While the South African economy may not match the rest of the BRICS nations, the country is ranked 23rd out of 81 in Jones Lang LaSalle’s World’s Most Transparent Real Estate Markets, placing it well ahead of its emerging counterparts and on the African continent.
According to Jones Lang LaSalle’s Global Foresight research paper on local real estate, factors that contribute to South Africa’s high transparency ranking include robust listed vehicle governance, strong auditing and reporting standards, a highly-developed legal system, the fairness and efficiency of the regulatory framework relating to real estate taxation, planning and building codes, enforceability of contracts and title, and a strong tradition of property rights.
“In the few weeks since entering the South African market, Jones Lang LaSalle is enthusiastic about the potential this country has to offer in the real estate sector. The outlook for local commercial real estate places the country in a position to offer international investors a compelling real estate investment case,” says Andrew Bradford, Jones Lang LaSalle South Africa.
South Africa has well-developed and good quality commercial real estate stock, much of which is built to international standards. With a total office stock in its four main markets (Johannesburg, Cape Town, Durban and Pretoria) of 14.5 million square metres, its office market is comparable in size to cities such as Madrid, Brussels, and Moscow. Green buildings are gaining momentum, with recent certifications setting a new standard in sustainable development on the continent.
“As a country, we are becoming increasingly confident in our ability to offer international investors the stability and sophisticated skills-set they look for. As a company, we’re excited about the prospects of the local real estate market and braced for the increased attention South Africa will receive in this regard,” adds Bradford.
The country’s structural framework provides the foundations for the future growth of South Africa’s real estate investment market over the next decade. As a relative haven for capital and people in Africa, South Africa has significant potential as a global business location, where main cities will gain in international profile and emerge as rising urban stars in the next ten years.
* This report was prepared by Jones Lang LaSalle