Please note that you are using an outdated browser which is not compatible with some elements of the site. We strongly urge you to update to Edge for an optimal browsing experience.

Property investment in 2021 | How different property classes coped with the pandemic

01 Feb 2021

The property market has undergone huge changes during 2020 as a result of the Covid-19 pandemic, but not all sectors have had the same experience.

Global real estate marketplace, Wealth Migrate which allows investors to safely invest internationally, in quality opportunities for wealth preservation shares insights into how different asset classes have been affected and what lies ahead in 2021. 

Scott Picken, CEO of online investment portal Wealth Migrate says, "The whole world is holding its breath as the slow roll-out of the vaccine heralds a return to normality, take note of the types of real estate you could pursue in the new year to ensure 2021 is be the beginning of fresh successes."

READ:  Millionaire Migration | Where SA's super rich want to live and why

Industrial

"The one sector of the economy that benefited from lockdown has been online retail outlets and this has also been good news for the manufacturers that supply them. An interesting twist to this is that some malls, which have battled, could be turned into distribution centres for e-tailers."

Hospitality

"The hospitality industry was one of the hardest hit during lockdown as planes were grounded and borders closed. A slow recovery is discernible, but research puts a return to 2019 levels in only 2024."

Office

"Remote working was very nearly the death of the office, in fact, office buildings as an asset class have been the worst affected. Pay close attention as some companies may make remote working a permanent feature for at least some of their workers."

READ: The residential market right now | Millennials head back to the burbs

Multi-family

"The stand-out best-performer of 2020 has been multifamily apartments. In the US, strong occupancy and collection rates, along with stimulus cheques and savings have boosted the asset class. Affordable financing deals have also driven up demand for multi-family offering."

READ: Four new developments to make pricey Cape Town 'more accessible' for young buyers

Student housing

"Student housing is in demand as top-tier campuses absorb students from other schools. Also, as social distancing demands that on-campus housing reduce its occupancy levels the need for off-campus housing is on the rise (especially for buildings within 1.5km of campus)."

Medical office

"Any medical building with tenants that offer critical care and procedures are worth considering, but those that offer optional care and procedures are less of a sure bet. Location and solid tenants, with clear longevity, are crucial when deciding to invest in these buildings."

READ | South Africans can now own property and live in Mauritius for a lot less 

Retail

"Consumer behaviour has been changed, possibly irrevocably, so if you are looking at a retail asset make sure it has a strong supermarket as an anchor tenant along with two to three other good, solid tenants that will bring foot traffic to the shopping centre, which in turn will attract other good tenants."

Senior housing

"Researchers expect there to be a significant demand for senior housing in four years’ time as the Baby Boomers start entering their 80s, this demand will then increase each year. When it comes to investing in senior housing, a good partner is always a must, so choose carefully."

READ: How to protect your retirement savings in 2021

Self-storage

"An often-forgotten property class is self-storage, which is in demand, especially when it offers amenities such as heating, ventilation and air conditioning (HVAC) and good security. The needs and expectations of self-storage clients are quite exacting, so, again, a good partner can ensure you make a success of this."

Print Print
Top Articles
The South African property market in 2024 has been anything but stagnant. With exciting shifts in buyer behaviour, rental trends, and investment opportunities, this year has been a whirlwind of activity and adaptation.

What sets the luxury market apart is its independence from broader economic trends and understanding what drives this market requires looking beyond the numbers to the intangibles that define true luxury.

With interest rates finally on the decline and rental vacancy rates lower than they’ve been in years, property is an excellent investment option as long as the homework is done

Loading