Commercial and industrial property sales in the Western Cape are booming.

This is according to property investment experts, Tony Bales and Guy De la Porte of Bales Delaporte, a niche property investment broking company based in Cape Town.

“There is a very good outlook for commercial and industrial property at the moment, with all economists agreeing that it is likely to be a strong performing asset class – outperforming residential property growth.”

“This is due to the fact that there is a lack of alternative investment avenues, with the stock market very high and residential property sales slowing down,” says Bales Delaporte.

“Previously, the residential component was extremely popular as it responded quicker to economic growth and interest rate cuts than the commercial and industrial sectors, but now because of the rapidly growing economy and the lowest interest rates in 40 years, the commercial and industrial sectors are catching up.”

“Additionally, the low interest rates have also spurred strong manufacturing growth which has boosted industrial property occupancy rates and a demand both to purchase and to let.”

According to Bales Delaporte, trends show that residential investors are switching to commercial investment due to the better returns.  “Generally, commercial investments yield double the income return than residential property, with a better outlook for capital growth as well.”

“Recently, Bales Delaporte concluded two deals in the Western Cape that are in keeping with this trend.  21 Reuban Kaye Road in Parow Industria was sold for R820,000  to a private investor within 24 hours of our being granted the mandate, illustrating the high demand for industrial investment properties under R 2 million.

“Additionally, Benbow Avenue in Epping 1, which is occupied by well known international company, Linde, was sold to a private investor for an undisclosed sum,” says Bales.

Industrial property remains a popular investment sector across South Africa with an average 35% rental growth over the past two years. Whilst retail property has had a few years of strong growth, offices are also in demand due to the expected growth in office rentals.

“It is once again a clear case of supply and demand,” concludes de la Porte.  “The local outlook is currently very good and investors are generally looking locally and not internationally.

For more information please contact Bales Delaporte on 0861 332 562 or visit www.balesdelaporte.co.za

Ends

Issued by:                   
Catherine Pate
082 922 1737
(021) 556 0100
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On behalf of:                
Bales Delaporte

Contact:                      
Tony Bales
083 675 3773
www.balesdelaporte.co.za