Real Estate Investor February 2021 February 2021 #131 | Page 7

EDITORIAL JOHANN RUPERT VIEW returns on investment ( ROI ). “ Most investors track the well-known and heavily traded commercial , industrial and residential markets . However , many investors and would-be investors don ’ t realise that the property market is deeply complex with around 25 sectors and sub sectors , each of which are recovering at very different rates ,” explains Gary Palmer , CEO of Paragon Lending Solutions . “ For the astute investor , however , there is still real value to be had if you know where to look .”
BlackRock a real estate institutional investor believes that today ’ s market is about selecting the potential winners and losers in 2021 . Losers in SA are mainly in the hotel , hospitality , retail and Airbnb sectors affected by reduced personal and business travel .
Winners in 2021 will be investors with liquidity who are in a position to take advantage of lower interest rates which look to remain at low levels this year . First-time home buyer sector and sub market residential locations are benefitting the biggest demand so far . The redevelopment of malls & retail into residential will continue while thriving industrial data centres , storage , distribution centres and logistics will be in demand .
The semigration trend of people moving from big cities to more affordable secondary ‘ Zoom ’ towns such as Ballito , George , Knysna , Sedgefield , Jeffreys Bay , Plettenberg Bay , Boland and Overberg will continue . People can now live and work anywhere- farther away from the office for a much lesser cost . With the growth of remote working there has been widespread adoption of digital technology to assist in home office shortcomings . A more distributed workforce that works from home will still need convenient , centralised meeting points which opens the door for new flexible working space operators in those areas .
Tony Bales , industrial broker specialist predicts that the SA industrial property sector should be one of the best performing property sectors in 2021 .“ Recovery at the end of 2021 and into 2022 is likely to be heavily reliant on the manner in which South Africa deals with Covid-19 and the speed and efficiency at which it can roll out a successful vaccination programme .”
Stay safe and successful investing
NEALE PETERSEN FOUNDER & EDITOR-IN-CHIEF
FRANKLIN D . ROOSEVELT , U . S . President
“ Real estate cannot be lost or stolen , nor can it be carried away . Purchased with common sense , paid for in full , and managed with reasonable care , it is about the safest investment in the world .”
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SA Real Estate Investor Magazine FEBRUARY 2021 3