Nelspruit infrastructure improvements draw national companies, investors

All sectors of the Nelspruit property market are now benefiting from upgraded infrastructure, and investor appetite has been whetted.
The city, seat of the Mpumalanga government and commercial hub of the province, now boasts infrastructure on a par with other large commercial centres around the country, says Juan Botha, owner of top local estate agency RealNet Nelspruit.

4 Bedroom House for sale in Sonheuwel
"The commercial property market is particularly active at the moment," he says, "with several large national concerns having taken up office space to establish regional offices, as well as distribution centres and warehouses. Some companies have also bought commercially-zoned land and are in the process of building custom designed offices and other commercial space."
A-grade office space in Nelspruit now commands monthly rentals of between R100/sqm and R130/sqm. Retail space is letting for between R100/sqm and R300/sqm depending on location, and light industrial space for between R40/sqm and R70/sqm
Botha adds that commercially-zoned development land has become scarce and that companies and investors are vying to buy available land parcels. "Nelspruit has experienced a sharp increase in demand and 18 stands at Riverside Park Extension 22 Industrial Park recently sold quickly at prices ranging from R2m to R15m," he says.
The influx of commercial concerns has also boosted the local residential property market and demand is putting pressure on stock levels, particularly in theR700 000 to R1,5m price range. Botha says there is a great need of new development in this price range, especially since investors have now returned to the market and are competing with homebuyers in this range.
"Investors realise that they can earn returns of between 7% and 8% on local residential property,as opposed to between 2% and 4% if they hold their investments in bank deposits. And demand is likely to escalate further on the back of a new private hospital under construction between Nelspruit and White River, as well as the new local university. Investors are already sourcing apartments and houses suitable for student accommodation and we expect that trend to gather momentum."

4 Bedroom House for sale in Nelspruit
But, he says, the biggest concern in the residential sector is overpriced homes that are getting ‘left behind’. “Sellers need to realise that buyers are well-informed and will not overpay for property, even in areas where there is a shortage. The banks are also strict on valuations and will not overvalue any property.
“Experienced residential estate agents will do accurate comparative market analyses (CMAs) before starting to market a home – and the advantage of working with such agents speaks for itself, as the homes they market generally sell within 30 days of listing and the banks are eager to finance these purchases.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 16 Mar 2018
      Strange as it may seem, there is a stock shortage looming now in the luxury sector of the Johannesburg property market, because astute buyers have for the past few months been hurrying to snap up high-end homes being offered at excellent prices.
    • 16 Mar 2018
      No one likes having to claim but having insurance for your household contents is vital, and at the start of a new financial year, homeowners either applying for new household insurance or revising their existing insurance should take a comprehensive inventory of their possessions and keep track of the total value.
    • 15 Mar 2018
      First-time buyers typically need to save for at least three years to afford the deposit on a home, and the VAT and fuel price increases announced in this year’s budget are going to make it even more difficult for them to reach that goal.
    • 15 Mar 2018
      Sea Point shows how developers use these organisations to advance their own interests
    • 15 Mar 2018
      As the rand strengthens against other major currencies, the prospect of investing in properties abroad is an increasingly appealing option for South African investors. Several factors, local and international, are sending a clear message: now is the time.
    • 14 Mar 2018
      Selling a property is never easy. Subtle details – from mismatched scatter cushions, to an unswept kitchen – can spell the difference between a potential buyer making an offer, or scratching your property off their list altogether. As much as you would love to be around to hear the passing comments as buyers amble through your abode, by choosing to remain at home during a showing, you set yourself at risk of becoming exactly that “subtle detail” that gets in the way of an offer.
    • 14 Mar 2018
      Home design mirrors the world around us and the phenomena of global warming, fossil fuel depletion and natural resource scarcity have created a revolution in architectural concepts and design.
    • 13 Mar 2018
      It has long been a foregone conclusion that towns where markets are driven largely by the demand for holiday homes will always perform below the national average during subdued economic times, but a report released by FNB last month has revealed that this is no longer the case.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us