The 25-basis point repo rate cut by the South African Reserve Bank is likely to have a limited impact on demand in the commercial property market.
Loos says the impact of interest rate cuts on commercial property buyer and investor demand is expected to be indirect via the influence that lower interest rates have in boosting real economic growth, which, in turn, drives demand for commercial space and improves property income.“For the office property market, declining interest rates can have a positive impact in two ways.”
“Combined with lower consumer inflation, this could result in faster real disposable income growth in 2025, driving increased retail spending and improved financial performance for retail centres.”He expects that there will be strengthening in the performance of retail properties in the near term.
Nederland Laatste Nieuws, Nederland Headlines
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