Real Estate Activities in South Africa

The total value of South Africa’s property sector, which comprises commercial and residential properties, was an estimated R5.8-trillion in 2014/15 up from R4.9-trillion at the end of 2010. This exceeds total annual GDP and makes the sector a critical part of the economy. Formal residential property still accounts for nearly three-quarters of property owned in the country, and grew in value from an estimated R3-trillion at the end of 2010 to R3.9-trillion. In the commercial sector the Retail property sector has the highest value at R534bn.

Pressing Issues

The commercial property sector is confronted by numerous problems: the contraction of the economy, on both a national and international level; the contraction of rental growth numbers as well as unsecured lending, particularly in the retail sector, which is placing significant stress on the economy; and the skills deficit in the sector. At the same time, industry bodies and government realise the importance of creating an attractive and inviting investment environment for local and international investors.

Property Development

In this vibrant sector there have been many joint ventures between property developers and financial institutions and public-private partnerships with local, provincial or national government. The major dealmakers during 2015 were Atterbury, Attacq, Redefine Properties, Sanlam Properties, Emira Property Fund, Actis and the Government Employees Pension Fund represented by the Public Investment Corporation (PIC). Rand Merchant Bank has entered the property development sector through a number of transactions with property funds locally and in Africa. Construction companies such as Basil Read and G5 Properties, a subsidiary of Group Five, have also entered the real estate market as developers, equity participants and asset managers.

Report Coverage

The detailed report on South African Real Estate Activities describes current conditions and recent developments in all sub-sectors, as well as factors influencing the success of the sector. The report profiles 138 companies, including the main players in the residential real estate sector, Pam Golding Properties (Pty) Ltd, RE/MAX of Southern Africa, Seeff Property Services (Pty) Ltd and Harcourts Real Estate.