GNU boosts confidence in commercial property sector

Stephen Grootes interviews John Loos, senior economist at FNB Commercial Property Finance.

The outcome of the elections and formation of the Government of National Unity (GNU) has boosted confidence in South Africa's commercial property sector, according to a new survey.

The FNB Commercial Property Broker Survey for the third quarter of 2024 shows a 'significant increase' in optimism.

44% of respondents found business conditions ‘satisfactory’, a jump from 30% in the second quarter.

This is across all three major commercial property classes; office, industrial and warehouse space, as well as retail.

The study surveys a sample of property brokers in and around our six major metros - City of Joburg and Ekurhuleni (Greater Johannesburg), Tshwane, eThekwini, Cape Town and Nelson Mandela Bay.

Stephen Grootes interviews John Loos, senior economist at FNB Commercial Property Finance.

Is 'optimism' the right word if the answer relates to a level of satisfaction, he asks the property economist.

Some would say 'less pessimism', Loos responds wryly.

"The survey, done in August after the election, does give you an impression that the actual conditions that brokers experienced had improved. When we look at their expectations though in the report I published today, that has increased notably."

"They do perceive a significant improvement in business confidence, which may also be GNU-related, and they also expect sales to strengthen over the next six months."

John Loos, senior economist at FNB Commercial Property Finance

For more detail, listen to the interview audio at the top of the article

GNU boosts confidence in commercial property sector - survey

FNB has released its Commercial Property Broker Survey for the third quarter of 2024.