SA’s commercial real estate sector is showing signs of renewed momentum, driven by two major developments: the City of Cape Town’s proposed sale of its controlling stake in the Cape Town International Convention Centre (CTICC); and Walmart’s decision to launch branded stores in the country for the first time.
According to John Jack, the CEO of Galetti Corporate Real Estate, the developments show commercial real estate is far from stagnant. Whether its global retailers entering the market, municipalities rethinking ownership models, or the positive effects of monetary policy, the sector is evolving.
“We’re seeing positive movement in SA’s commercial real estate as functional municipalities unlock value from city assets while major global players make long-term retail commitments,” Jack said.
The City of Cape Town is considering selling its 72.7% stake in the CTICC, one of the city’s most successful assets since its opening in 2003. The sale would free up R800m-R900m in capital that the city could redirect towards infrastructure and service delivery, Jack noted.
In addition, the city is taking a measured approach focused on serving its constituents over the long term. Private ownership could accelerate expansion plans for the CTICC while reducing the city’s future funding obligations, he said.
“The potential sale of the CTICC, regardless of who owns it, will inject momentum into the entire precinct — boosting demand for nearby hotels, restaurants and mixed-use developments,” he said. “Local government is realising that private capital can fast-track infrastructure development, allowing assets like the CTICC to grow and modernise while the city focuses on service delivery and fiscal stability,” he said.
The convention centre has contributed about R67bn to SA’s GDP, sustained more than 169,000 jobs and reinforced Cape Town’s position as a global conferencing destination. In the 2023 financial year alone, the CTICC hosted 368 events, drew over 311,000 visitors and secured bookings worth R1.5bn through to 2030.
Meanwhile, Walmart, the world’s largest retailer, has announced plans to open stores under its own brand in SA before the end of 2025. The decision to establish stand-alone Walmart-branded outlets is seen as a significant long-term investment in the SA retail market.
On the retail property side, Jack noted that Walmart’s decision to expand under its own brand reflects a long-term bet on SA and underscores the confidence that global investors have in the country’s growth prospects.
“Large-scale retail operations like this require sophisticated real estate infrastructure and their development benefits a wide range of property sectors, from warehouses and logistics nodes to mixed-use precincts and urban centres,” he said.
Jack said Walmart’s commitment to sourcing locally is good news for SA suppliers and SMEs, indicating further growth opportunities in the industrial and distribution property markets.
“Walmart’s scale requires reliable distribution networks,” he said. “This accelerates the need for warehousing clusters along key transport corridors, as well as cross-docking facilities, and last-mile distribution hubs in peri-urban areas.”
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