Real Estate Investor Magazine South Africa September/ October 2019 | Page 9

PROPERTY ADVICE
Industrial rentals resilient
Q
The office and retail environment has
been under severe pressure in the
market, we have seen industrial in
the guise of logistics and storage do
well. Do you think that industrial is a
good long term investment and what
is your prognosis on the sector?
A T
he industrial property market is still holding up
amazingly well, given the state of the economy
and confidence levels of investors and consum-
ers. The latest survey by Rode & Associates shows that
market rentals are still growing at around 5-6% on a
year earlier.
The likely reason for the steady performance of
industrial properties is that it is generally not – unlike
office buildings – a speculative market as buildings tend
to be custom-built for the occupier.
As for the longer-term prognosis, the fortunes of
ERWIN RODE
CEO of Rode & Associates
all typologies of properties are in the end linked to the
performance of the economy – you cannot resist the law
of gravity for ever!
Having said this, it seems that for the time being
the distribution centre segment is doing reasonably
well. This is the segment represented by warehouses
larger than 10 000 m². A possible explanation for this
is that businesses are geographically consolidating
and improving their distribution function. Cutting-
edge racking systems make this leap towards a new
generation of warehouses possible.
EU Residency & citizenship
Q
I am investigating citizenship overseas
and have looked at Malta, Cyprus
and Portugal as possible options to
relocate myself and my family ( with
two young children). What is the
cheapest and best option for me and
my family?
A A
ll three countries offer beautiful beaches with clean
waters and a rich diversity of culture and gastrono-
my. The quality of life and personal safety is excel-
lent. So how does one choose which country would suit a
young family? If you don’t speak Portuguese, then Malta
and Cyprus both former British colonies are the easier
choice. Other advantages if one comes from a common-
wealth country is the familiar legal and governmental
practises; and you drive on the left! Cyprus is most geared
for sports and leisure and has an enviable factor of 4: 1 in
respect of local population versus annual tourism which
drives the wide variety of activities.
PR programmes give the right to a family to relocate
to their chosen country now or in the future. With their
COSTAS SOURIS
Quality Group
RSA passport and PR card they have automatic rights
to visit or live permanently in their chosen country.
The least expensive in Cyprus at €300 000. The cost of
the immigration application in Cyprus is also the least
expensive at €8400 for a family with young children. The
process is also the fastest, and most assured route to EU
Citizenship by naturalisation within 7 years. Malta offers
two PR routes.
Either purchase for €350 000 or rent for a minimum
of five years at a minimum rental of €16 000pa. Portugal
allows €500 000 to purchase anywhere or €350 000pa
on regeneration projects in preselected areas (Older
than 30 years) Malta and Portugal offer Schengen visa
with Cyprus about to enter the system.
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
7