sapoapng

Commercial property sector takes hit as GDP declines

Neil Gopal of the South African Property Owner’s Association chats to Cape Talk's Refilwe Moloto about the impact the GDP decline is likely to have on the country's commercial property market.

Last month GDP slumped by 3.2% to its lowest in ten years.

Gopal says without GDP growth, building rates decline because no new businesses are being established.

It all has a knock on effect. There's a strong correlation between GDP growth and the demand for space.

Neil Gopal, CEO - South African Property Owner’s Association

Gopal says increases in rates and taxes are eating into landlords rentals.

We've got some situations where tenants are paying higher property rates and taxes than actual rental.

Neil Gopal, CEO - South African Property Owner’s Association

Rates and taxes and electricity have gone up by 25% annually over the last couple of years and that eats into rentals and makes those kind of investments less and less desirable.

Neil Gopal, CEO - South African Property Owner’s Association

Listen to the full interview below:


This article first appeared on CapeTalk : Commercial property sector takes hit as GDP declines


Recommended

by NEWSROOM AI
Read More
SA consumers do not trust online retailers, study shows

SA consumers do not trust online retailers, study shows

Accenture MD Jonathan McCabe says there is opportunity to integrate eCommerce with the more traditional business.

Outcry as City of Cape Town hikes Salt River rent from R240 to R5500

Outcry as City of Cape Town hikes Salt River rent from R240 to R5500

Reclaim the City Woodstock chapter leader Deena Bosch says the City knows it can not introduce such exorbitant rental increases.

'Industry horrified by Icasa sporting rights draft regulations'

'Industry horrified by Icasa sporting rights draft regulations'

Columnist Barbara Curson says Icasa did not do industry research before they came out with these regulations.

Former Lions rugby player describes surviving a stroke and some of the signs

Former Lions rugby player describes surviving a stroke and some of the signs

Ethienne Reynecke had a stroke over a year ago, and he describes the signs and symptoms he experienced and his road to recovery.

Election of Helen Zille will not solve DA problems, says analyst

Election of Helen Zille will not solve DA problems, says analyst

Political analyst Daniel Silke gives an analysis of the Democratic Alliance council outcomes from the weekend.

[LISTEN] Why more single women are buying property, tips for first-time buyers

[LISTEN] Why more single women are buying property, tips for first-time buyers

Samke Mhlongo chats to Joanne about the latest trend and shares tips on how to go about purchasing your own property.

Popular articles
DA to decide if Herman Mashaba will serve his notice period or get cut loose

DA to decide if Herman Mashaba will serve his notice period or get cut loose

It's reported that some senior members of the Democratic Alliance want Mashaba's membership terminated with immediate effect.

'Audit found Mango and Comair planes were signed off by unqualified persons'

'Audit found Mango and Comair planes were signed off by unqualified persons'

The South African Civil Aviation Authority explains some of the findings of its maintenance audit at SAA Technical.

'I want to ensure my money delivers change to as many people as possible'

'I want to ensure my money delivers change to as many people as possible'

Black Business Council president Sandile Zungu on his attitude toward money (hopes and fears, successes and failures, etc.).

'Mbete faced difficult questions. She has done a lot in terms of responding'

'Mbete faced difficult questions. She has done a lot in terms of responding'

Xolani Xala (SA Business Abroad) defends his defence of ANC stalwart Baleka Mbete’s "car crash" interview on Al Jazeera.

[WATCH] Oprah roasts student about his cracked phone, then buys him a new one

[WATCH] Oprah roasts student about his cracked phone, then buys him a new one

Khabazela shares tweets and Facebook posts that have gone viral.

Why Vestact is buying Discovery (JSE), Long4Life (JSE) and Booking.com

Why Vestact is buying Discovery (JSE), Long4Life (JSE) and Booking.com

Portfolio Manager Byron Lotter shares his stock picks of the week with Bruce Whitfield on The Money Show.

[LISTEN] What you need to know about new revenge porn laws

[LISTEN] What you need to know about new revenge porn laws

A person found guilty of so-called 'revenge porn' could now face up to four years in prison or a fine of up to R300,000.

[WATCH] Toddler upset that mom didn't give him a goodbye kiss, is so adorable

[WATCH] Toddler upset that mom didn't give him a goodbye kiss, is so adorable

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Boy explaining what he heard when parents had sex goes viral

[WATCH] Boy explaining what he heard when parents had sex goes viral

Khabazela shares tweets and Facebook posts that have gone viral.