8 Expert Tips for Investing in South African Commercial Property in 2025
Stay ahead of the curve with these strategic insights for navigating South Africa’s evolving commercial real estate market.
In 2025, investing in South African commercial property is less about chasing the next big thing and more about aligning with long-term trends, structural shifts, and pockets of real growth. Knowing where the momentum is heading — and why — will determine whether your portfolio thrives or dives.
Paul Stevens, CEO of Just Property, breaks down eight essential strategies every investor should consider when entering the South African commercial property arena this year.
1. Choose Your Location Wisely: It’s About the Future, Not the Past
Location still reigns supreme — but not in the way it used to. In 2025, visibility and accessibility are great, but future-readiness is better. Stevens advises investors to target areas undergoing infrastructure upgrades, precinct revitalisations, and special economic zone (SEZ) developments.
Hotspot tip:
Cape Town continues to outperform other metros, with strong governance, urban regeneration, clean energy policies, and thriving transport corridors making it the darling of discerning investors.
2. Watch Vacancy Rates, Not the Hype
Don’t be distracted by flashy new builds or slick marketing — vacancy rates are the real compass. High vacancies mean oversupply and underperformance. Low vacancy rates? That’s where rental escalation and healthy tenant competition live.
Stevens highlights that prime office spaces in Cape Town’s CBD and Century City are nearing record-low vacancies, signalling renewed market strength. For retail, focus on centres offering a blend of grocery, lifestyle, and essential services.
3. Industrial Property Is Still the Star Performer
Logistics, warehousing, and last-mile delivery continue to boom — a trend accelerated by the pandemic and now entrenched in the economy. This sector is all about location, flexibility, and sustainability.
Top industrial investment traits:
- Proximity to major arterial roads, ports, and freight hubs
- Multi-use designs that can cater to various tenants
- Green infrastructure like solar panels and water harvesting systems
4. Zoning, Bulk Rights & Development Potential Matter
If you’re eyeing development, make sure the land is properly zoned or has good rezoning prospects. Understanding building lines, parking ratios, and bulk rights is crucial before you break ground.
Municipal engagement is key here. Tap into precinct development plans and future service rollouts. And if you’re retrofitting an older property? Prepare for regulatory headaches and compliance upgrades — energy standards, fire regs, and heritage overlays can complicate things.
5. Follow the Money: Building Plan Approvals Speak Volumes
Municipal records showing spikes in building plan approvals can reveal where developers are placing long-term bets. If new industrial or mixed-use nodes are popping up, that’s usually a sign of confidence and demand.
Be equally alert to declines in approvals, especially in sectors like large office developments, which are still recovering from the post-remote work slump.
READ: Gauteng Secures R312.5 Billion in Investments at Inaugural 2025 Gauteng Investment Conference
6. Understand the Economic Climate: Interest Rates & Lending
Commercial property is capital-heavy, and right now, interest rates are stable but cautious. The SARB’s easing cycle began in late 2024, but inflation and global uncertainty have put the brakes on aggressive cuts.
This environment favours investors with equity or patient capital, and banks are looking for clear business cases and tenant commitments before lending.
7. Know Where We Are in the Property Cycle
Commercial property is cyclical, and not all asset classes are created equal. Right now:
- Offices are in a recovery phase, especially decentralised nodes with high-end infrastructure.
- Retail is steady in smaller centres but challenged in mega malls.
- Industrial continues to outperform, riding the logistics boom.
- Hospitality and student housing are bouncing back with tourism and campus life returning.
Timing your investment by cycle phase can prevent overexposure and maximise upside.
8. Regulatory Clarity = Risk Management
From zoning laws to tax regulations, a lack of regulatory awareness can torpedo your investment. South Africa’s Property Practitioners Act and shifting municipal bylaws shape everything from commission mandates to electricity resale.
Stevens says it plainly: “The commercial property market rewards insight, not speculation.” That means doing your homework, working with reputable brokers, and targeting areas with solid fundamentals and forward momentum.
Commercial Property is a Long Game — Play It Smart
Success in 2025 is about anticipating trends, building strategically, and investing with clarity and caution. With rising demand for logistics space, growing investor confidence in well-managed metros, and new tools for data-driven decision-making, commercial property in South Africa remains one of the most promising sectors for those who get the fundamentals right.