Over the last 30 years, South Africa has symbolised the triumph of political hope and the dawn of new opportunity. But it hasn’t always received the attention you might expect from the global business community.
Today, as the country reaps the benefits of a well-developed infrastructure, a world-class financial sector, and a young, highly-educated workforce, things are about to change.
Shifting work patterns
Like everywhere, South Africa was hit hard by the pandemic. Office buildings lay empty and remote work created uncertainty for landlords and property owners. But in this resilient nation, a transformation is underway in real estate – and hope is steadily returning.
One clear sign of this is how the commercial real estate (CRE) market in South Africa’s three strategic cities, Durban, Cape Town and Johannesburg, is reimagining office spaces. In these cities, offices are being transformed into environments that fit the new world of work, with cost-efficiency, flexibility, sustainability, and employee experience at the heart. You can read about the distinct characters of all three locations in our South Africa report.
Resurgence and renewal
Prestigious buildings are experiencing a revival in leased space, offering inspiring environments for a demanding workforce. Some buildings are even reinventing themselves as vibrant residential communities, attractive student housing, and essential storage facilities.
The combined impact is remarkable. The Rode’s Report, a leading property , forecasts growth for South Africa’s commercial real estate market from $8.68 billion in 2023 to $14.5 billion by 2028.
From outsourcing to expansion
At the heart of this surge are the Business Process Outsourcing (BPO) and Global Business Services (GBS) sectors. Entrepreneurial spirit and support from government initiatives has helped them to astounding annual growth of 13.2% over the last five years, and over $2 billion in annual revenue. South Africa is now at the forefront of the global BPO and GBC industries, rivalling India, Malaysia, Mexico, and the Philippines.
However, real estate opportunities and a plentiful supply of highly-skilled talent are also attracting a range of other growing companies. South Africa offers a gateway to exciting new markets, attractive lifestyle options, a convenient time zone that’s conducive to collaboration with Asia, Europe, UAE, and the Americas, and a regulatory framework and business culture that align with UK and US practices.
Expert guidance
Of course, there are still many challenges in South Africa’s CRE sector, and newcomers would be wise to partner with reputable local professionals to help navigate the political, economic, legal, and cultural landscape. Luckily, we have a team of experts that can steer you through the maze, blending local insight with global best practice.
With immense potential rewards on offer, maybe it’s time for you to explore how you could thrive in South Africa’s dynamic business environment.
