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Commercial Property South Africa’s Most Promising Investment?

Commercial Property South Africa’s Most Promising Investment?

From eProp

South African investors are making more money on commercial real estate than any of their offshore counterparts. The latest figures from UK-based researcher group Investment Property Databank (IPD) has revealed.

Total returns on South African retail‚ office and industrial buildings reached a six-year high of 15.3% last year‚ placing South Africa as the most lucrative commercial property investment destination among 16 countries that have so far released results for last year.

IPD tracks the income and capital growth performance (in local currency) of directly held commercial property in about 30 countries across the globe.

The IPD SA annual property index‚ which measures 60% of professionally managed investment property in SA worth R213bn‚ comfortably pipped the US’s return of 11.4%.

The US was the second-best performing real estate market in the world last year.

Not one of the other 14 countries that have reported results for this year returned more than 8%. So far‚ the Netherlands is the worst-performing commercial property market globally‚ with a return of only 0.5%.

Analysts say the fact that South Africa’s commercial property sector has emerged from the global downturn in better shape than many others is a testament to the asset management skills of local property owners.

Further‚ continuing stock market volatility has increased demand for South African commercial property as an asset class‚ particularly among income-chasing investors.

Read more at  eProp