PROPERTY OUTLOOK FOR 2022 with John Loos
We enter 2022 in a better place economically than was the case at the start of 2021. The economy has grown significantly over the past year, following a sharp contraction in Gross Domestic Product (GDP) in 2020, the “lockdown” year. The results have seen some noticeable improvement in both commercial and residential property tenant financial and payment performance. While we’re probably not yet economically strong enough to stop a multi-year rise in the All Property Vacancy Rate, implying still constrained property incomes, I do believe that commercial property on average will see the end of all out decline in average capital value, something we did see in 2020 and probably 2021 too. Back to some semblance of stability in values, therefore, with low single digit positive growth expected on average commercial property value. While better, challenges will still remain for the sector in 2022, further interest rate increases, along with expected to be a key one. FNB Commercial Property Finance quarterly market briefing. A focus on the pressured South African consumer and retail property market
For more information, please contact Irene Naidoo on 083 603 6471
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