It’s Hot on the Coast for Commercial Property

KwaZulu-Natal (KZN) is the place of opportunity at the moment for commercial property investment.

Head of Property for Gumtree SA, Barrie Swart, says that more than a quarter of the 20 000 commercial properties advertised on the online site are from KZN “and that number is growing every week”.

Alternatively, residential property in Durban took 14th place out of 165 cities in the world surveyed for the latest Knight Frank Global Residential Cities Index. Residential property prices have increased by 11.6% between Q4 of 2014 and Q4 of 2015.

Swart says there are particularly attractive properties available on Gumtree in a range of hot spots including Chatsworth, Cato Manor and Ballito/Umhlanga.

Swart attributes this surging demand to a variety of factors including “the massive infrastructure investment in the province over the past decade in the airport, the stadium, harbours and freeways as well as the recent R900M upgrade by PRASA on public transport facilities; the ports of Durban and Richards Bay playing such a key role in the economy of the whole of sub-Saharan Africa; and the boost provided by the 2022 Commonwealth Games”.

With nearly a third of South Africa’s manufactured exports produced in KZN – the province’s diverse manufacturing sector is the second largest in the country, led by Gauteng – Swart sees the positive trend in commercial property continuing.

What’s more, the latest SA Property Owners Association report also provides encouragement for the sector generally by confirming that rental nationally continue to out-strip inflation and that office vacancies declined in the final quarter of 2015 in every category except A-grade.

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