I have just returned from a business trip to South Africa where I Was carrying out research into their commercial property and serviced office market and I must say that it was a real eye-opener. I had never been before and I must admit, I was expecting a typical ex-colonial country. Slightly tired buildings and an obvious third world feel. How wrong can one be? I found the place to be vibrant, very American in it’s can-do attitude and they are building so fast that it’s impossible for any structure to look tired or worn out – if it does then the South Africans simply knock it down and build a new one in its place.
It is quite obvious that confidence is returning to the South African real estate market and the country’s inclusion this year in the BRIC group of major emerging markets is set to boost foreign investment, particularly in commercial property.
South Africa’s inclusion into the group that currently includes Brazil, Russia, India and China, means it will become BRICS and legitimises South Africa as a future global power.
According to the latest Sage Property Report from the Standard Bank, one of the largest banks in Africa, confidence in the South African property market is returning with an 8.3% year on year growth rate in the median property prices in August following a 7.3% rise in the previous month.
One of the most interesting things that I saw while in the country was anew concept called “Containoffices”. These are simply shipping containers that have been lined with plaster board, had windows fitted, power points, phone lines and air-conditioning and are used as permanent mini-offices in designated office parks. They are cheap, secure and quickly made-up. Some office parks use the same concept but sell other services thereby turning them into a type of executive suite arrangement or serviced offices. Very clever, I thought.
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