Real Estate Returns in South Africa Driven by Rental Growth and GDP
Limited research exists on what drives the performance of commercial real estate in South Africa. A study looked at data from 1994 to 2014 to understand what affects the returns on these properties. They found that rental income growth and the country's economic growth rate are the main factors influencing commercial real estate returns. This means that how much money you make from renting out a property and how well the economy is doing are closely linked. Understanding these factors can help investors make better decisions about where to put their money in real estate.