Two high-profile developments in the South African commercial real estate (CRE) sector are pointing to renewed momentum in the market: the City of Cape Town’s proposed sale of its majority stake in the Cape Town International Convention Centre (CTICC) and Walmart’s decision to launch branded stores in South Africa.

Cape Town Reassesses the CTICC

The CTICC has been one of Cape Town’s strongest-performing assets since its 2003 opening. It has contributed nearly R67 billion to South Africa’s GDP, sustained more than 169,000 jobs and reinforced the city’s status as a global conferencing destination. In the past year alone, it hosted 368 events, attracted 311,000 visitors and secured future bookings worth an estimated R1.5 billion through 2030.

Against this backdrop, Cape Town is considering selling its 72.7% stake – a move that could free up R800 million – R900 million for infrastructure and service delivery. While the centre would continue operating as a conference hub, private ownership could accelerate expansion plans and relieve the city of future funding obligations.

The proposed sale highlights a broader trend: municipalities recognising that private capital can unlock growth more quickly than public budgets alone. By retaining representation on the CTICC board and ownership of the land, the city ensures long-term oversight while positioning the asset for greater economic impact.

Walmart Bets on South Africa

Meanwhile, Walmart has announced that its first branded stores will launch in the country by year-end. Already a presence through its 2011 acquisition of Massmart, Walmart’s expansion under its own name represents a deeper commitment to the market and signals confidence in the country’s long-term prospects.

The move extends beyond retail. Walmart’s scale requires sophisticated supply chains, distribution hubs, and warehousing infrastructure, spurring demand across multiple CRE categories. This builds on the company’s April Growth Summit, where it recruited new African suppliers, further driving opportunities in industrial and logistics property markets.

Walmart’s strategy to source locally also supports small and medium-sized enterprises, aligning with government’s push for inclusive growth. For CRE, this translates into rising demand for warehousing clusters, last-mile distribution facilities and retail-anchored mixed-use precincts.

These exciting developments show that while the market is dynamic, it’s also demonstrating resilience over time. Whether its global retailers entering the market, municipalities rethinking ownership models or the positive effects of monetary policy, the sector is evolving.

For more information, contact: capitalmarkets@galetti.co.za