The coming year is likely to see prime rental values remain stable across much of the continent. Rents are now holding firm on prime stock in most major cities, after a period of cooling. However, some cities, including Blantyre, Malawi, are expected to show a further rental decline in the coming year.
Despite an oversupply scenario, the relative stability and long-term prospects of the Johannesburg market have ensured it remains top of the table. property valuer Adelaide position is also boosted by its continued healthy economic growth and stability. These Sydney property valuations. Improving economic fundamentals within industrialized nations has assisted with strengthening many industrial markets around the globe during 2004. In particular, warehouse/distribution has performed well in America while manufacturing continues to grow in Asia.
Industrial space vacancies remain high throughout most of America and Canada. Although the vacancy rate has been declining, there remains significant stock on the market that must be addressed prior to measured rental rate increases. The North American industrial market is improving but time is still needed to deal with the availability of old stock. 2005 will likely see continued improvements with respect to the national industrial economy. Vacancies will continue to edge downwards while rents should see stable to light growth across the continent.
Western European industrial trends weakened somewhat in 2004 but maintained relative stability with respect to rental returns. The expansion of the European Union into the East has shed some positive light on industrial trends for Europe as a whole. These newly unified EU countries have produced opportunities for warehouse/distribution and manufacturing companies who wish to capitalize on new markets, lower employment costs and transportation hubs.
Vast infrastructure improvements in Eastern Europe should ensure a rapid drive toward maturity in these emerging markets. Industrial rental growth is expected over the next 12 months in a number of European cities. The East will continue to outperform the West with respect to industrial development opportunity as companies go in search of new and non-traditional markets.