD. Dryburgh says that the strong demand is exerting upward pressure on prices. This is particularly so in the industrial market.
Commercial premises are in greater supply, with an over-supply in some areas. But quality investment properties are scarce.
Dryburgh adds that the Durban CBD is attracting a lot of attention particularly in the retail market where letting is very strong particularly in the core area bordered by Smith, West, Field and Gardiner Streets. There is also strong demand for offices from smaller professional firms and entrepreneurial business catering to the urban market.
Publisher: JHI Real Estate
Source: Kerry Osborne
