Real estate sector recovering after global recession of 2008

by Trust Matsilele 0

The real estate group said over the past five years global real estate has performed at about 14 per cent per year.

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“The performance in the past 24 months has performed at about 20 per cent in US dollar terms,” Franklin Templeton’s Wilson Magee told CNBC Africa.

“This has provided investors with excellent returns and very good dividends, dividend growth over time,” he added.

He said South Africa has been offering best returns in the sector over the past years especially in areas like in Johannesburg and Cape Town.

“We are not currently investing in South Africa though we see it as an attractive market in one of the emerging market areas,” said Magee.

“We are looking at our positioning in Europe on regular basis where the performance has been well both last year and this year.”

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Magee added that his organisation was however seeing some concerning trends especially due to macroeconomic backdrops in that region.

“We find property to be an attractive investment at this point because almost every market in the world, we do not have supply concerns in the world,” he said,

Magee said the supply was low going into global recession of 2008 and has been difficult for developers to get funding though this was now changing.