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Major Upgrades Planned for Germiston

Germiston is a distinguished industrial node in the heart of the Ekurhuleni Metropolitan Municipality, situated in the East Rand region of Gauteng. Its strategic position near key suburbs and arterial routes has opened up new opportunities for growth, development and ultimately, transformation.

In the upcoming years, there are major public and private sector plans to revitalise Germiston and renew the city centre. This will further position it as a key industrial node in SA.

Home to approximately 250 000 people and spanning 143 square kilometres, the city is pegged as one of the most important cities in the region, and its development is now a priority for the provincial government, which has identified it as an Urban Development Zone, along with Kempton Park and Boksburg. These three cities contribute to approximately 95% of Ekurhuleni's revenue, with most of this concentrated around industrial activity.

Germiston Urban Renewal

The core of the Germiston Urban Renewal plan is the Aerotropolis programme, which follows the blueprint of the "airport city" as seen in Asia, Europe and North America. The programme capitalises on the appeal of the O.R Tambo International Airport (in Kempton Park) by creating a metropolitan subregion centred around the airport. The Aerotropolis will place Germiston as the Administrative headquarters in the region, while also stimulating economic activity and job creation through massive infrastructural and industrial developments.

The next component of the Urban Renewal plan is to trigger economic growth and a more integrated and equal society by drawing people back into the city centre through the construction of social housing. These RDP-type homes are nearing completion and will provide quality housing for working-class families.

Another component is to develop high-intensity mixed-use developments that promote the concept of "live, work and play" by encompassing a range of components under one precinct. These components can include shops, offices, light industries, residential properties, medical and educational facilities, restaurants and recreational venues, gyms as well as places of worship.

Mixed-use developments will undoubtedly place Germiston in a new league of urbanisation where various property types will exist under one self-contained precinct.

The Role of Private Ownership

A key purpose of the renewal plan is to spark private sector investment, especially since the majority of properties in the city centre are privately owned. A good incentive that has already generated a positive response is that Germiston has been approved by the National Treasury as a priority development zone, and this means that private investors will benefit from tax breaks.

Part of this response has seen the private sector contributing by buying land for development purposes. Furthermore, six public-private partnerships have been registered and approved by the National Treasury, and this shows the incredible potential for the government and business sectors to reimagine and redevelop Germiston's property market.

Germiston Industrial Market

For many years, Germiston has played an important role in SA's industrial sector, and it has provided premium infrastructure and properties for businesses to succeed and grow. Its near-ideal positioning close to major national roads such as the N12, N17 and N3, makes it a convenient city for manufacturing and logistics companies who rely on these key freeways to transport goods and services around the country. It is also situated just under 30-minutes away from the airport, allowing these businesses to easily travel to cargo terminals where goods are then transported both nationally and internationally.

The industrial market will significantly benefit from the Urban Renewal plan and the Aerotropolis programme as the push for heightened investment will expand the market and bring new property offerings to the fore. New businesses will relocate or expand into Germiston and we can expect to see the city diversify through mixed-use developments where industrial properties will exist alongside various other property types.


11 Dec 2018
Author 3CUBE Property Solutions
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