Presented by In2Assets

Can the South African CRE Property Sector hold its strength?

 ·30 Mar 2023

Investing in the commercial property sector in South Africa remains an excellent financial decision if you find the right opportunity.

This is according to Rainer Stenzhorn from In2assets, who acknowledged that the South African commercial property market has experienced many challenges in recent years.

These include low levels of investment and rental growth, which have been caused by economic and political uncertainty, as well as floods, unrest, looting, and COVID-19.

While this may paint a negative picture of the South African commercial property market, there are also many positive factors that should be considered.

For example, commercial property continues to offer a steady income stream thanks to rental income, and this property can appreciate over time, ensuring consistent capital growth.

This is particularly notable in South Africa as the country still has huge potential to grow its economy – which would cause commercial property values to rise significantly.

Stenzhorn noted that enormous opportunities exist for investment in sectors such as logistics and warehousing, as e-commerce continues to grow in popularity.

He added that moving forward, demand for commercial property is likely to remain strong in high-growth areas such as Cape Town, Durban, and Johannesburg, while lower-growth areas may see more modest gains.

Among the investment properties up for auction on the 25th of April include:

  • A unique investment property with long-term blue-chip tenants in the sought-after area of Bedfordview, Gauteng, which presents an excellent opportunity for investors seeking to diversify their portfolios.
  • A large industrial workshop with its own warehouse in Brits, bordering Gauteng, with a GLA of 12600m2, which offers a fantastic end-user opportunity in an area with easy access to the workforce.

Numerous lots such as hotels, industrial parks, industrial warehouses, cold-room facilities, retail and accommodation blocks, and office suites will be submitted to the same auction.

The auction will be livestreamed and bidders can participate from anywhere (locally, nationally, or internationally) on the In2assets website.

In2assets also offers an alternate sales platform called the Property Dealroom, a unique digital property vault.

The Property Dealroom is an exclusive trading platform which allows transactions to be conducted either confidentially or publicly.

One of the currently listed properties in the Property Dealroom is a large-scale Mpumalanga chicken farm with its own hatchery.

The 300ha farm is well equipped with all facilities to produce about 300,000 chickens a week.

For more information on In2assets asset disposal options, feel free to contact Rainer Stenzhorn on [email protected] or 0861 444 769.

Subscribe to our daily newsletter