Business Day Reporter

INDUSTRIAL property remains the top-performing property sector in SA, with 65% rental growth over the past two years, the latest eProp rental barometer shows.

Retail growth was at 55%. Office growth came in last at 20%.

“It’s once again a clear case of supply and demand,” says eProp research director Marc Schneider.

“There is a dearth of industrial space across the country and this is placing huge upward pressure on both land prices and rentals.

“But it’s a positive picture for investors, with average gross asking rentals still growing. This will have a positive impact on achieved rentals in all sectors.”

As far as industrial rental growth in the provinces is concerned, Schneider says the strongest growth over the past two years has been KwaZulu- Natal, with 100% growth, followed by Gauteng with 65% and Western Cape with 59%.

Retail property in Western Cape has been the best performer in terms of retail rentals, with growth of nearly 150% over the past two years, compared with Gauteng’s 62% growth and 12% for KwaZulu-Natal