The Western Cape

Semigration is sweet for Winelands commercial properties

to R300/m² and are therefore hanging onto their properties.”

Struck says the commercial sector in Stellenbosch is following the residential market. This mean investors who buy property in a good location can also expect continuous solid capital growth.

In 2012, Nedbank Group demonstrated its confidence in the long-term growth potential of the retail sector in the town by providing finance for the completion of the new Eikestad Mall precinct, and taking an equity stake in the development. The precinct, a fivephase, multi-purpose property redevelopment is now regarded as one of the prime retail and residential growth nodes in the country.

Kobus Conradie, of Lew Geffenin Paarl, says although demand for commercial space in the area has been increas- ing, it spiked last year.

“This was largely driven by upcountry buyers who had initially bought residential properties in the estates in Paarl and have now began duplicating or moving businesses to the Western Cape.”

Conradie says the biggest demand has been for light industrial properties, especially rental units of between 200m² and 300m². More and more national and international players are building factories and depots close to the N1 and other major routes.

“Dal Josafat is one of the most popular industrial areas as it offers a variety of properties at very accessible rentals. Paarl also offers upmarket industrial parks like Zandwijk Park, which boasts many blue chip tenants.

“The retail sector has also seen tremendous growth, with national brands regularly opening in new malls and on busy intersections in Paarl centre.

“Two large shopping centres, the Paarl Mall and Rembrandt Mall, were recently

will go on having business follows

completed and another new mall and a private school are already in the planning stages.”

Chris Cilliers, CEO and principal for Lew Geffen Sotheby’s International Realtyin the Winelands, says: “Somerset West is fast becoming known as a commercial hot- spot and a prime location to buy commercial space as an investment.

“Having grown exponentially during the last decade, commercially it now comprises different pockets, with the strongest demand for the new office space and light industrial units close to Somerset Mall. Office and retail space in the old part of Somerset West are considerably cheaper, but this is due to the dwindling foot traffic as the new commercial area continues to grow.

“With commercial property prices still about 20% cheaper than in Cape Town, the boom time in the commercial capital of the Helderberg Basin looks set to continue into the foreseeable future.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, believes there are few better property invest- ments in South Africa than Winelands commercial space.

“Given the current political turmoil, the Western Cape will continue to experience a high influx of skilled migrants from other metros and inevitably business follows and demand spikes.

“In addition, yields on commercial property are traditionally better because, unlike residential property where rental increases usually drop when the economy slumps, commercial leases usually keep pace with inflation.”

Geffen says another key factor underpinning commercial growth in the region is the fact that people continue to seek a better quality lifestyle away from the increasingly frenetic cities, and the Winelands ticks all the main boxes.

Conradie concurs: “I have recently fielded enquiries from companies wanting to move their businesses to farms where they can offer their workers more tranquil working conditions.”

Residential semigration is behind the substantial appetite for commercial and industrial space in the Winelands, such as this open plan office with a large balcony in a modern building in Dorp Street.