South Africa’s commercial property sector has seen significant growth since 2023, a trend which is set to continue well into 2025. According to data provided by Gmaven, a well-known real estate software and data service provider, South Africa is on the brink of a commercial property boom with the market set to surge to nearly R2 trillion. This number is supported by a record-breaking year for Aucor Property, with sales closing at R2.5 billion.
While commercial property is often associated with office, clear industry favourites include retail and industrial property. These two property types remain at the heart of the boom, driven by the expansion of e-commerce and the need for efficient supply chains, especially in the Western Cape.
The current data signals a major shift in how commercial property is being bought and sold in South Africa—and auctioneers are in a prime position to benefit. Rising volumes mean more business opportunities, and with investors seeking speed and transparency in a competitive market, auctions offer potential buyers the perfect opportunity.
What’s Driving the Boom in Commercial Property?
South Africa’s commercial real estate market has shown resilience amid economic challenges. This notable upswing is driven by a combination of investor confidence, sector-specific demand, and strategic urban development.
Renewed investor confidence and a notable shift in workplace trends are fuelling a resurgence in commercial property investment. As more employees return to the office—either full-time or through hybrid models—businesses are seeking high-quality, well-located office spaces that meet modern operational standards. High-performing regions, such as Cape Town and parts of Gauteng, are particularly attractive, with well-governed municipalities and infrastructure upgrades adding to their investment appeal. The Western Cape, in particular, has seen a notable increase in demand for commercial property due to its strategic location and growing tech industry.
South Africa’s robust industrial and logistics sector is another key driver of commercial property growth. This demand is largely fuelled by the rapid rise of e-commerce, evolving supply chain needs, and the push for modern, well-located facilities.
Together, these factors are not only sustaining the current boom but also creating fresh opportunities for auctioneers to tap into a growing and competitive commercial property market.
How Auctioneers Can Capitalise on the Trend
1. Focus on Pre-Auction Buyer Education and Due Diligence Support
Providing potential buyers with more information reduces uncertainty and increases understanding. Auctioneers can add value by providing buyers with detailed investment packs with zoning certificates, income statements, lease agreements, and municipal compliance info. Hosting pre-auction webinars or site tours with Q&A sessions for serious investors are another great way to help reduce uncertainty.
The more informed the buyer, the more confident they’ll be to bid aggressively when the time comes.
2. Tailor Auction Formats to Match Market Needs
One of the key advantages of auctions is their accessibility. With Cape Town increasingly becoming a hotspot for investors, many foreign buyers are eager to participate. Whether from Johannesburg or overseas, potential bidders are looking for convenience. Online auctions remove location barriers, dramatically expanding the pool of potential buyers and making it easier for international and out-of-town investors to engage. As such, auctioneers need to leverage the convenience of online auctions, catering to a range of buyers that are seeking to invest.
3. Ramp Up Marketing with Digital Precision
Ramp up your auction results by embracing data-driven digital marketing strategies designed to attract serious commercial property investors. At Auction Calendar, we offer centralised exposure for auction listings with a dedicated platform where investors actively explore upcoming auctions. Because our audience is already seeking auctions, your auctions will be placed in front of a high-intent audience already interested in commercial real estate.
Regular mailers to a curated database of investors, real estate professionals, and qualified buyers ensure your property auction reaches the right audience. Social media posts and inclusion in our members-only Real Estate Facebook Group ensures all the marketing pressure is taken off your plate.
Now’s The Moment
As South Africa’s commercial property boom continues - investor confidence is rising, interest rates are expected to drop, and auctions are increasingly seen as efficient, transparent methods for high-value transactions.
With growing demand for industrial and mixed-use properties, and a surge in both local and foreign investor interest, auctioneers have a unique window to establish themselves as key players in the commercial sector. Leveraging digital tools, professional marketing, and platforms like Auction Calendar can accelerate visibility and credibility in this evolving landscape.
Ready to take advantage?
Start marketing your auctions with Auction Calendar.
