Commercial Real Estate Trends South Africa Should Watch in 2026
Insights from John Jack, CEO of Galetti Corporate Real Estate
South Africa’s commercial property sector enters 2026 with more confidence than it has seen in years. After a strong performance in 2025 – supported by improving vacancies, rental growth and resilient investor sentiment – the market is showing signs of sustainable momentum. And for investors, the opportunities are increasing.
While industrial remains the top performer, retail and office nodes are steadily strengthening, and REITs continue to deliver impressive returns. The latest Rode Report confirms what many in the industry are already experiencing on the ground: stabilisation has taken hold, and activity is picking up.
Below, we unpack big trends shaping the year ahead.
1. REITs Continue to Outperform
South Africa’s REITs are entering 2026 from a position of stability. Valuations have settled, balance sheets have strengthened, and operational performance has improved.
Industrial vacancies are still below 5%, retail vacancies are coming down, and most listed REITs delivered double-digit total returns in 2025. This positive trajectory is expected to take centre stage at the SA REIT Conference 2026, where both local and international players will be looking closely at new opportunities across the sector.
2. Office Recovery Gains Traction
South Africa’s office sector has slowly but steadily been recovering. The shift away from fully remote working, alongside stronger business confidence, is driving renewed interest in well-located office nodes.
Cape Town continues to outperform, while Johannesburg remains the most pressured, but conversions of older office stock are helping restore market balance. For investors, well-located office spaces are likely to see sustained interest.
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3. Industrial Sector Shows Resilience
Industrial real estate continues to dominate as the country’s strongest commercial asset class. According to Rode’s Q3 2025 survey, national vacancies are sitting at just 3.8%, and rentals for 500m² space grew 8.4% year-on-year.
Demand for logistics, distribution and e-commerce infrastructure remains strong, particularly in Cape Town, where demand significantly exceeds supply. Proximity to major transport routes continues to drive both development and investor appetite.
4. Major Players Investing in the Commercial Sector
With confidence returning, big developers are moving in. Growthpoint’s R20-billion expansion at the V&A Waterfront is a significant indicator of long-term commitment to the commercial sector.
Additional investments at La Lucia Mall (Durban), Longbeach Mall (Cape Town), Beacon Bay Retail Park (East London), and Alberton City (Johannesburg) reinforce this upward trend.
On the township and rural front, Vukile and Exemplar continue to post strong results, with healthy trading densities and declining vacancies.
New entrants such as Walmart’s branded-store rollout in Johannesburg continue to signal renewed belief in South Africa’s long-term commercial potential, strengthened by the country’s exit from the FATF grey list.
5. Technology Transforms Interactions
Technology is rapidly transforming how commercial properties are marketed, viewed and ultimately sold.
Short-form videos, reels and walk-through content are driving significant buyer engagement, often going viral before listings even appear on traditional portals. A new era of ‘property personalities’ is emerging on social media, reshaping how people discover and interact with real estate.
At the same time, AI is driving faster valuations, predictive insights and personalised marketing…all tools that are redefining commercial transactions. As decision-makers become more digitally driven, the shift toward tech-enabled buying and selling is set to increase.
Looking Ahead
The trends shaping 2026 point to a redefined commercial property landscape. Strengthening fundamentals, renewed investor confidence and rapid technological adoption are aligning South Africa more closely with global market shifts.
For stakeholders across the value chain, the year ahead presents an opportunity to move early and unlock long-term value in a sector that is firmly back on the rise.
