South Africa – Construction in 2011
Building and construction had a huge boost in 2011 with the hosting of The FIFA Soccer World Cup Tournament; hotels were built, stadiums, airports and roads were being built and upgraded, and the general consensus was not only positive, but South Africans were euphoric, if only temporarily.
There is a definite positive feel with the recent recovery in the world economy and interest rates are also coming down. Banks are lending again, albeit cautiously, but the National Credit Act has impacted quite substantially on the way banks are granting loans. Banks in general are granting bonds, but the days of getting 100% bonds seem to be in the distant past.
Construction and development are once more breaking ground in 2011. These mostly apply to those that have previously done all their homework. Residential property development is not as glamorous and prolific as it was in the past. It seems as if people in general are thinking on more compact and a smaller scale.
It seems as if consumerism is now being nipped in the bud.
What is of significance is that the building and construction industry is now enabling beginners to start developing once again, which is one of the South African government’s main goals, and that is to improve services to all South African’s which in turn should impact on the construction and development industry in South Africa as a whole.
For more on construction in South Africa contact us to find out more.
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