Latest news with #GalettiCorporateRealEstate
The Citizen
2 days ago
- Business
- The Citizen
Reverse semigration fuels uptick in demand for premium office space in Gauteng
An emerging 'reverse semigration' trend is beginning to reshape Gauteng's commercial property landscape, as jobseekers and professionals increasingly return to South Africa's economic heart in pursuit of opportunity. 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
The South African
2 days ago
- Business
- The South African
Here's why South Africans are semigrating to this particular hotspot
For years, the Western Cape has been the darling of South Africa's semigration trend, being the top choice for those semigrating around the country. But the tide, it may seem, might be turning. One particular province, long written off by many in search of lifestyle perks on the coast, is quietly regaining its pull, and the driving force is simple: jobs. According to the latest Quarterly Labour Force Survey from Stats SA, Gauteng added 95 000 jobs in the most recent quarter, the largest gain in the country. By contrast, the Western Cape, despite boasting the lowest official unemployment rate at 21.1%, shed 117 000 jobs, the highest loss of any province. According to BusinessTech and Keke Khojane, GCS Head of Office at Galetti Corporate Real Estate, employment opportunities remain the number-one reason people are semigrating back to Gauteng. Khojane said that return-to-office mandates and hybrid models are currently fuelling a recovery in Gauteng's office and commercial markets. And big employers are leading the charge, it seems. Vodacom, Nedbank and Arena Holdings have all scrapped remote-first policies and reinstated five-day office attendance. This shift is steadily reducing the number of remote work opportunities available, pulling workers back into the province that still houses the bulk of South Africa's corporate headquarters. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
News24
31-07-2025
- Business
- News24
Stellenbosch market goes on sale after years-long zoning dispute
Following a years-long dispute over land use compliance with the Stellenbosch municipality, the owners of the Root44 Wine Emporium and its weekend market are putting the winelands property up for sale. The bidding process kicks off on Thursday 31 July and will be facilitated by Galetti Corporate Real Estate. In 2009, the Stellenbosch municipality granted approval to Daxcon Development Trust (DDT), the owners of the property, for the wine emporium, which was pitched as a showcase for winelands' products and food. According to Galetti Corporate Real Estate, which is facilitating the sale, in 2012, the municipality approved a temporary five-year permit that allowed for a market on the property. This became the weekend Root44 Market. After the market's permit lapsed in 2017, DDT attempted to formalise land rights for a permanent market clashed with the municipality's zoning strategy, which aimed to prevent unregulated commercial zone and urban sprawl in rural Stellenbosch. The municipality argued that the property could either be used as a wine emporium or as a market, but not both, according to a 2021 Stellenbosch municipality statement. This led to an ongoing land use dispute which ultimately led the owners to put the 5.1-hectare winelands property up for sale. 'The time has come for [...] someone with a clear vision, who is willing to continue to work with the municipality to find a resolution on the matter, to take over the property' said Dax Hunt, developer of Root44. According to Hunt, 'the businesses that run from Route 44 will, of course, continue'. But it is not clear whether or not the weekend market will continue after the sale, with Hunt explaining that it will be up to the new developer to continue with the project through further engagement with the municipality. The market hosts more than 45 vendors, selling food and drinks, art, and fresh produce. I most likely poured more into this property from an effort and love perspective than I should have as a focused investor, but that is my nature and my choice. Stellenbosch municipality had not responded to questions from News24 by the time of publication.
The Citizen
06-05-2025
- Business
- The Citizen
South Africa's commercial property sector holds steady amid political headwinds
Earlier this month, the rand approached a historic low of R19.93 against the U.S. dollar on April 9, 2025, before recovering to R18.97 by April 14. Simultaneously, the JSE All Share Index experienced significant volatility, dropping from 89,950.79 on March 31 to 82,485.81 on April 9, before rebounding to 88,162.30 by April 14. The catalyst? A 31% reciprocal trade tariff from the United States (effective April 9), that's sent shockwaves across emerging markets. It's a sharp departure from South Africa's average 7.6% tariff and effectively sidelines the benefits previously granted to Sub-Saharan African economies under AGOA. For Lesotho, where the textile and manufacturing sector makes up nearly 15% of GDP, a new 50% tariff could be devastating. That said, John Jack, CEO of Galetti Corporate Real Estate believes that 'it's not all doom and gloom'. 'South Africa kicked off 2025 on a high note, driven by lower interest rates, a stronger rand, reduced loadshedding and a boost in investor confidence,' he says. 'By mid-January, we saw solid traction, especially in the resources sector, which bolstered activity on the FTSE/JSE All Share Index. Fast-forward to now and we're seeing capital flow back into safe havens as risk-off behaviour takes hold,' As the year progressed, however, that momentum was tested. Flight to Stability: Real Estate in Focus Despite the volatility, commercial property is holding its ground—and may in fact be turning heads for the right reasons. 'The local CRE market came back strong in late 2024,' Jack notes. 'Vacancies dropped, net operating income improved, and there was a clear uptick in investor appetite. This was helped along by rate cuts, easing inflation, more consistent energy supply, and the formation of the GNU.' While global trade tensions will certainly disrupt some economic channels, Jack believes they also open the door for commercial real estate to shine: 'In periods like this, the smart money tends to chase yield and stability- and that's exactly what the right property assets offer. They're long-term, income-generating and tend to outperform when the broader market feels uncertain.' He adds, 'Not everyone is pulling their capital offshore. Many investors are simply re-evaluating—and that creates opportunity.' South Africa's real estate market continues to offer compelling yields—particularly in sectors with tight fundamentals. With bricks-and-mortar assets offering both predictability and protection, CRE is increasingly being seen as a strategic hedge. Staying Proactive in a Shifting Market In a market like this, discipline matters. Jack outlines several strategies for investors and developers looking to stay ahead of the curve: Monitor macro indicators to time moves with precision. to time moves with precision. Diversify portfolios —think retail, mixed-use, healthcare, and logistics. —think retail, mixed-use, healthcare, and logistics. Use fixed-rate debt to lock in costs while rates remain favourable. to lock in costs while rates remain favourable. Target demand-driven nodes with long-term growth fundamentals. with long-term growth fundamentals. Don't ignore regional markets —there's smart value outside of the metros. —there's smart value outside of the metros. Get flexible with leasing to keep income stable as tenant priorities evolve. 'South Africa's CRE market has been through its fair share of storms. It's proven itself resilient, especially in the face of structural constraints. Yes, short-term volatility might slow down certain deals or make tenants a bit more cautious, but the fundamentals are still there—particularly in logistics, repurposed office space, and tourism-driven assets' he concludes. Issued by: Jess Gois
IOL News
24-04-2025
- Business
- IOL News
Navigating South Africa's commercial real estate amidst political and global challenges
Between March 2017 and March 2020, SA REITs lost more than 70% of their value, and while it had clawed back nearly 68% in value excluding dividends, it remained 50% below March 2017 levels. Image: Supplied The commercial real estate sector in South Africa is being tested by a mix of local political uncertainty and mounting global trade pressure, but the market is holding up with investors adopting a wait-and-see approach. Earlier this month, the rand approached a historic low of R19.93 against the US dollar before recovering to R18.97 by April 14. Simultaneously, the JSE All Share Index saw significant volatility, dropping from 89 950.79 on March 31 to 82 485.81 on April 9, before rebounding to 88 162.30 by April 14. Meanwhile, the FTSE/JSE listed Property Index was down by only 1.34% year-to-date on Tuesday, while it was up 21.93% over a 12-month period. Over three months it was up 0.55%. The catalyst for the currency and volatility on the JSE? A 31% reciprocal trade tariff from the US (effective April 9), that's sent shockwaves across emerging markets. It's a sharp departure from South Africa's average 7.6% tariff and effectively sidelines the benefits previously granted to Sub-Saharan African economies under AGOA (African Growth and Opportunity Act). "South Africa's commercial real estate market has been through its fair share of storms. It's proven resilient, especially in the face of structural constraints. Yes, short-term volatility might slow certain deals or make tenants a bit more cautious, but the fundamentals are there—particularly in logistics, repurposed office space, and tourism-driven assets,' said Galetti Corporate Real Estate CEO John Jack in a statement. The local commercial real estate market came back strongly in late 2024, vacancies fell, net operating incomes improved, and there was an uptick in investor appetite. This was helped by rate cuts, easing inflation, more consistent energy supply, and the formation of the GNU. 'Not everyone is pulling their capital offshore; many investors are now simply re-evaluating—and that creates opportunity,' he said. 'South Africa kicked off 2025 on a high note, driven by lower interest rates, a stronger rand, reduced loadshedding, and a boost in investor confidence. By mid-January, we saw solid traction, especially in the resources sector, which bolstered activity on the JSE. Fast-forward to now and we're seeing capital flow back into safe havens as risk-off behaviour takes hold,' he said. "In periods like this, the smart money tends to chase yield and stability—and that's exactly what the right property assets offer. They're long-term, income-generating and tend to outperform when the broader market feels uncertain,' he said. The SA Reit Association's online publication said improving fundamentals in South Africa continue to point towards a return to net property income and dividend growth for the sector over the next 2 to 3 years, and the sector is better positioned to weather uncertainty that lies ahead. Jack said South Africa's real estate market continues to offer compelling yields—particularly in sectors with tight fundamentals. Bricks-and-mortar assets offered predictability and protection, and the sector was increasingly being seen as a strategic hedge. The association said SA REITs (real estate investment trusts) had rebounded 68% since the Covid-19 crash, and properties were still trading at significant discounts to net asset value, with many offering long-term upside despite short-term global market volatility.
