The world is getting smarter and smarter and people are using latest skills provided by technology to get benefits and simplicity and also the most important fast work cost for house valuations when they in fact borrowed money to make the purchases. This being said, property indicators remain favourable in a number of centres. Office absorption has been encouraging in Johannesburg and Dar es Salaam
The top six rental growth destinations in Africa for 2003 are anticipated to be Johannesburg, Gaborone, Lagos, Lusaka, Blantyre and Harare. The last five are expecting zero rental growth but steady office market conditions over 2003. We are projecting Johannesburg office rental growth to reach around 4% for 2003.
Kampala, Dar es Salaam and Nairobi are all expected to experience rental value decline in 2003. Nairobi’s economy has been in difficulty over the past few years. This is however, projected to turn around in 2003 with 2.8% GDP growth. Kenya as a democracy is evolving and should be monitored in terms of future office investment potential. The outcome and consequences of new elections will directly impact upon economic and fiscal stability.
Rental rates for warehouse- distribution space have eroded over the past two years, but the slide has been small. The average asking rent, since peaking early in 2001, has declined by 5.5 percent, ending the third quarter of 2002 at $4.72 per square foot triple net. R&D-flex rents, on the other hand, have taken a 15.4 percent haircut from their peak, only a shade better than office rents have performed. Rental rates in 2003 should be flat for warehouse-distribution space while R&D-flex rents may fall by another 5 percent.