Real Estate Activities in South Africa

This report focuses on the real estate industry which comprises commercial, industrial and residential properties, as well as property valuation and bond origination. The real estate sector contributed 5.6% to GDP, based on 2016 data. The South African listed-property sector is worth about R500bn with about 46% of the value of the sector reflecting investment in overseas markets. The real estate sector’s performance largely depends on economic drivers and has been challenged by slow economic growth during the past few years. In spite of this, the number of principal estate agents registered with the Estate Agency Affairs Board grew by 4.8% from 2016 to 2017. Property development is not showing signs of slowing down, but developers are struggling to increase occupancy rates due to oversupply.

Pressing Issues

South Africa’s real estate landscape is set to undergo major changes in the future driven mainly by regulatory changes, including land restitution, and technology disruptors. Growth in residential property prices remained subdued in the first five months of 2018 with house prices increasing 4% and 4.8% year-on-year in May. There are a number of opportunities in the sector brought about by high demand for student accommodation and gated communities and urban renewal and regeneration projects. But low projected growth rates and slowdown in economic activity could limit expansion and new development.

Report Coverage

The comprehensive 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 141 companies, including the main players in the residential real estate sector, Pam Golding Properties, RE/MAX of Southern Africa, Seeff Property Services and Harcourts Real Estate. Profiles also include Vukile Property Fund and Arrowhead which have made significant acquisitions and developers including Abland, WBHO and Renprop.