2013-02-03 08:37:33 - New Business research report from Business Monitor International is now available from Fast Market Research

BMI's Q113 South Africa Real Estate report examines the commercial office, retail, industrial and construction segments throughout the country in the context of an industry in the midst of a protracted construction lull, following years of double-digit growth.

With a focus on the principal cities of Johannesburg, Cape Town and Durban, the report covers the rental market performance in terms of rates and yields over the past 18 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of the government-led infrastructure initiative on a market characterised by a tepid construction pipeline. 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.


Full Report Details at
- www.fastmr.com/prod/529545_south_africa_real_estate_report_q1_20 ..


As such, the negative supply side outlook for the sector is starting to have a tangible effect upon the real estate rental market, with our newly collected data covering market performance for the first six months of 2012 doing little to inspire confidence.

Key Points

* We hold to our view for South Africa to see tepid growth over the medium term, forecasting that real GDP will expand by 2.7% in 2012 and 3.3% in 2013, with risks weighted to the downside. Although private consumption should hold up relatively well, serious headwinds from the global economy will inevitably take their toll on growth.
* On August 16, 34 striking miners were shot dead by police in the so-called 'Marikana Massacre' at a platinum mine owned by Lonmin. The incident has sparked further unrest in the mining sector and exposed deeply-ingrained political issues, prompting investors to re-think South Africa's risk profile.
* We continue to see sluggish growth within the wider South African construction sector despite President Zuma's concentrated effort on infrastructure investment in 2012. Though growth picked up marginally over the first quarters - indicating that the slump has finally reached a bottom - there are still many bottlenecks, both political and financial, preventing a strong return to former glories. Hence, on the back of a tentative domestic pipeline we believe South Africa's construction industry will continue to face limited growth at home, and therefore maintain our construction industry real growth forecast of 2.5% for 2012.

Report Table of Contents:

SWOT Analysis
- South Africa Real Estate SWOT
- South Africa Political SWOT
- South Africa Economic SWOT
- South Africa Business Environment SWOT
Real Estate Market Overview
Real Estate Market Analysis - Office
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (ZAR per m2/month)
- Table: Net Yield, 2011-2012
- Table: Terms Of Rental Contract/Lease - H112
- Industry Forecast Scenario
- Table: Forecast Rents, 2012-2013 (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017
Real Estate Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (ZAR per m2/month)
- Table: Net Yield, 2011-2012
- Table: Terms Of Rental Contract/Lease - H112
- Industry Forecast Scenario
- Table: Forecast Rents, 2012-2013 (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Table: Retail Sales Indicators, 2009-2016
Real Estate Market Analysis - Industrial
- Rents And Yields
- Table: Historic Rents - 2011-2012 (ZAR per m2/month)
- Table: Net Yield, 2011-2012
- Table: Terms Of Rental Contract/Lease - H112
- Industry Forecast Scenario
- Table: Forecast Rents, 2012-2013 (ZAR per m2/month)
- Table: Forecast Net Yield, 2010-2017
Forecast Scenarios
- Construction And Infrastructure Outlook
- Table: South Africa Construction And Infrastructure Industry Data, 2009-2016
- Table: South Africa Construction And Infrastructure Long-Term Forecast, 2014-2021
- Macroeconomic Outlook
- Table: South Africa - Real GDP Growth (q-o-q SAAR)
- Table: South Africa - Economic Activity, 2011-2016
- Table: South Africa - Major Gold Expansion Projects
Real Estate Risk/Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Middle East And North Africa Risk/Reward Ratings
- South Africa's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Market Orientation
- Table: Africa, Annual FDI Inflows
- Table: Trade And Investment Ratings
- Table: Top Export Destinations, 2002-2009
- Operational Risk
Competitive Landscape
Company Profiles
- 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 Data
- 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
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Sources

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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

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