![\"\"](\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2023\/03\/Cape-Town-1-1024x576.jpg\")
<\/figure>\n\n\n\nProperty boom<\/h2>\n\n\n\n
Jennett explained that property is inherently cyclical, and this cycle is starting to pick up the first gusts of coming tailwinds. <\/p>\n\n\n\n
\u201cYes, the sector still has an oversupply to digest, but there\u2019s value in it if acquired at the current low pricing levels,\u201d he said. <\/p>\n\n\n\n
\u201cAs offices fill up and economic sentiment improves, their values will increase commensurately.\u201d<\/p>\n\n\n\n
\u201cWith the anticipation of reduced vacancy levels, property investment becomes more attractive, and the prospect of new developments becomes increasingly feasible, drawing investors and speculators back into the market. It\u2019s a potentially tantalising prospect after years of stagnation.\u201d<\/p>\n\n\n\n
He said the future prospect is more alluring than it has been for a long time. This is even true in the local REIT sector, where share prices still significantly undervalue their businesses.<\/p>\n\n\n\n
However, Jennett said the incoming tailwinds will inevitably see an acceleration towards recovery.<\/p>\n\n\n\n
\u201cWhen market sentiment overshoots fundamentals, long-term investors like Emira stay focused on what makes business sense, not getting caught up in the hype \u2013 acquiring at below value in places where economics are suppressed and disposing when values are full,\u201d he said. <\/p>\n\n\n\n
\u201cIt all comes down to strategic capital allocation and responsible growth. When markets show extreme dislocations from value, that is the time to move and take advantage of what will eventually show as long-term value creation.\u201d<\/p>\n\n\n\n
Emira recently sold off its portfolio in sought-after Cape Town at what it perceives as fuller value. <\/p>\n\n\n\n
Jennett said this strategically aligned move freed up capital to be deployed in Poland, where returns are extremely enticing.<\/p>\n\n\n\n
He said the fund found this market to be undervalued with strong economic growth prospects and Emira has been able to identify the right entry point \u2013 a decision that makes business sense for Emira in its pursuit of diversification and value creation.<\/p>\n\n\n\n
\u201cRising REIT returns, reducing vacancies, and returning office appetite all point to a sector in recovery mode,\u201d Jennett said. <\/p>\n\n\n\n
\u201cThe property cycle is turning, and those with a keen eye for value are already taking notice.\u201d<\/p>\n\n\n\n
He said South Africa\u2019s property sector still has meaningful operational and infrastructure hurdles to overcome, but the winds of change are starting to blow. <\/p>\n\n\n\n
\u201cWith a nuanced understanding of the sector and a discerning eye for emerging potential, there\u2019s substantial value in listed property stocks right now, with further value to be found in the future,\u201d he said.\\<\/p>\n\n\n\n
This article was first published by Daily Investor. Read the original here<\/strong><\/a>.<\/em><\/p>\n\n\n\n
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