Market Size of South Africa Commercial Real Estate Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.62 Billion |
| Market Size (2029) | USD 16.09 Billion |
| CAGR (2024 - 2029) | 10.84 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Commercial Property South Africa Market Analysis
The South Africa Commercial Real Estate Market size in terms of Equal-10.84 is expected to grow from USD 9.62 billion in 2024 to USD 16.09 billion by 2029, at a CAGR of 10.84% during the forecast period (2024-2029).
- Before the COVID-19 pandemic, the commercial real estate sector faced difficulties. These were likely to last for a while due to changes in work practices brought on by the pandemic. These were to also probably worsen as the impact of "shadow vacancies" became more evident, leading to an increase in the number of vacant properties. Many businesses wanted to downscale their physical workplaces in favor of the smaller office spaces required for hybrid workforces.
- On the plus side, most urban centers are demanding affordable residential housing. Since many of these pre-existing commercial buildings have services, repurposing them is generally simple and affordable. This tendency is already well established in many cities, and as more offices fall empty in the upcoming months and years, it will pick up speed.
- Aside from saving money, repurposing a building also eases the burden on governments, which are already under strain to provide services and utilities. The fact that these converted buildings are already situated within cities further reduces the need for inhabitants to commute, decreasing traffic and the strain on public transportation infrastructure.
- While the current state of the global economy is putting pressure on investors in most segments of the domestic real estate market, Makhosini Ndlovu, product head at FNB Commercial Property Finance, claims that those who have invested in student housing continue to see strong returns.
- Yields remain very good for some universities, such as the University of Cape Town (UCT). Regardless of how many approvals are given for the construction of student housing near UCT, domestic and international demand for study opportunities will likely maintain demand for housing in the upcoming years.
