Looking at the skyline of any major South African city, you will see far fewer cranes than during the construction surge that occurred in the past decade, when the prospects of hosting the FIFA World Cup led to a huge building drive incorporating everything from stadia and hotels to large-scale transport infrastructure projects. More so than any other segment of the economy, the construction industry has felt the impact of the post-World Cup slowdown. The easy days of high margins and abundant contracts…
Construction & Real Estate
From The Report: South Africa 2013
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South Africa’s construction industry has felt the impact of the post-World Cup slowdown more than any other sector of the economy. However, ongoing urbanisation trends suggest the sector may pick up in the near future, especially with regards to the social housing segment. South African construction companies have also experienced significant success in their efforts to expand into neighbouring countries. Compared to international markets, local real estate has performed relatively well. Returns, both in terms of capital and income, have on the whole stalled and flattened rather than slipped fully into negative growth. Certain elements of the sector, depending on location and class, continue to present attractive opportunities, especially commercial office property. While there is little sign of a rapid turnaround, there are some positive longer-term indicators, including potential income growth.
This chapter contains interviews with Roger Jardine, CEO, Aveng Group; and Marc Wainer, CEO, Redefine Properties