From SB Wire

We believe that the real estate sector in South Africa will remain stable in 2014 because of a lack of change in the supply demand dynamic and enough new projects in the pipeline to satisfy strong demand.

Net yields will remain consistent in all sectors, and we will see only a couple changes in rental rates. The sector does face some headwinds in terms of faltering macroeconomic conditions, a volatile currency, and inflation concerns, but it is still one of the brightest commercial real estate prospects in the region.

Commercial real estate is dependent on a healthy macroeconomic environment. South Africa’s economic prospects have deteriorated amid rapid currency depreciation and rising tensions in the critical mining sector.

We are forecasting real GDP growth of 3.3% in 2014, with risks weighted firmly to the downside. Poor economic growth affects the sector as it dampens both property fundamentals and capital markets, putting downwards pressure upon tenant retentions, rental growth, yields, development activity, financing and asset values.

Read more at SB Wire