Commercial property sector to surge
The commercial real estate sector is showing signs of growth, with experts tipping a surge of new ...
The commercial real estate sector is showing signs of growth, with experts tipping a surge of new office and hotel construction across the country to lead an upturn in the industry.
According to BIS Shrapnel, the commercial and industrial property market is set for an upswing, with significant growth in non-residential developments forecast for the 2012 to 2013 financial year.
While retail construction is tipped for a slow year ahead, growth is predicted in several other areas including a 13 per cent growth in office developments, 43 per cent increase in accommodation, 26 per cent spike in transport and a 12 per cent surge in warehouse construction.
The nationwide forecast is for a six per cent rise in commercial property developments, following a period of no growth during the 2011 to 2012 financial year.
With the commercial property sector expected to surge ahead in the next 12 months, property investors may be interested in snapping up office, warehouse or retail real estate across the country.
An increase of office starts by 13 per cent in the same period is also likely to interest investors looking for property in the office market - one of the tightest sectors that delivers high yields for owners.
"While the current economic climate is volatile, gradual growth is expected which will flow through positively to employment," BIS Shrapnel said.