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Market Report, "South Africa Real Estate Report Q1 2014", published


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2013-12-25 23:53:54 - Recently published research from Business Monitor International, "South Africa Real Estate Report Q1 2014", is now available at Fast Market Research

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.

Full Report Details at
- www.fastmr.com/prod/754700_south_africa_real_estate_report_q1_20 ..

In general, demand is stable as South Africa due to its position as an attractive regional base, resulting in high occupancy rates and increasing rents. Nevertheless the development pipeline remains well below pre-2010 levels. As such, we expect favourable absorption-completion dynamics will buoy the leasing sector in the short term, but unless development activity picks up this indicator will serve as a hindrance to long term growth.

With the construction sector still in a period of stagnant growth, we see few opportunities to lift the industry out of the quagmire. For real estate firms with a higher dependence on the construction side, the risks are greater than for those with a portfolio of leasable space, as the slowdown in the project pipeline will go some way to rectifying the imbalanced supply and demand dynamics.

Recent Developments

* The International Council of Shopping Centres (ICSC) has announced a collaboration with industry body, the South African Council of Shopping Centres (SACSC). The organisations will work to integrate South Africa's shopping centres with retail networks worldwide, enabling the industry to make use of analysis and new resources from across the globe, EPROP reports. Members of the SACSC will become affiliates of the ICSC, with access to the body's research, assistance and guidelines.
* Property in South Africa provided investors with a 9.2% return in H113, an increase from 8.9% in H212. Analysts have attributed the increase during the period to capital growth.

Key BMI Forecasts

* Rental rates across the office sector will remain stable for 2014.
* Rental rates in the Cape Town retail sector will increase by 5%, with rates in Johannesburg and Durban remaining stable.
* Rental rates in the Johannesburg industrial sector will increase by 5%, with rates in Cape Town and Durban remaining the same.
* Net yields will maintain their 2013 levels into 2014.

Partial Table of Contents:

BMI Industry View
SWOT
- Political
- Economic
- Business Environment
Industry Forecast
- Office
- Table: Forecast Rents (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Retail
- Table: Forecast Rents (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Industrial
- Table: Forecast Rents, 2013 (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Construction And Infrastructure Forecast Scenario
- Table: South Africa Construction And Infrastructure Industry Data 2011 - 2016
- Table: South Africa Construction And Infrastructure Industry Data 2017 - 2022
Macroeconomic Forecast
- Economic Activity
- Table: Real GDP Growth, % chg q-o-q, SAAR
- Table: South Africa - Economic Activity
Industry Risk Reward Ratings
- MENA - Risk/Reward Ratings
- Table: Middle East Real Estate Risk/Reward Ratings
- South Africa - Risk/Reward Ratings
Market Overview
- Johannesburg
- Cape Town
- Durban
- Office
- Table: Terms Of Rental/Contract Leases, H212
- Table: Historic Rents, 2012-2013 (ZAR per m2/month)
- Table: Net Yield, 2012-2013 (%)
- Retail
- Table: Terms of Rental Contract/ Leases, H212
- Table: Historic Rents, 2012-2013 (ZAR per m2/month)
- Table: Net Yield, 2012-2013 (%)
- Retail Sales Indicators
- Table: Retail Sales Indicators, 2010-2017
- Industrial
- Table: Terms of Rental Contract/Leases, H212
- Table: Historic Rents, 2012-2013 (ZAR per m2/month)
- Table: Net Yield, 2012-2013 (%)
Competitive Landscape
Company Profile
- Aveng
- Group Five
- Liberty Properties
- Murray & Roberts Group
- Orion Real Estate
- Pam Golding Properties Group
- SA Corporate Real Estate Fund
- Seeff Properties
- Wilson Bayly Holmes-Ovcon
Demographic Forecast
- Demographic Outlook
- Table: South Africa's Population By Age Group, 1990-2020 ('000)
- Table: South Africa's Population By Age Group, 1990-2020 (% of total)
- Table: South Africa's Key Population Ratios, 1990-2020
- Table: South Africa's Rural And Urban Population, 1990-2020
Methodology
- Industry Forecast Methodology
- Sources
- Risk/Reward Ratings Methodology

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=754700&dt=t

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.


Author:
Bill Thompson
e-mail
Web: www.fastmr.com
Phone: 18008448156

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