Fears of property market bubble burst abate

However, the new supply has slowed down growth in rentals across the sector, a research report from leading property consultancy firm, Knight Frank reveals.The report says pressure has now shifted to ageing properties at Gaborone Main Mall, Government Enclave and Finance Park, where ballooning occupancy rates have driven rentals by as much as 50 percent from peaks of 2010.

On the back of aggressive and speculative construction boom in the CBD and Fairgrounds Park in the past two years, analysts had warned of a looming overheating in the market, due to the teeming growth against a static economy.But now Knight Frank says that state backed occupiers boosted office take up in 2012 with parastatals and government departments accounting for up to 65 percent of transactions recorded over the year with a number of_ the completed schemes now at or close to_100 percent occupancy in the CBD.