Investors wrung out to dry

Owners are moving outside the country, as local operating costs rocket

SOUTH AFRICAN property investors are being put off by the high operating costs of commercial properties and turning their sights to investing in other countries instead.

Rates, taxes and electricity, in particular, are squeezing commercial property owners dry, and government needs to find a solution – and fast, says Neil Gopal, chief executive of the South African Property Owners Association (Sapoa).

These costs are a “significant portion” of the operating expenses.

“We have situations where tenants are paying more rates than rental.”

Gopal says locals need to stop using property rates as a mechanism to balance their books, and to, rather,

SOUTH African property investors are being put off by the high operating costs of commercial properties and turning their sights to investing in other countries instead.

Rates, taxes and electricity, in particular, are squeezing commercial property owners dry, and government needs to find a solution – and fast, says Neil Gopal, chief executive of the South African Property Owners Association (Sapoa).

These costs are a “significant portion” of the operating expenses.

“We have situations where tenants are paying more rates than rental.”

Gopal says locals need to stop using property rates as a mechanism to balance their books, and to, rather,