Q2 2022 Durban eThekwini Real Estate Overview
Negative externalities have not entirely dampened Durban's commercial real estate market, which is supported by the port and more robust tourism demand.
- Mieke Purnell
In the past six months there has been considerable uptake of quality offices in the uMhlanga area, resulting in a lack of suitable premises for the growing BPO market. This has been at the expense of alternative commercial nodes, where vacancies are at record levels, and rental growth is negative.
The flood-related destruction of several industrial facilities has had the short-term effect of boosting the industrial market overall. Occupiers have been forced to seek alternative accommodation, which is in short supply. The resultant impact on rental growth and occupancy levels is positive, however, the long-term consequences will likely be significantly less so.
The region's hospitality sector fared well through the pandemic, taking up surplus demand from the domestic sector. The strength of this market is evidenced through its development pipeline, although the performance growth trajectory is slower.
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