Real Estate Investor Magazine South Africa June 2018 | Page 47

INSIGHTS
does not require the long-term financial
commitment of a bond.
To meet these needs, smart developers
are snapping up B-grade office blocks in
commercial centres and converting them
into residential spaces. Moreover, areas that
have traditionally been industrial-only are
now seeing mixed commercial, industrial
and residential developments. In many in-
stances these areas, like Paarden Eiland in
Cape Town, are often situated fairly close
to the city centres, lowering transport pres-
sure. As the demand for residential accom-
modation grows, these suburbs are prime
development areas, attracting funding from
the buy-to-rent investors.
The need for affordability has also seen
the rise of much smaller apartments. Be-
fore, the rental market was at 54 square
metre in size, but now new developments
are coming on board with 18 to 22 square
metre micro-apartments.
Other property investments which are
gaining momentum include new hotels.
Previously, it was fairly diffic