Saturday, September 15, 2012

Pretoria Office Rentals Outlook



Over the years, the dynamics in the Pretoria area on properties has undergone a drastic change. This change is beginning to dictate how property investors and businesses are reacting to the property market. The eastern part of Pretoria is a well-known area among industry players as a bustling commercial location. As a result of this, commercial property activities such as new construction, renovations, deals, advertisements etc. are a common seen. As we may well know, an area known for such commercial activities like this are also associated with issues such as high commercial property prices, congestion, noise and sometimes crime.

Though in the case of Pretoria, the growth in the property market continues to expand. The expansion happens within the busy areas in the form of new properties and renovations as mentioned earlier on. But in the recent past, it is expanding into other areas.

A positive outcome from the busy commercial areas is that many suburbs such as Hatfield, Brooklyn, Lynwood and others are beginning to see the conversion of residential properties into commercial properties. This has arisen as a result of businesses wanting to set up offices in quiet and less congested locations. Many of the buildings that are converted from residential to commercial buildings are mostly stand-alone townhouses and stack units, which range in price from between R400,000 and R1 million. Investors are seeing a good return on their investments, according to industry reports. Properties are in high demand for office use due to all the obvious reasons.


Apart from avoiding the congestion and bustling nature of the commercial areas, there is also the issue of high prices. Experts in the industry say that property rental and sale prices in commercial areas are very high compared to the suburbs. In order to avoid it, they prefer to rent office spaces in quiet places, usually close to their homes. This means they also avoid the heavy traffic when going to work every morning. Those who are not moving into offices near their homes however, prefer properties close to the Gautrain.

Generally, prices of buildings are ranging from R65 per square meter to R85 per square meter depending on location and quality of the space.

Many players in the commercial property industry welcome this new development as a positive sign for the Pretoria office rentals arena. It is also seen as an indication that the industry is recovering from the recession that affected investors a couple years ago, following the world economic meltdown.

Article Source: http://EzineArticles.com/?expert=Dan_A_D_Boateng


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