I have just returned from a business trip to South Africa. I was carrying out research into their commercial property and serviced office market and I must say that it was a real eye-opener. I had never been to South Africa before and I must admit, I was expecting a typical ex-colonial country. You know the one, slightly tired buildings and an obvious third world feel.
How wrong could one be? I found South Africa to be vibrant and very American in its can-do attitude. I saw firsthand that they are building at such a pace that it is impossible for any structure to look tired or worn out. It appeared to me, that if any building shows slight signs of fatigue, then the South Africans simply knock it down and build a new one in its place.
It is quite obvious that confidence is returning to the South African real estate market and the country’s inclusion this year in the BRIC group of major emerging markets is set to boost foreign investment, particularly in commercial property.
South Africa’s inclusion into the group, which currently includes Brazil, Russia, India and China, means it will become BRICS and legitimises South Africa as a possible future global power.
According to the latest Sage Property Report from the Standard Bank, one of the largest banks in Africa, confidence in the South African property market is rising.
One of the most interesting things that I saw whilst in the country, was a new concept I have never seen nor heard of before called ‘Containoffices’. These are simply, shipping containers that have been lined with plaster board, had windows, power points, phone lines and air-conditioning fitted and are used as permanent mini-offices in designated office parks. They are cheap, secure and quickly made-up. Some office parks use the same concept but sell other services, thereby turning them into a type of executive suite or serviced offices. Very clever, I thought.
