Industrial Property Trends for 2025
South Africa is set to have a strong financial year with positive predictions concerning the global markets and the strength of the Rand. In the real estate sector, expect residential property values to grow, along with the demand for industrial buildings such as warehouses. Commercial properties intended for business use will also be sought-after, as e-commerce steadily rises and locations increase for distribution hubs.
The rise in online shopping over the festive season further highlighted the growing demand for warehouses and distribution centres. While retailers with physical stores continue to remain popular choices, the shift to a digital marketplace is evident. However, products and goods need to be assembled, packaged and distributed from a reliable, organised source. The industrial property market is an ever-changing landscape with some key factors to look out for over the coming year.
Office spaces - redesigned and reimagined
As hybrid work models take over the corporate arena, the traditional office space is being transformed to suit modern business needs. New and improved commercial office spaces now offer high-end facilities such as relaxation pods, co-working hot desks, communal boardrooms and pop-up food and beverage stations. This will result in more mixed-use developments taking the lead. Combining innovative property dynamics with a classic appeal like ample parking space is a surefire way to capture the hybrid working environment.
Warehousing - with different industries comes greater storage responsibilities
Urban areas experience high surges of consumerism throughout the year. With the demand for goods and services to be delivered conveniently, sustainability has also become a factor. Business owners and tenants want to occupy a space that is energy-efficient and solar-powered where possible. Eco-friendly initiatives have taken over warehouse awareness and water-saving, waste reduction and recycling methods are new contenders on warehouse checklists.
Retail centres - shifting shopping demands
As consumers change the way they shop and the products they consume, so too will the industrial property market adapt to meet these needs. In 2025, the retail market is set to enter an era of experiential shopping, convenience over everything and e-commerce integration. As such, lifestyle shopping destinations have become a trend with focus being placed on providing a one-stop shopping solution. The consumer is treated to a variety of options like food, wellness, beauty and entertainment in the retail arena. Anchor grocery stores keep shopping centres abuzz, while experiential retailers offer to occupy more shopping time.
Green buildings - make an impact on a global scale
South Africa is a developing country with immense potential. We are one of the African continent's greatest countries, with economic diversity and an abundance of natural resources. We have to be mindful of our environmental, social and governance indicators as these are non-negotiable discussions for the industrial property market going forward. Sustainability in green design, lessening the carbon footprint and prioritising community upliftment is crucial in achieving long-term success. Industrial buildings designed in this vein will attract quality buyers and tenants who are serious about changing the perception industrial construction has on the environment.
Invest wisely for greater returns
Newpoint Property Group is a leader in our field. With sought-after warehouses, business park addresses and quality locations featured on our listings, we provide property investors with the best tools to succeed in the commercial and industrial real estate market. Contact us to get the ball rolling and receive expert guidance and advice from our experienced property practitioners.
14 Jan 2025
Author Newpoint Property Group