Following unprecedented challenges in 2020 in the face of a global pandemic, every industry has had to adapt and adjust their service offerings accordingly, and cater to a market that has had different needs compared to the pre-pandemic era. Similarly, the property market has had to keep up with the times and adjust its operating and marketing model for the current era. In 2021, many of these same trends will be maintained and even expanded upon.
Here are some of the top commercial property trends that we can expect to see in 2021.
Alternative spaces to work
The impact of Covid-19 has seen a major shift in the commercial property market, with industries turning towards alternative spaces to house their businesses. For example, the medical industry has increasingly adopted traditional retail spaces that offer easier accessibility for patients. In 2021, one can expect to see barriers to entry for many markets lowered, as it becomes easier to buy commercial property. Innovative investors could have a field day putting money into properties that benefit mass retailers and inject money into affordable industrial parks.
Lower house price growth
In recent times we have seen a recovery in housing prices. However, an uncertain economic outlook and a shaky labour market are expected to result in lower house price growth in 2021, with an increase in the number of home sales resulting in property price appreciation being held back. This price is likely to reflect a national average of about 2% to 3% growth year-on-year.
Increased technological advances
Industries have been forced to embrace technology such as video communications even more rapidly in 2020, and similarly, the property industry has had to incorporate and utilise technological advances on a larger scale. In 2021, there may be a move towards more use of virtual technology that will bring functions such as auctions and property viewing into the 21st century.
More tenant power in the rental market
The financial and social impact of Covid-19 has resulted in a number of vacancies in the rental market, which has provided tenants with a significant amount of choice. Rental data for the third quarter of 2020 indicated that there was a high amount of rental vacancies in both the low-end and luxury property markets, with 17% of properties where rent is over R3,000 pm recorded as vacant, while rentals just under R25,000 pm had a 23% vacancy rate. Looking ahead to 2021, landlords should be cognisant of providing a rental property that isn’t only priced right but is safe and secure for no additional cost.
Rarely-seen high-quality properties will be marketed
The pandemic has resulted in major cities losing their lustre as a venue to both work and live for many people. With so much work being conducted remotely, many have realised that their living circumstances need not be tied to their job prospects, and Gauteng and Western Cape business people have therefore swapped the hustle and bustle of Sandton for more serene and naturally beautiful locales such as St Francis and the Garden Route. In 2021, this trend is likely to continue, with an increase in the number of properties that are rarely seen on the market.
No matter what happens in the property market in 2021, Leadhome will help lead the way in providing smart, technologically-savvy and user-friendly assistance. Use our search portal to help you find the perfect and affordable property for you.