How the increase in Repo Rates affects commercial property

Office-space-to-rentOn Thursday, the Reserve Bank increased interest rates by 25 basis points to 5.75% citing rising inflation concerns. What does this mean for you as someone who is considering renting or buying commercial property in South Africa?

Commercial property is a property that you would like to buy for business purposes. You can either finance the property through an investor or by applying for a commercial property from banks like Nedbank and Absa.

It is often difficult to find investors these days, but banks have made it simple for you by providing you with the option to take out a loan. Depending on which bank you choose to approach, each bank will have a different interest rate, so with a little research through the financial institutions’ websites, you can decide which one you would like to go with.

However, with the increase of 5, 75% repo rate, many are wondering how this will affect their chances of acquiring a commercial property loan. But according to reports, the repo rate is unlikely to have any impact on South Africa’s property industry. This should come as good news to someone who has a business and a dream of buying property.


Although the economy is not doing so well in South Africa today, due to strikes and the high rate in crime that is throwing investors off, there is a good and bad side to the economy that leaves us feeling full of courage and dread at the same time. The economy went flat in the first section of the year and currently the growth outlook for the remainder of the year is quiet, so we are currently faced with a very unpredictable economy.

But the affects from the strikes and the high inflation will not have a long term effect on the funding rates and should not subsidise to a slowdown in economic action.

So even with the slow consumption expenditure, and the declining confidence in the economy, mainly in the private industry, the South African economy is not in a position to captivate significant interest rates hikes at any moment.

This means you can focus on finding the perfect commercial property and the perfect investor. Nedbank has a great commercial property funding system, their approach is encouraged by that need to carefully match each client’s needs.

Therefore, interest rates are going to remain at lower levels for a little longer. This should be good news for current property holders as well as people who are considering getting commercial property financing.


Nothing beats an opportunity to have your own commercial property for your own business. It is a chance for you to flourish and focus more on the economic game than on problems of commercial property financing. Visit your nearest financial institution and find out if you qualify for a commercial property loan.

Are you looking for office space to rent? For commercial property to rent or for sale visit the Junk Mail website.

Yolanda Zondo

Writers see the world differently. Every voice we hear, every face we see, every hand we touch could become story fabric

You may also like...

Leave a Reply

Your email address will not be published.

eighteen − two =