Investment Property Databank (IPD) will present the results of the SAPOA/IPD SA Property Index at events sponsored by Eris Property Group in Johannesburg and Cape Town on 29th March 2011, revealing much about the current state of the investment market.

Investment property returns have been declining since their peak in 2007, and in 2009 the SAPOA/IPD SA Property Index recorded a total return of 8.7%. The 2010 results will show whether a turnaround has been achieved, and whether SA can join many other countries around the world already experiencing the initial stages of the upswing part of the cycle.

Coming off the back of a global recession, but with the bright hope of the FIFA World Cup as a potential income boost, there were plenty of conflicting drivers for the South African property market in 2010. The hot topics of electricity and rate rises no doubt impacted on the overall returns, but how much of an impact did all these factors really have?

The results will show which sectors of the market are recovering and which are still stagnant, and will delve into an analysis of the fundamentals of property supply and demand: vacancies, rentals, valuations and more. Investors and analysts will be keen to see evidence of the bright lights – sectors, property types, and regions – that are leading the way and similarly where the risk is housed within the market.

Within a global context, South African property remained relatively resilient throughout the downturn, although it has certainly not escaped unscathed. Some of the world’s leading markets have already steered themselves through the trough of the cycle and out the other side.

Stan Garrun, Managing Director of IPD SA comments: “Property owners need to be profitable in every stage of the cycle, and actions have been taken to mitigate losses and to scrape out as much performance as possible. But does this really mean that we are going “back to basics”, as has been widely quoted, or does this climate present an opportunity for fund managers to get smarter, research carefully and develop innovative strategies to set them apart and create better value for their clients. These results will show how successful fund managers have been in managing the storm.”

Warren Schultze, CEO of Eris Property Group says, “The SAPOA/IPD Property Market Index has become the pre-emptive benchmark for measuring unlisted property returns, and has added to the credibility of the asset class in South Africa.  The index has undoubtedly supported the investment case for both South African investors, and assisted in showcasing the merits of South African property investment to international investors.”

For further information contact:
Stan Garrun, Managing Director, IPD South Africa
+27 (0)11 656 2115, This email address is being protected from spambots. You need JavaScript enabled to view it.