Real Estate Investor Magazine South Africa October 2014 | Page 46

STRATEGIES

BY JONATHAN S SMITH

Property Development
Opportunities within Southern Africa

T

here is extensive opportunity for commercial property investors to achieve meaningful returns from
property development in South Africa. But, as with all investments, such property development needs to
be strategically planned and managed.
Developers should commence this process by seeking a number of potential development opportunities and
performing a comprehensive due diligence review of the land and proposed development. It may help your
strategic planning to select a property development from one of the following categories in the table below.

PROPERTY DEVELOPMENT CATEGORIES
TERM

EXPLANATION

Greenfield development

A development on virgin land, which has not been developed previously or which has typically been used for
agricultural purposes only. Such development normally requires the installation of basic services prior to the
construction of a building.

Brownfield development

A development on underused or obsolete existing developments.

Residential

A development to be used for residential accommodation only. These may include sectional title and housing
estates.

Commercial – office

A development to be used for office accommodation only. These may include sectional title developments and
office parks, which may be similar to housing estates.

Commercial – retail

A development to be used primarily for retail accommodation.

Industrial

A development to be used for industrial accommodation only.

Mixed-use

A development which comprises a mixture of uses. Leading mixed-use developments allow users to reside,
work and relax within the confines of a single development.

Green buildings

Property developments which are energy efficient and which exploit the use of natural resources in order to
reduce their reliance on municipal electricity and water. T