Cape water crisis highlights larger challenge for property owners and developers
The most obvious impact will be the effect on the price of water.
If government wants to build the new water infrastructure we so desperately need, it will first have to find the funds.
For property owners, this will add complexity to their relationship with their tenants.
Simply passing on the costs to tenants or arbitrarily making provisions for additional increases will not endear them to their paying customer.
Buyers are reticent about the future of Cape Town as the threat of queuing for water looms large, opting for more water secure coastal towns instead.
Lenders want to see that everything possible has been done to ensure new developments are not at the mercy of municipal services.
This means making the development as marketable as possible.
In fact, just as was the case with generators during load shedding, lenders are even looking at funding water-saving initiatives and equipment.
This will only increase as climate change takes its toll.
It makes sense to begin planning for these changes now, and finding an investment partner who can help you do that.