The industrial market in South Africa is achieving major rental increases.

According to Rodes Report on the South African Property Market, compiled by property economists Rode & Associates, low vacancies and an almost 4% growth in manufacturing volumes since the last quarter of 2003 resulted in robust growth in industrial rental and stand values last year.

"Real industrial rentals are still growing at a rate that beats building-cost inflation," says Erwin Rode, property economist at Rode & Associates.

Rode expects industrial rentals to post further robust growth this year because of the positive outlook for the economy.

Rentals on the West Rand grew almost 30%, while in the central Witwatersrand area they rose 16,6%. Rentals increased nearly 20% in Durban and 14,4% in Port Elizabeth. The report says the Cape Peninsula recorded a nominal growth rate of almost 11% last year.