Expect more property developments in 2019
Richard Gray, Harcourts Africa CEO
“We expect the push to develop certain areas to continue.”
Major metro developments performed well during 2018, defying the downward trend of the property landscape and without a doubt this will continue throughout 2019 says Richard Gray, Harcourts Africa CEO.
In a recent statement Gray said that the large-scale investment injections into city living is very exciting and much needed. “We’ve seen how incredible the major commercial and residential property developments in places like the inner city of Cape Town and Johannesburg are transforming the CBDs. There is a real effort to make properties available and an effort to revitalize certain areas as well as boost already booming regions,” he said.
Just this week Herman Mashaba, executive mayor of Johannesburg, announced that work will start soon on the refurbishment of certain inner-city properties to provide low-cost accommodation. EGC Properties and Johannesburg Housing Company, two developers in the project, have committed a total investment of just over R204 million for the refurbishment of three properties.
Continued Gray that on the other side of the spectrum there is also a growing demand for housing in well sought-after communities. He said reports indicated the goals of property developers’ are to meet the demand for housing in areas like Sandton and surrounds. “Many of these properties appeal to first-time buyers, business executives working in the greater Sandton area as well as investors seeking an asset that will show positive appreciation and rental returns,” Gray explained.
“We expect the push to develop certain areas to continue. Especially due to the appeal of these properties. Many people view them as safer because of stringent security strategies. Also, there is often a community aspect to lifestyle estates and developments – children playing in the park and getting to know your neighbours. We’ve seen how the inclusion of a management body and property guidelines assist properties to have a long-term investment life.
“The often overlooked aspect that certain developments bring to a community is the increased economic activity. In areas like Somerset West in Cape Town, there are developments almost the size of suburbs. This attracts commercial interest to the region, increasing employment and business growth opportunities and ensuring the local economy has a chance to grow,” ends Gray.