SA - best performing commercial real estate in world
South Africa had the best performing real estate market in the world in 2003. Research Worldwide.com has just published results of its annual survey which showed that property investments in South Africa showed an actual total return of 15.1% last year.
South African commercial real estate outperformed sixteen other major
countries to lead ResearchWorldwide.com's - 'Worldwide Commercial Real
Estate Performance Ranking 2003'.
The office sector, still struggling with overcapacity in some areas, lagged at 8.5%. According to IPD South Africa, the All Property Income Return for South Africa showed 11%, with capital values increasing by 4.1%, the strongest recorded since 1997.
Australia, with 13% total return computed from Property Council of Australia's Investment Performance Index for 2003, showed the retail market leading at 16.9%, closely followed by the industrial market at 15.2% and the office market at 6.9%.
Low US interest rates
The boom in house prices worldwide, also fuelled by low interest rates, continues to encourage homeowners, now with increased home equity, to feel confident and spend. This spending has contributed to retail real estate investments worldwide showing double-digit annual total returns. With increased consumer and investment spending, improved factory floor orders are reflected by high total returns for industrial real estate worldwide.
Worldwide commercial real estate performance ranking - Source: ResearchWorldwide.com
Article By: www.sabcnews.com