South African property returns soar
South Africa's property market is in the middle of a strong run according to the latest figures from Investment Property Databank (IPD).
In its latest analysis of the property sector in the country, total returns of 26.7% were identified in 2006, marking the second highest annual return since the index began more than ten years ago.
While below the 2005 watermark of 30.1%, IPD said the signs were that there were large gains to be made, with longer-term statistics emphasising the point.
"The five-year annualised return is a sturdy 20.8%," said Stan Garrun, managing director of IPD South Africa.
"This is another year of stunning performance for South African commercial property," he added.
"It is the second best achieved historically and all indications are that it will rank in the top performers internationally as well."
Indeed, even the slight dip in figures on those charted in 2005 were seen as a positive sign, with the stabilisation of the market at a high level after "exceptionally high" returns in 2005 suggesting long-term prosperity.
Elsewhere IPD has found lucrative returns in other countries ÔÇô with Sweden (16.2%), the Netherlands (12.5%) and Portugal (12.0%) among them ÔÇô but South Africa's property investment returns were the highest.
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