Commercial Real Estate Market in South Africa Report is Segmented by Type (Office, Retail, Industrial and Logistics, and Hospitality) and Key Cities (Johannesburg, Cape Town, Durban, Port Elizabeth, and Other Key Cities). The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

The South African commercial real estate market, valued at $9.62 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 10.84% from 2025 to 2033. This expansion is driven by several key factors. Firstly, a burgeoning population and increasing urbanization in major cities like Johannesburg, Cape Town, and Durban fuel demand for office, retail, and industrial spaces. Secondly, the growth of key sectors like technology and finance contributes significantly to the demand for high-quality office accommodations. Tourism's continued resurgence post-pandemic further boosts the hospitality sector's real estate needs. Finally, government initiatives promoting infrastructure development and foreign investment contribute positively to overall market expansion. However, challenges remain. Economic instability and fluctuating interest rates pose potential restraints on investment and development. Furthermore, the need for sustainable and environmentally friendly building practices, alongside effective property management, presents both a challenge and an opportunity for growth within the market. The market is segmented by property type (office, retail, industrial & logistics, hospitality) and key cities, with Johannesburg, Cape Town, and Durban dominating the market share. Key players such as Devmark Property Group, Rabie Property Group, Excellerate JHI, and Growthpoint Properties compete in this dynamic and evolving market. The forecast for the South African commercial real estate market is optimistic, predicting substantial growth over the next decade. Strategic investments in infrastructure, coupled with a focus on sustainable development and efficient property management, will be crucial for stakeholders to capitalize on the market's potential. While economic uncertainties need to be considered, the long-term outlook remains positive, particularly with sustained growth in key economic sectors. The diverse range of property types and geographical spread create numerous opportunities for investors and developers. Continuous monitoring of market trends and adapting to evolving demands will be essential for maintaining a competitive edge in this sector. South Africa Commercial Real Estate Market: A Comprehensive Report (2019-2033) This in-depth report provides a comprehensive analysis of the South Africa commercial real estate market, covering market dynamics, growth trends, key players, and future outlook. With a focus on the period 2019-2033 (base year 2025), this report is essential for investors, developers, and industry professionals seeking to navigate this dynamic market. The analysis delves into key segments, including office, retail, industrial & logistics, and hospitality, across major cities like Johannesburg, Cape Town, Durban, Port Elizabeth, and other key areas. Recent developments include: November 2023: WeWork South Africa is accelerating its expansion plans as the rise in popularity of hybrid work sees a boost in demand for flexible office spaces., September 2023: Instant Group, a flexible workspace marketplace, has acquired property advisor PSA to broaden its reach and grow its business across Africa.. Key drivers for this market are: 4., Urbanization and Population growth4.; Foreign direct investments. Potential restraints include: 4., Economic uncertainity4.; Regulatory environment. Notable trends are: Increasing office space demand in South Africa.

South Africa Commercial Property Market size was valued at USD 9.27 Billion in 2024 and is projected to reach USD 16.06 Billion by 2032, growing at a CAGR of 7.60% from 2026 to 2032.

South Africa Commercial Property Market Drivers

Urbanization and Population Growth: Increasing migration to urban centers drives demand for office spaces, retail establishments, and industrial facilities. E-commerce Boom: The growth of online shopping necessitates more logistics and warehousing facilities. Government Infrastructure Development: Investments in infrastructure projects enhance the attractiveness of the market for investors. Foreign Direct Investment: Influx of foreign capital indicates global confidence in the long-term prospects of the sector. Demand for Flexible Workspaces: The rise of co-working spaces caters to the evolving needs of businesses. Increased Technology Integration: Adoption of PropTech solutions and smart building technologies enhances efficiency and tenant experiences.

South Africa Real Estate Market size was valued at USD 22.66 Billion in 2024 and is projected to reach USD 34.51 Billion by 2032, growing at a CAGR of 5.4% from 2026 to 2032.

​The South African real estate market is influenced by several key drivers. Rapid urbanization and population growth have led to increased demand for housing and commercial properties, particularly in metropolitan areas. Economic development and foreign investment have further stimulated the market, with infrastructure improvements enhancing connectivity and making locations more attractive for development. The expansion of the middle class has resulted in higher purchasing power, driving demand for quality housing and commercial spaces. Additionally, technological advancements, such as smart building technologies and digital platforms, are transforming property management and investment strategies. Sustainability trends and compliance with environmental, social, and governance (ESG) criteria are also becoming increasingly important, influencing development practices and investor decisions. Collectively, these factors contribute to the dynamic and evolving landscape of South Africa's real estate market

Technological advancements in the South Africa Commercial Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

The South African commercial real estate market, valued at $9.28 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.63% from 2025 to 2033. This expansion is fueled by several key drivers. Increased urbanization and population growth in major cities like Johannesburg, Cape Town, and Durban are creating a surge in demand for office, retail, and industrial spaces. Furthermore, a burgeoning tourism sector and associated hospitality investments are contributing significantly to the market's positive trajectory. The ongoing development of logistics infrastructure to support growing e-commerce activity also plays a crucial role. While potential economic uncertainties and fluctuations in interest rates could pose challenges, the overall market outlook remains positive, underpinned by the continued strength of the South African economy and targeted investments in key sectors. Strong performance is expected across all segments, with the office and logistics sectors likely to see particularly substantial gains due to increasing corporate activity and supply chain optimization strategies respectively. The diverse portfolio of established and emerging property developers in South Africa, including major players like Growthpoint Properties and Amdec Group, further underscores the market's dynamic nature and competitive landscape. The segmentation of the market reveals strong growth potential within specific areas. The substantial investment in modernizing existing commercial infrastructure in Johannesburg and Cape Town will drive significant growth. Furthermore, the expansion of retail spaces in rapidly growing suburban areas will cater to evolving consumer preferences and boost market value in those regions. However, challenges remain, including the need for continued infrastructure development to support sustainable growth in key areas, particularly in logistics and transportation networks. While the overall market exhibits positive momentum, proactive strategies focused on addressing these factors will be crucial to ensure sustained, long-term growth. Careful risk management by investors and developers regarding economic volatility will be critical in navigating potential headwinds. Recent developments include: November 2023: WeWork South Africa announced that it was accelerating its expansion plans as the rise in popularity of hybrid work saw a boost in demand for flexible office spaces.September 2023: Instant Group, a flexible workspace marketplace, acquired property advisor PSA to broaden its reach and grow its business across Africa.. Key drivers for this market are: 4., Urbanization and Population Growth4.; Foreign Direct Investments. Potential restraints include: 4., Urbanization and Population Growth4.; Foreign Direct Investments. Notable trends are: Increasing Demand for Office Space in South Africa.

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Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is forecast to increase by USD 427.3 billion, at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, driven by increasing marketing initiatives and the rising emphasis on remote work and online shopping. This trend is transforming the landscape of traditional office spaces and retail sectors. The office market is evolving, with a shift towards flexible workspaces and co-working solutions, as businesses adapt to the changing work environment. Simultaneously, the retail sector is undergoing a digital revolution, with e-commerce platforms increasingly dominating consumer behavior. Meanwhile, remote work and online shopping are posing challenges for the commercial real estate sector. The shift to remote work is causing a decline in demand for traditional office spaces, while the rise of e-commerce is impacting brick-and-mortar retail stores.
These challenges necessitate innovative solutions for businesses looking to capitalize on the market's potential. For instance, commercial property owners can consider repurposing office spaces into co-working hubs or data centers to cater to the growing demand for flexible workspaces and digital infrastructure. Similarly, retailers can explore omnichannel strategies, integrating both online and offline channels to offer seamless shopping experiences and reach a wider audience. In conclusion, the market is undergoing a period of transformation, driven by marketing initiatives, the rise of remote work, and online shopping. While these trends present challenges, they also offer opportunities for businesses to innovate and adapt to the changing market dynamics.
By repurposing commercial spaces and exploring omnichannel strategies, businesses can effectively navigate the evolving landscape and capitalize on the market's potential.

What will be the Size of the Commercial Real Estate Market during the forecast period?

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The market continues to evolve, with dynamic market dynamics shaping various sectors. Rent growth and market absorption remain key indicators of market health, influencing commercial mortgages and property values. real estate agents play a crucial role in lease administration, tenant screening, and property management. Flexible office solutions and smart building technology are transforming office buildings, while building codes and zoning regulations guide construction financing and property development. Property values are influenced by due diligence, economic development, net operating income, and return on investment. Industrial properties, multifamily housing, co-working spaces, and retail spaces each face unique challenges and opportunities. Energy efficiency, green building standards, and accessibility standards are essential considerations for property managers and developers.

Capitalization rates, environmental regulations, and urban planning are integral components of investment strategies. Building automation and data analytics are revolutionizing property management, offering remote capabilities and enhanced efficiency. Virtual tours and exit strategies are essential tools for investors and property managers. Property taxes and escrow services are critical elements of the transaction process. Market research provides valuable insights into emerging trends and patterns, informing investment decisions and guiding property management strategies. Continuous adaptation to these evolving market dynamics is essential for success in the commercial real estate industry.

How is this Commercial Real Estate Industry segmented?

The commercial real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Transaction Type

  Commercial Leasing
  Property Sales
  Property Management


Service Type

  Brokerage Services
  Property Development
  Valuation Consulting
  Facilities Management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

.

By End-user Insights

The offices segment is estimated to witness significant growth during the forecast period.

The market in the US is experiencing dynamic growth, particularly in the office segment. This trend is driven by shifting work practices and corporate needs, with

The Israel commercial real estate market, valued at approximately $XX million in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) of 6.12% from 2025 to 2033. This growth is fueled by several key drivers. A thriving technology sector, particularly in Tel Aviv, consistently demands high-quality office spaces, driving significant investment in new construction and renovations. Furthermore, increasing tourism and a growing population contribute to the expansion of the retail and hospitality segments. Government initiatives aimed at infrastructure development and urban renewal further stimulate market activity. While the market faces challenges such as fluctuating interest rates and potential economic uncertainties, the strong fundamentals of the Israeli economy and persistent demand across various property types (office, retail, industrial, and residential) suggest sustained growth in the long term. The market is segmented by property type and end-user, with businesses, government entities, and individuals representing key players. Leading companies like Azrieli Group Ltd, Gazit-Globe Ltd, and Melisron Ltd are major contributors to the market's development and growth, shaping the landscape through their substantial portfolios and ongoing projects. The Middle East & Africa region, particularly the UAE, South Africa, and Saudi Arabia, shows promising investment opportunities for Israeli commercial real estate players, further contributing to overall market expansion. The competitive landscape is characterized by both established players and emerging developers. Market share is largely determined by factors such as portfolio size, development expertise, and strategic location of properties. While the historical period (2019-2024) might have witnessed some fluctuations based on global economic trends, the forecast period (2025-2033) presents a positive outlook, especially considering the long-term growth prospects of the Israeli economy and its continuously evolving real estate needs. Analyzing the performance of major players and tracking changes in regional investment patterns will be vital for understanding the sector's trajectory in the coming years. The industrial sector is likely to see strong growth due to the expanding technology and logistics sectors in Israel. Residential components, particularly in prime locations near commercial hubs, will continue to attract significant investment. Key drivers for this market are: Increasing need for contemporary office spaces, Urban and semi-urban lodging are acting as other significant growth-inducing factors. Potential restraints include: Availability of Financing. Notable trends are: Shortage of Building Land and Labor Availability.

The size and share of this market is categorized based on Type (Entrusted Service-Oriented Property Management (with The Right to Operate and Manage The Property), Self-Operated Property Management (with Property Management Rights and Property Rights)) and Application (Commercial Service Property, Office Property) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The global commercial real estate (CRE) market is experiencing robust growth, driven by increasing urbanization, expanding businesses, and a rise in e-commerce leading to higher demand for logistics facilities. While precise figures for market size and CAGR aren't provided, a conservative estimate, considering the involvement of major players like PulteHomes, Lennar, and international giants such as Evergrande and Vanke, suggests a 2025 market size exceeding $5 trillion USD. A projected Compound Annual Growth Rate (CAGR) of 4-5% over the forecast period (2025-2033) appears reasonable given current trends. Key drivers include sustained economic growth in several regions, particularly in Asia-Pacific, the ongoing shift towards experience-based retail, and the increasing demand for flexible and technologically advanced workspaces. The market is segmented by application (rental and sales) and type (community business, commerce center, and others). While the rental segment currently dominates, sales are projected to see significant growth fueled by investments from both domestic and international players. Geographic distribution reveals strong performance in North America and Asia-Pacific, with emerging markets in regions like Africa and South America showing promising potential. However, constraints such as fluctuating interest rates, geopolitical instability, and potential economic slowdowns pose challenges to sustained growth. The competitive landscape is intensely competitive, with established players facing competition from both smaller firms and new entrants leveraging technological advancements in property management and leasing. The diverse nature of the CRE market presents both opportunities and challenges for investors. The success of individual players hinges on adapting to changing market demands, strategically managing risk associated with macroeconomic factors, and effectively leveraging technological advancements to improve efficiency and operational processes. The long-term outlook remains positive, with the ongoing urbanization trend and sustained demand for commercial spaces ensuring continued growth, albeit with periods of potential volatility. The focus on sustainable and environmentally responsible development will increasingly become a significant competitive differentiator, shaping future investments and market trends. Proactive adaptation to these evolving dynamics is crucial for successful navigation of the competitive landscape.

This dataset provides information on 36 in South Africa as of June, 2025. It includes details such as email addresses (where publicly available), phone numbers (where publicly available), and geocoded addresses. Explore market trends, identify potential business partners, and gain valuable insights into the industry. Download a complimentary sample of 10 records to see what's included.

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Real Estate Market Size 2025-2029

The real estate market size is forecast to increase by USD 1,258.6 billion at a CAGR of 5.6% between 2024 and 2029.

The market is experiencing significant shifts and innovations, with both residential and commercial sectors adapting to new trends and challenges. In the commercial realm, e-commerce growth is driving the demand for logistics and distribution centers, while virtual reality technology is revolutionizing property viewings. Europe's commercial real estate sector is witnessing a rise in smart city development, incorporating LED lighting and data centers to enhance sustainability and efficiency. In the residential sector, wellness real estate is gaining popularity, focusing on health and well-being. Real estate software and advertising services are essential tools for asset management, streamlining operations, and reaching potential buyers. Regulatory uncertainty remains a challenge, but innovation in construction technologies, such as generators and renewable energy solutions, is helping mitigate risks.

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The market continues to exhibit strong activity, driven by rising population growth and increasing demand for personal household space. Both residential and commercial sectors have experienced a rebound in home sales and leasing activity. The trend towards live-streaming rooms and remote work has further fueled demand for housing and commercial real estate. Economic conditions and local market dynamics influence the direction of the market, with interest rates playing a significant role in investment decisions. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, remain popular options for buyers and tenants. Offline transactions continue to dominate, but online transactions are gaining traction.
The market encompasses a diverse range of assets, including land, improvements, buildings, fixtures, roads, structures, utility systems, and undeveloped property. Vacant land and undeveloped property present opportunities for investors, while the construction and development of new housing and commercial projects contribute to the market's overall growth.

How is this Real Estate Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Residential
  Commercial
  Industrial


Business Segment

  Rental
  Sales


Manufacturing Type

  New construction
  Renovation and redevelopment
  Land development


Geography

  APAC

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK


  South America

    Brazil


  Middle East and Africa

By Type Insights

The residential segment is estimated to witness significant growth during the forecast period.

The market encompasses the buying and selling of properties designed for dwelling purposes, including buildings, single-family homes, apartments, townhouses, and more. Factors fueling growth in this sector include the increasing homeownership rate among millennials and urbanization trends. The Asia Pacific region, specifically China, dominates the market due to escalating homeownership rates. In India, the demand for affordable housing is a major driver, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects catering to the needs of lower and middle-income groups. The commercial real estate segment, consisting of office buildings, shopping malls, hotels, and other commercial properties, is also experiencing growth.

Furthermore, economic and local market conditions, interest rates, and investment opportunities in fully furnished, semi-furnished, unfurnished properties, and rental properties influence the market dynamics. Technological integration, infrastructure development, and construction projects further shape the real estate landscape. Key sectors like transportation, logistics, agriculture, and the e-commerce sector also impact the market.

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The Residential segment was valued at USD 1440.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 64% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific region holds the largest share of The market, dr

The size and share of this market is categorized based on Type (Community Business, Commerce Center, Others) and Application (Rental, Sales) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The size and share of this market is categorized based on Residential Property Management (Single-Family Homes, Multifamily Properties, Vacation Rentals, Student Housing, Cooperative Housing) and Commercial Property Management (Office Buildings, Retail Spaces, Industrial Properties, Mixed-Use Developments, Healthcare Facilities) and Specialized Property Management (HOA Management, Real Estate Investment Trust (REIT) Management, Luxury Property Management, Commercial Leasing, Property Maintenance Services) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The global real estate services market is experiencing robust growth, driven by factors such as increasing urbanization, rising disposable incomes, and the growing popularity of online real estate platforms. The market, currently valued at approximately $5 trillion in 2025, is projected to expand at a compound annual growth rate (CAGR) of 7% from 2025 to 2033, reaching an estimated value of $9 trillion by 2033. This growth is fueled by both the residential and commercial sectors, with significant contributions from various service types, including trading and rental services. The increasing demand for professional real estate services, particularly in emerging markets, further contributes to this expansion. Technological advancements, such as the integration of artificial intelligence and big data analytics, are transforming the industry, leading to increased efficiency and improved customer experiences. Key players are adopting innovative strategies like virtual tours and property management software to cater to the evolving needs of clients. Segmentation analysis reveals a significant share held by the residential sector within the application segment, while trading services constitute a larger portion of the overall service type segment. North America and Asia-Pacific currently dominate the market, but emerging economies in regions like South America and Africa are showing promising growth potential. The market's growth, however, is not without its challenges. Regulatory changes, economic fluctuations, and the cyclical nature of the real estate market pose potential restraints. Despite these challenges, the overall outlook for the real estate services market remains positive, with consistent growth projected throughout the forecast period. The increasing adoption of technology and the growing demand for specialized services across diverse geographical areas continue to drive market expansion. The industry is undergoing a transformation, and companies are adapting their strategies to remain competitive in this dynamic landscape. Successful businesses are effectively leveraging data analytics, enhancing customer engagement, and building strategic partnerships to capitalize on emerging opportunities and maintain a robust market position.

The global commercial property insurance market was valued at USD 535.19 Billion in 2025 and is expected to reach a value of USD 828.78 Billion by 2033, registering a CAGR of 5.2% over the forecast period (2026-2033). The growth of the market can be attributed to the increasing number of commercial properties, the rising awareness of property insurance, and the increasing frequency of natural disasters. The market is expected to be driven by the growing construction industry, which is expected to lead to an increase in the demand for commercial property insurance. The increasing number of natural disasters is also expected to contribute to the growth of the market, as businesses seek to protect their assets from potential damage. The market for commercial property insurance is segmented by application, type, and region. By application, the market is segmented into small and medium-sized enterprises, large-scale enterprises, and homeowners. By type, the market is segmented into homeowners insurance, renters insurance, flood insurance, earthquake insurance, and other. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is the largest market for commercial property insurance, followed by Europe and Asia Pacific. The market in North America is expected to grow at a CAGR of 4.8% over the forecast period, while the market in Europe is expected to grow at a CAGR of 5.1% over the same period. The market in Asia Pacific is expected to grow at a CAGR of 6.2% over the forecast period, driven by the growth of the construction industry and the increasing awareness of property insurance.

The vacancy rate of office real estate increased across all major markets in South Africa between the first quarter of 2021 and the first quarter of 2022. Pretoria and the Surrounds had the lowest vacancy rate of 12.1 percent in 2022. Johannesburg, on the other hand, had the highest share of vacant office space at over 19 percent.

The Property Technology (PropTech) market, valued at $27 billion in 2025, is projected to experience robust growth, driven by several key factors. Increasing urbanization and the consequent rise in demand for efficient property management solutions are significant contributors. Furthermore, the growing adoption of mobile technology and the increasing preference for online platforms for property searches and transactions are fueling market expansion. The integration of technologies like AI, big data, and IoT within property management systems enhances efficiency and provides data-driven insights, leading to optimized operations and improved decision-making. Segmentation analysis reveals strong growth in both residential and commercial property segments, with hospitality and retail applications showing particularly high adoption rates. While challenges remain such as data security concerns and the need for robust regulatory frameworks, the overall PropTech landscape is promising, attracting significant investments and fostering innovation across the global property market. The competitive landscape is dynamic, with established players like Zillow Group and Redfin alongside emerging innovative companies like Airbnb and WeWork shaping the industry's trajectory. Regional variations are also notable, with North America and Asia Pacific exhibiting significant market shares, fueled by technological advancements and robust economic growth in these regions. However, developing regions like parts of Africa and South America show potential for future growth as technological penetration and adoption increase. The market's projected Compound Annual Growth Rate (CAGR) of 4.6% over the forecast period (2025-2033) suggests sustained expansion, with continued technological innovation and evolving consumer preferences driving market evolution and creating lucrative opportunities for stakeholders.

This statistic shows the rent per square meter for prime industrial properties in Johannesburg, South Africa in the first quarter of 2018, by market. In that period, the rent for prime industrial real estate in Midrand cost 75 South African rand per square meter.