For the commercial property sector, 2018 was a tough year characterised by market slowdown and uncertainty. Generally increasing costs and taxes, combined with anxiety over land expropriation, culminated in something of a bleak year for the sector in 2018.

But it seems 2019 may be a more positive time - even if we're not quite out of the woods yet. For one thing, Minister Tito Mboweni elected not to raise capital gains tax in his 2019 Budget Speech - obviously a welcome relief for the commercial property world.

Let's take a brief look at some of the other factors potentially affecting the sector in 2019.

5 Factors from the 2019 National Budget set to affect Commercial Property

1. Fuel Price Hikes

2019 brings expected hikes in the fuel price levy of 29 to 30 cents. Rising fuel costs affect the way people live, work and travel, which is something business owners need to be cognisant of. How far are people travelling to get to work? How much is it costing them? We may see some movement this year as companies look to be more centrally located in order to cut down on travel time and help employees manage these fuel price hikes.

2. Focus on Business Development

In more optimistic news, the Budget's focus on job creation means more support for small businesses and incentives for industrial businesses. A growing job market means a strengthened economy and a greater demand for workspaces and property, creating a healthier outlook for the property sector.

3. Construction Industry

Connected to the first point, a rise in fuel costs means an indirect spike in the cost of building materials, transportation and other factors involved in building and refurbishing properties. While this is likely to affect the construction of new developments (and those undergoing substantial refurbishment), it may compel landlords to clean up their existing B-grade stock, repurposing or freshening up their buildings to make them more appealing to prospective buyers or tenants.

4. Eskom

Our current reality is that Eskom is in the midst of financial crisis, and an unpredictable electricity grid does not spark confidence in investors. In this climate, the greener your premises can go, the better. It's in landlords' best interests to go off-grid as much as possible and to invest in reliable, alternative energy sources. It's undeniable that prolonged load-shedding affects every aspect of the country, dampening investor confidence and ultimately hurting the economy.

5. Carbon Tax

The introduction of Carbon Tax in June 2019 is expected to put pressure on the industrial sector, and by extension, industrial property. Materials are likely to increase in price and businesses will be expected to place greater emphasis on sustainable solutions. There may be a knock-on effect for tenants as businesses navigate these new costs.

More Positive Take-Outs from the 2019 Budget Speech

While no one is under the impression that 2019 will be a cakewalk, there were several positive aspects to the Budget Speech. Job creation and business development, plus a drive to attract highly skilled individuals to the country, are all aspects that create greater demand for property. Continued investment in the tourism sector, particularly relaxing visa requirements, is another element driving the need for more commercial property.

As it may take some time yet for the market to fully recover from its 2018 dip, it's likely that this will be a year of property price stabilisation. As the buyers' market looks set to continue into the year, there'll be a focus on value for money and returns.

There's no doubt that this is set to be a fairly eventful year - Eskom and the elections are two major factors that stand out - but let's approach it with cautious optimism and agility.