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Real Estate Activities in South Africa 2023

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    Report

  • 593 Pages
  • August 2023
  • Region: South Africa
  • Who Owns Whom
  • ID: 5932637

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.

 

Table of Contents


1. INTRODUCTION
2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry
3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Key Issues
3.4. Notable Players
3.5. Corporate Actions and Developments
3.6. Regulations
3.7. Enterprise Development and Social Development
4. AFRICA5. INTERNATIONAL
6. INFLUENCING FACTORS
6.1. Unforeseen Events
6.2. Economic Environment
6.3. Labour
6.4. Safety and security
6.5. Road Conditions and Infrastructure
6.6. Cyclicality
6.7. Environmental Issues and Social Concerns
6.8. Technology, Research and Development and Innovation
6.9. Government Support and Initiatives
6.10. Land Expropriation
6.11. Input Costs
6.12. Construction Costs and Activity
7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry
8. SWOT ANALYSIS9. OUTLOOK10. INDUSTRY ASSOCIATIONS
11. REFERENCES
11.1. Publications
11.2. Websites
APPENDICES - Summary of Notable Players
Appendix 1 - Commercial Property Investment and Management Companies
Appendix 2 - Property Developers
Appendix 3 - Sustainable Human Settlement (Previously RPD Housing)
Appendix 4 - Development of Leisure Resorts and Hotels
Appendix 5 - Industrial Development Zones
Appendix 6 - Residential Real Estate
Appendix 7 - Property Valuations
Appendix 8 - Bond Origination

ADDENDUM 1 - MEDICAL REAL ESTATE1. MEDICAL REAL ESTATE
2. REFERENCES
2.1 Publications
2.2 Websites
Appendix 9 - Commercial Property Investment and Management Companies in Medical Real Estate
COMPANY PROFILES - Commercial Property Investment and Management Companies
  • Accelerate Property Fund Ltd
  • Acsion Ltd
  • AFHCO Holdings (Pty) Ltd
  • Atterbury Management Company (Pty) Ltd
  • Beare Properties (Pty) Ltd
  • Broll Property Group (Pty) Ltd
  • City Lodge Hotels Ltd
  • Delta Property Fund Ltd
  • Dipula Income Fund Ltd
  • Emira Property Fund Ltd
  • Equites Property Fund Ltd
  • Eris Property Group (Pty) Ltd
  • Excellerate Real Estate Services (Pty) Ltd
  • Exemplar REITail Ltd
  • Fairvest Ltd
  • Fieldspace Property Managers (Pty) Ltd
  • Fortress Real Estate Investments Ltd
  • Free State Development Corporation
  • Growthpoint Properties Ltd
  • Hammerson PLC
  • Heriot REIT Ltd
  • Hermans and Roman Property Solutions (Pty) Ltd
  • Hyprop Investments Ltd
  • Industrials REIT Ltd
  • Inframax Holdings (Pty) Ltd
  • Ingenuity Property Investments (Pty) Ltd
  • Investec Property Fund Ltd
  • JHI Retail (Pty) Ltd
  • Legacy Hotels and Resorts (Pty) Ltd
  • Liberty Holdings Ltd
  • Maxprop Holdings (Pty) Ltd
  • Montagu Homes (Pty) Ltd
  • Oasis Crescent Property Fund
  • Oasis Crescent Property Fund Managers Ltd
  • Octodec Investments Ltd
  • Old Mutual Ltd
  • Orion Real Estate Ltd
  • Pareto Ltd
  • Passenger Rail Agency of South Africa
  • Public Investment Corporation SOC Ltd
  • Putprop Ltd
  • Rebosis Property Fund Ltd
  • Redefine Properties Ltd
  • Renprop (Pty) Ltd
  • Resilient REIT Ltd
  • RMG Management Group SA (Pty) Ltd
  • SA Corporate Real Estate Ltd
  • Sable Holdings (Pty) Ltd
  • Sanlam Ltd
  • Sargas (Pty) Ltd
  • Sirius Real Estate Ltd
  • Stor Age Property REIT Ltd
  • Strategic Real Estate Managers (Pty) Ltd
  • Texton Property Fund Ltd
  • Tourvest Holdings (Pty) Ltd
  • Tower Property Fund (Pty) Ltd
  • Tradehold Ltd
  • Trafalgar Property Management (Pty) Ltd
  • Visual International Holdings Ltd
  • Vukile Property Fund Ltd
  • Zenprop Property Holdings (Pty) Ltd
COMPANY PROFILES - Property Developers
  • Abland Investment Holdings (Pty) Ltd
  • Acsion Ltd
  • AFHCO Holdings (Pty) Ltd
  • Atterbury Management Company (Pty) Ltd
  • Eris Property Group (Pty) Ltd
  • Free State Development Corporation
  • Group Five Ltd
  • Growthpoint Properties Ltd
  • Ingenuity Property Investments (Pty) Ltd
  • Investec Property (Pty) Ltd
  • Keystone Investments (Pty) Ltd
  • Montagu Homes (Pty) Ltd
  • Rabie Property Group (Pty) Ltd
  • Renprop (Pty) Ltd
  • RPP Developments (Pty) Ltd
  • Summercon Holdco (Pty) Ltd
  • Swish Property Group (Pty) Ltd
  • TCI Properties (Pty) Ltd
  • Tongaat Hulett Developments (Pty) Ltd
  • Visual International Holdings Ltd
  • WBHO Construction (Pty) Ltd
  • Westbrook Residential Development (Pty) Ltd
  • Zenprop Property Holdings (Pty) Ltd
  • Zotos Brothers (Pty) Ltd
COMPANY PROFILES - Sustainable Human Settlement (Previously RPD Housing)
  • Calgro M3 Holdings Ltd
  • Inframax Holdings (Pty) Ltd
  • Nu-Way Housing Developments (Pty) Ltd
  • Power Development Projects (Pty) Ltd
  • Trustgro Developments (Pty) Ltd
COMPANY PROFILES - Development of Leisure Resorts and Hotels
  • City Lodge Hotels Ltd
  • Kat Leisure (Pty) Ltd
  • Legacy Hotels and Resorts (Pty) Ltd
  • Peermont Global (Pty) Ltd
  • Southern Sun Ltd
  • Sun International Ltd
COMPANY PROFILES - Industrial Development Zones
  • Atlantis Special Economic Zone Company SOC Ltd
  • Coega Development Corporation (Pty) Ltd
  • East London Industrial Development Zone SOC Ltd
  • Richards Bay Industrial Development Zone Company SOC Ltd
COMPANY PROFILES - Residential Real Estate
  • AIDA National Franchises (Pty) Ltd
  • Electronic Realty Associates (South Africa) (Pty) Ltd
  • Everybody Wins Real Estate Franchising (Pty) Ltd
  • First Realty Central (Pty) Ltd
  • Firzt Realty (Pty) Ltd
  • Geffen International Realty Franchises (Pty) Ltd
  • Jawitz Properties (Pty) Ltd
  • Just Property Group Holding (Pty) Ltd (The)
  • Leapfrog Property Group (Pty) Ltd
  • My Africa Properties (Pty) Ltd
  • Pam Golding Properties (Pty) Ltd
  • Property Referral Network (Pty) Ltd
  • Rawson Residential Franchises (Pty) Ltd
  • Realty One International Property Group (Pty) Ltd
  • Seeff Property Services (Pty) Ltd
  • Wakefields Real Estate (Pty) Ltd
COMPANY PROFILES - Property Valuations
  • Appraisal Corporation CC
  • Broll Valuation and Advisory Services (Pty) Ltd
  • Cape Value (Pty) Ltd
  • Corporate Valuations CC
  • DDP Valuers (Pty) Ltd
  • Eris Property Group (Pty) Ltd
  • Magnus Penny Associates CC
  • Mills Fitchet (East Coast) CC
  • Mills Fitchet (Gauteng) CC
  • Mills Fitchet (KZN) CC
  • Mills Fitchet (Natal) (Pty) Ltd
  • Mills Fitchet (PWV) (Pty) Ltd
  • Mills Fitchet Africa (Pty) Ltd
  • Mills Fitchet Valuations (Pty) Ltd
  • Rode and Associates (Pty) Ltd
  • S A Appraisers and Valuers CC
  • Spectrum Valuations and Asset Solutions (Pty) Ltd
COMPANY PROFILES - Bond Origination
  • BetterHome Group Ltd
  • Intelligent Debt Management (Pty) Ltd
  • MultiNET Home Loans (Pty) Ltd
  • Ooba (Pty) Ltd
COMPANY PROFILES -Medical Real Estate
  • Benchmark Group (Pty) Ltd
  • Gap Infrastructure Corporation (Pty) Ltd
  • Giflo Holdings (Pty) Ltd
  • Growthpoint Healthcare Property Holdings (RF) Ltd
  • Life Healthcare Group Holdings Ltd
  • Netcare Ltd
  • Orbvest SA (Pty) Ltd
  • Mediclinic Group Ltd

Companies Mentioned

  • Abland Investment Holdings (Pty) Ltd
  • Acsion Ltd
  • AFHCO Holdings (Pty) Ltd
  • Atterbury Management Company (Pty) Ltd
  • Axel Finance Company Ltd
  • Basinghall Properties Ltd
  • Benchmark Group (Pty) Ltd
  • BEP Developments (Pty) Ltd
  • Byrne Bros (Formwork) Ltd
  • Byrne Group Ltd
  • Byrne Plant Ltd
  • Caro Investment Holdings Ltd
  • Chorus Group Holdings Ltd
  • Chorus Group Ltd
  • Eris Properties Eswatini (Pty) Ltd
  • Eris Properties Ghana Ltd
  • Eris Properties Mozambique Ltda
  • Eris Properties Zambia (Pty) Ltd
  • Eris Property Group (Pty) Ltd
  • FB Ellmer Ltd
  • Fireblade Automotive Ltd
  • Free State Development Corporation
  • Gap Infrastructure Corporation (Pty) Ltd
  • Giflo Holdings (Pty) Ltd
  • Group Five Ltd
  • Growthpoint Properties Ltd
  • Ingenuity Property Investments (Pty) Ltd
  • Investec Property (Pty) Ltd
  • Keystone Investments (Pty) Ltd
  • Kiklo Cars Ltd
  • Kiklo Cars USA LLC
  • Kiklo Spaces Ltd
  • MAREF Mon Tresor Investments 2 Ltd
  • Montagu Homes (Pty) Ltd
  • O'Keefe Demolition (Byrne Group) Ltd
  • Orapa FRD JV
  • P137 Ltd
  • P43 Ltd
  • Pendle Russells Ltd
  • Pikes Peak Properties Ltd
  • Project 2 Holdings Ltd
  • Quanta Homes Ltd
  • Rabie Property Group (Pty) Ltd
  • Renishaw Hills Developments (Pty) Ltd
  • Renprop (Pty) Ltd
  • Riverbank House Unit Trust
  • Riverbank Unit Co Ltd
  • RPP Developments (Pty) Ltd
  • Russells Ltd
  • SK Heathrow Ltd
  • SK JV 2 Ltd
  • SK West Brom Ltd
  • Summercon Holdco (Pty) Ltd
  • Swish Property Group (Pty) Ltd
  • TCI Properties (Pty) Ltd
  • Tongaat Hulett Developments (Pty) Ltd
  • Trimantle Unit Trust
  • Urban Real Estate Partners Ltd
  • UREP Luxembourg Sarl
  • Visual International Holdings Ltd
  • WBHO Burkina Faso Sarl
  • WBHO Construction (Pty) Ltd
  • WBHO Construction UK Ltd
  • WBHO Guinea Construction Ltd
  • WBHO Guinea Projects Ltd
  • WBHO International Botswana Ltd
  • WBHO Tanzania Ltd
  • WBHO UK Ltd
  • WBHO/CCC JV
  • WBHO/MBS JV
  • Westbrook Residential Development (Pty) Ltd
  • Zeno Capital (UK) Ltd
  • Zeno Capital Ltd
  • Zenprop Property Holdings (Pty) Ltd
  • Zotos Brothers (Pty) Ltd

Methodology

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