The Gauteng property market is showing remarkable resilience, and industrial properties are leading the way. With rising rental growth and low vacancy rates, Gauteng’s industrial sector is an excellent opportunity for investors in 2024. Let’s explore why industrial properties in Central Witwatersrand, East Rand, and other key areas are outperforming expectations.
1. Impressive Rental Growth
Rental rates for industrial properties in Gauteng have been climbing steadily:
- 500 m² units experienced a 10.9% increase in Central Witwatersrand and 7.6% in East Rand year-on-year.
- Larger industrial spaces are also seeing similar upward trends, making the sector a promising investment.
This growth is driven by the expansion of logistics and e-commerce industries, which rely on Gauteng’s central location for efficient distribution.
2. Low Vacancy Rates Indicate Strong Demand
Vacancy rates for industrial properties in Gauteng are among the lowest in the country:
- The national average for industrial property vacancies is 3.6%, much lower than other property types.
With such low vacancy levels, industrial properties promise consistent returns, making them a reliable option for investors.
3. Strategic Advantages of Gauteng’s Industrial Nodes
Gauteng’s industrial hubs offer distinct locational advantages:
- Central Witwatersrand: A logistics powerhouse connected to Johannesburg’s urban core.
- East Rand: Close to OR Tambo International Airport, making it a prime area for warehousing and distribution.
These areas are well-connected via highways and offer easy access to suppliers and customers, further boosting their appeal to businesses.
4. Why Industrial Properties Are Outperforming Other Sectors
Compared to office and residential markets, industrial properties in Gauteng are thriving:
- Limited new developments have maintained a balanced supply-demand dynamic.
- E-commerce growth and the need for optimized supply chains have increased the demand for industrial spaces.
These factors ensure strong rental growth and sustained interest from tenants and investors.
Gauteng’s industrial property market is a standout performer in 2024, offering lucrative opportunities for investors. With increasing rental rates, low vacancies, and excellent connectivity, the region is perfect for businesses and investors seeking stable returns. Whether you’re looking to invest, lease, or learn more about the market, Gauteng’s industrial sector holds promise.
Looking to invest or lease industrial property? Let’s connect! As a specialist in the property market, I can help you find the ideal property to meet your needs. Contact me today to get started.
Source:
The data and insights provided in this article are sourced from the RODE Report 2024:3, which offers in-depth analysis and trends in the South African property market.