South Africa Real Estate Industry Analysis 2023: Remote Working is a Significant Driver of the Property Market, Increasing Demand for Properties in Areas Outside Major Cities

DUBLIN, Feb. 20, 2024 /PRNewswire/ — The “Real Estate Activities in South Africa 2023″ report has been added to  ResearchAndMarkets.com’s offering.

The South African real estate market is fragmented and includes numerous local and global players. Property price growth has remained steady, including throughout the pandemic, although some subsectors, such as commercial properties, were significantly affected.

Listed property shares fell by more than 45% in 2020, before recovering. In commercial property, rental vacancies increased, and property valuations decreased. Property owners’ operating costs are growing, and service delivery of local municipalities continues to deteriorate. Many commentators fear that the Expropriation Bill will lower investor confidence. Rental growth has been slower than the growth in house prices.

Investment in commercial real estate grew for the second consecutive year in 2021 but dropped by approximately 20% in 2022. In 2021, investment in the alternative property market (co-working offices, data centres, retirement homes, self-storage, student housing and cold storage) and hospitality sector (hotels, restaurants, entertainment facilities) increased, mainly at the expense of the industrial and commercial sectors.

Opportunities

Demand for environmentally-friendly and recycled furniture is growing.

High shipping costs favour flatpack furniture. Logistics challenges and higher shipping costs have made it more expensive to import, therefore favouring local manufacturing (nearshoring). Productivity SA’s business turnaround and recovery programme is available to struggling companies. The designation of furniture for procurement by state entities. The hybrid work trend is driving demand for lighter, mobile home office furniture, as well as hot desk furniture.

Challenges

Any future global supply chain challenges could increase raw materials costs.

Competition from imports. Declining shipping fees and the falling oil price could make it more affordable to import than previously. Higher inflation has lowered consumer’s ability to afford new furniture purchases. Increasing cost of electricity, water, raw materials, transport and labour. Loadshedding. Local logistics challenges make it expensive to transport goods and raw materials. The weak local and global economy will likely reduce sales and exports.

Trends

A shortage of higher-skilled employees. A shortage of local and imported raw materials. Declining investment in capital equipment. Inadequate investment in skills development. Insufficient research and development. Little design improvement or new product development.

Outlook

Uncertainty has caused some investors to hold back, and some international investors are selling as investor sentiment worsens. The Rode Report said the real estate market will be “stuck in low gear for years to come”. Remote working will be a significant driver of the property market, likely increasing demand for properties that offer flexible working arrangements and those in areas outside major cities. More property owners and developers are looking for properties that are self-sufficient and sustainable.

Residential properties are likely to continue to perform well. Commercial property may face some challenges, particularly in city centres. Warehouses and logistics centres may perform well due to the growth of ecommerce.

Report Coverage

This report focuses on the real estate industry which comprises commercial, industrial and residential properties, as well as property development, property valuation and bond origination. It includes comprehensive information on values, purchase prices and transfers and rental and vacancy trends, developments and corporate actions of JSE-listed companies, developers and estate agents.

There are profiles of 123 companies including commercial property companies such as Growthpoint, Hyprop, Redefine and Vukile, developers such as Keystone, WBHO and Renprop, leisure resort and hotel developers including Southern Sun and Sun International and residential real estate companies such as Seeff, Rawson and Pam Golding as well as several valuation and bond origination companies.

COMPANY PROFILES – Commercial Property Investment and Management Companies

Accelerate Property Fund LtdAcsion LtdAFHCO Holdings (Pty) LtdAtterbury Management Company (Pty) LtdBeare Properties (Pty) LtdBroll Property Group (Pty) LtdCity Lodge Hotels LtdDelta Property Fund LtdDipula Income Fund LtdEmira Property Fund LtdEquites Property Fund LtdEris Property Group (Pty) LtdExcellerate Real Estate Services (Pty) LtdExemplar REITail LtdFairvest LtdFieldspace Property Managers (Pty) LtdFortress Real Estate Investments LtdFree State Development CorporationGrowthpoint Properties LtdHammerson PLCHeriot REIT LtdHermans and Roman Property Solutions (Pty) LtdHyprop Investments LtdIndustrials REIT LtdInframax Holdings (Pty) LtdIngenuity Property Investments (Pty) LtdInvestec Property Fund LtdJHI Retail (Pty) LtdLegacy Hotels and Resorts (Pty) LtdLiberty Holdings LtdMaxprop Holdings (Pty) LtdMontagu Homes (Pty) LtdOasis Crescent Property FundOasis Crescent Property Fund Managers LtdOctodec Investments LtdOld Mutual LtdOrion Real Estate LtdPareto LtdPassenger Rail Agency of South AfricaPublic Investment Corporation SOC LtdPutprop LtdRebosis Property Fund LtdRedefine Properties LtdRenprop (Pty) LtdResilient REIT LtdRMG Management Group SA (Pty) LtdSA Corporate Real Estate LtdSable Holdings (Pty) LtdSanlam LtdSargas (Pty) LtdSirius Real Estate LtdStor Age Property REIT LtdStrategic Real Estate Managers (Pty) LtdTexton Property Fund LtdTourvest Holdings (Pty) LtdTower Property Fund (Pty) LtdTradehold LtdTrafalgar Property Management (Pty) LtdVisual International Holdings LtdVukile Property Fund LtdZenprop Property Holdings (Pty) Ltd

COMPANY PROFILES – Property Developers

Abland Investment Holdings (Pty) LtdAcsion LtdAFHCO Holdings (Pty) LtdAtterbury Management Company (Pty) LtdEris Property Group (Pty) LtdFree State Development CorporationGroup Five LtdGrowthpoint Properties LtdIngenuity Property Investments (Pty) LtdInvestec Property (Pty) LtdKeystone Investments (Pty) LtdMontagu Homes (Pty) LtdRabie Property Group (Pty) LtdRenprop (Pty) LtdRPP Developments (Pty) LtdSummercon Holdco (Pty) LtdSwish Property Group (Pty) LtdTCI Properties (Pty) LtdTongaat Hulett Developments (Pty) LtdVisual International Holdings LtdWBHO Construction (Pty) LtdWestbrook Residential Development (Pty) LtdZenprop Property Holdings (Pty) LtdZotos Brothers (Pty) Ltd

COMPANY PROFILES – Sustainable Human Settlement (Previously RPD Housing)

Calgro M3 Holdings LtdInframax Holdings (Pty) LtdNu-Way Housing Developments (Pty) LtdPower Development Projects (Pty) LtdTrustgro Developments (Pty) Ltd

COMPANY PROFILES – Development of Leisure Resorts and Hotels

City Lodge Hotels LtdKat Leisure (Pty) LtdLegacy Hotels and Resorts (Pty) LtdPeermont Global (Pty) LtdSouthern Sun LtdSun International Ltd

COMPANY PROFILES – Industrial Development Zones

Atlantis Special Economic Zone Company SOC LtdCoega Development Corporation (Pty) LtdEast London Industrial Development Zone SOC LtdRichards Bay Industrial Development Zone Company SOC Ltd

COMPANY PROFILES – Residential Real Estate

AIDA National Franchises (Pty) LtdElectronic Realty Associates (South Africa) (Pty) LtdEverybody Wins Real Estate Franchising (Pty) LtdFirst Realty Central (Pty) LtdFirzt Realty (Pty) LtdGeffen International Realty Franchises (Pty) LtdJawitz Properties (Pty) LtdJust Property Group Holding (Pty) Ltd (The)Leapfrog Property Group (Pty) LtdMy Africa Properties (Pty) LtdPam Golding Properties (Pty) LtdProperty Referral Network (Pty) LtdRawson Residential Franchises (Pty) LtdRealty One International Property Group (Pty) LtdSeeff Property Services (Pty) LtdWakefields Real Estate (Pty) Ltd

COMPANY PROFILES – Property Valuations

Appraisal Corporation CCBroll Valuation and Advisory Services (Pty) LtdCape Value (Pty) LtdCorporate Valuations CCDDP Valuers (Pty) LtdEris Property Group (Pty) LtdMagnus Penny Associates CCMills Fitchet Rode and Associates (Pty) LtdS A Appraisers and Valuers CCSpectrum Valuations and Asset Solutions (Pty) Ltd

COMPANY PROFILES – Bond Origination

BetterHome Group LtdIntelligent Debt Management (Pty) LtdMultiNET Home Loans (Pty) LtdOoba (Pty) Ltd

COMPANY PROFILES – Medical Real Estate

Benchmark Group (Pty) LtdGap Infrastructure Corporation (Pty) LtdGiflo Holdings (Pty) LtdGrowthpoint Healthcare Property Holdings (RF) LtdLife Healthcare Group Holdings LtdNetcare LtdOrbvest SA (Pty) LtdMediclinic Group Ltd

For more information about this report visit https://www.researchandmarkets.com/r/bp8vma

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]
 
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
 
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

View original content:https://www.prnewswire.com/news-releases/south-africa-real-estate-industry-analysis-2023-remote-working-is-a-significant-driver-of-the-property-market-increasing-demand-for-properties-in-areas-outside-major-cities-302066479.html

SOURCE Research and Markets