Reverse semigration and its impact on Gauteng’s commercial and industrial real estate
In the aftermath of the COVID-19 pandemic, many South Africans were working from home and took advantage of this newfound freedom to relocate to other parts of the country – most commonly Cape Town and the scenic towns of the Western Cape. Fast forward five years, and formalised return-to-office mandates have driven many people back to the economic hubs of Johannesburg and Pretoria. 3Cube Property Solutions shines the spotlight on reverse semigration and its impact on Gauteng’s commercial and industrial real estate.
Back to the office means back to Gauteng
Johannesburg’s role as South Africa’s economic heartland cannot be ignored. It is home not only to the Johannesburg Stock Exchange, but also to the head offices of major banks, legal firms and consultancies. According to BusinessTech, more than 70% of South Africa’s businesses are Johannesburg-based, which makes it the natural home for a majority of workers across all sectors. Daily Investor reports that large-scale employers like Vodacom and Nedbank have formalised their return-to-office mandates, which has necessitated many moves back to Gauteng.
The result is that after several years of elevated vacancies, driven by remote work and corporate downsizing, commercial property in key nodes like Sandton, Rosebank, Midrand and parts of Pretoria is showing robust progress.
Back-to-office mandates aren’t the only factor drawing people to Gauteng. According to a Real Economy Bulletin published in 2024, Gauteng is the country’s largest economy, accounting for 33.1% of South Africa’s GDP that year. A CareerJunction Employment Insights Report echoes this sentiment, stating unequivocally that Gauteng is the province with the highest economic activity – and South Africa’s most attractive salaries. According to this report, Gauteng remains South Africa’s employment hub, with over 52% of all job offers emanating from here.
Semigration impact: Rise in rental demand for residential and commercial properties
The result of Gauteng’s blend of opportunities and back-to-the-office policies is a rise in rental demand for commercial properties, which is concentrated in Johannesburg’s commercial centres, including Sandton, Rosebank and Midrand. There is a concurrent demand for residential properties in sought-after areas like Sandton and Waterfall.
The demand for Johannesburg office space is driven not only by local companies, but also their international counterparts. Thanks to events like the G20 summit, together with agreements like the African Continental Free Trade Area, Johannesburg is in the limelight.
Mixed developments are also gaining traction. By integrating office, retail and residential components, these developments align with evolving tenant preferences for convenience, accessibility and lifestyle integration. Many residents returning to Gauteng want short commutes and easy access to shops, gyms and restaurants, making living and working in a mixed development an alluring opportunity.
Industrial property gains stemming from reverse semigration
As businesses and workforce activity reconsolidate in Gauteng, there’s a natural concurrent demand for logistics, warehousing and light industrial space. This growth is further supported by the expansion of e-commerce and the need for efficient supply chain infrastructure. As far back as 2024, Rand Merchant Bank was projecting a jaw-dropping 150% surge in ecommerce transactions and many businesses are actively investing in their online presence. More online sales translates into greater warehouse demand.
Reverse semigration is reshaping Gauteng’s property market. Professionals and businesses are returning inland, driving demand for premium office and industrial space across Gauteng. If your business needs commercial, industrial or retail space in Gauteng, get in touch with 3Cube Property Solutions.