Reverse semigration fuels uptick in demand for premium office space in Gauteng
While the Western Cape continues to attract residents with its lifestyle offering, new data points to this growing inland movement that's reigniting demand for well-positioned rental office space across Johannesburg and Pretoria.
According to the Wise Move Migration Report 2025, nearly a quarter of Western Cape movers are returning to Gauteng or trying their luck in Gqeberha. Despite a net outflow in 2024, Gauteng still leads in internal migration, accounting for over 60% of all intra-provincial moves.
Employment remains the key driver, with 22.9% of respondents citing job opportunities as their primary reason for relocating to the province. Family connections follow at 15.5%, signalling a broader re-engagement with Gauteng's core urban centres.
The latest Quarterly Labour Force Survey from Stats SA further reinforces this sentiment, highlighting a net employment gain of 9,000 jobs in Gauteng. This is in sharp contrast to substantial losses in KwaZulu-Natal (down 104,000), the Eastern Cape (down 83,000) and the North West (down 57,000).
'These stats speak to Gauteng's continued status as South Africa's employment engine,' says Keke Khojane, GCS Head of Office for Galetti Corporate Real Estate. 'Job creation remains concentrated in Johannesburg and Pretoria, which translates into renewed demand for quality, strategically located commercial office space.'
Office Market Enters Recovery Phase
'The latest data from the Rode Report Q1 2025 reaffirms South Africa's office market's modest yet steady recovery. Vacancy rates have begun to decline from 2024's highs, with weighted gross market rentals for decentralised grade-A office space climbing 4.8% year-on-year,' says Khojane.
Prominent employers such as Vodacom, Nedbank and Arena Holdings have already formalised the five-day return-to-office after revising their remote working policies. This move is impacting office demand by placing renewed emphasis on layout, location and long-term tenant value.
'Companies are no longer just looking for space, they're looking for rental properties that support productivity, collaboration and cultural cohesion in sought-after locations.'
This is also being driven by growing confidence in government-led urban investment. Khojane says the City of Johannesburg's Inner-City Revitalisation Plan signals real intent from government to uplift the urban core, and that ripple effect is extending into decentralised hubs like Houghton and Hatfield.
'We're seeing this echoed in Pretoria, where the Tshwane Economic Development Agency's strategy is looking to boost regional economic growth by 3.9% by 2029. The fast-tracking of high-impact projects is expected to attract sustained investment and reinforce the commercial real estate recovery.'
Demand for Premium Office Space Rising
As more organisations adapt to hybrid work models, office space is required to do more than simply house employees; it also needs to attract and retain them. This has led to an increase in demand for offices situated near residential zones, key transport routes and lifestyle amenities.
'Today's businesses are looking for spaces that are accessible, secure and aspirational,' says Khojane. 'Houghton, in particular, has emerged as Johannesburg's second business hub after Sandton – with good reason.'
With proximity to elite schools, the M1 motorway, top-tier golf courses, Melrose Arch and Gautrain access, Houghton offers both lifestyle and logistical advantages that few nodes can match.
Leasing Provides Business Flexibility
Khojane adds that investor appetite is rising for Gauteng-based commercial properties, especially those offering long-term leases and proximity to high-demand urban locations. 'We're seeing a marked increase in demand for flexible, high-quality office space that meets these evolving workforce expectations and changing operational strategies.'
Leasing is also becoming an increasingly attractive option for businesses looking to secure prime real estate without the capital demands of ownership. Some key advantages of leasing include:
Lower upfront capital outlay, especially beneficial for SMEs and start-ups
Flexibility to adapt to shifting economic climates
Immediate access to sought-after locations like Houghton and Hatfield
Reduced maintenance and operational responsibilities
Issued by Jess Gois
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