South Africa is witnessing notable shifts as the nation gradually moves away from the remote work culture established during the pandemic, signaling positive trends for its economy. This is particularly evident in the commercial property market, where increasing demand for office space indicates a resurgence of traditional work environments.
Surveying the commercial property sector, Growthpoint Properties, one of the nation’s largest property owners, has noted significant changes. Timothy Irvine, the company's Head of Asset Management, remarked on the importance of offices for nurturing company culture, employee training, and facilitating client interactions. “Offices remain fundamental for building company culture, fostering employee training and development, and enabling teams to collaborate and engage with clients,” he told BusinessTech.
The pandemic initially resulted in reduced office attendance and prolonged vacancies, but as restrictions eased, the demand for office space began to rebound. According to Irvine, Growthpoint has observed increased parking requests at office buildings and heightened interest from employers for amenities like coffee shops to attract workers back to the office.
Remarkably, the first quarter of 2025 reported no tenant space reductions for Growthpoint for the first time since the onset of the Covid-19 pandemic. The company has seen vacancy rates drop significantly—especially notable is the Sandton area, Johannesburg’s business hub, where the vacancy rate had plummeted from nearly 29% to below 20% over the past year.
Growthpoint also predicts substantial rental growth over the next two years due to the escaping vacancy rates which remain low across major markets, including Cape Town and Umhlanga Ridge. The Western Cape and KwaZulu-Natal are experiencing particularly rapid recovery, showing vacancies nearing zero.
Irvine’s analysis aligns with findings from the Rode’s Report for the fourth quarter of 2024, which confirmed similar trends across the nation’s office sector. For the first time since before the pandemic, office rentals slightly exceeded those levels, indicating momentum toward normalization. While some negative rental reversion rates still exist, they signal competitiveness as the market adjusts to the new reality.
CareerJunction's Employment Insights Report for the same period revealed another significant trend: the decline of remote work opportunities. Job listings for remote or hybrid positions had dropped from 4.3% to 3.7%, highlighting how nearly 60% of employers are now demanding greater office presence from their employees. Vodacom, one of South Africa’s major telecommunication firms, has followed suit, abandoning its hybrid work policy, which signifies broader corporate trends favoring traditional office environments.
While hybrid work models may continue, Irvine offered insight on the enduring necessity of physical locations. “Hybrid work… is undoubtedly here to stay, but it certainly hasn’t eliminated the need for physical workplaces,” he explained.
On another front, South Africa retains its status as the most valuable brand on the African continent. A recent Brand Finance report shows South Africa's country brand value has grown to $215 billion, marking a 3.3% increase from the previous year. Despite facing challenges, including Nigeria experiencing a sharp 14.9% decrease, South Africa’s continued growth signals its resilience and economic influence across the region.
Algeria and Morocco also recorded significant brand value increases, demonstrating how African nations are enhancing their global presence and influence. With Kenya commanding attention for its impressive growth rate of 20.7%, South Africa's position remains unchallenged, highlighting its cultural and economic prowess on the continent.
The interplay between the commercial property market's recovery and South Africa’s rising nation brand reflects broader themes of resilience, adaptation, and economic vitality. It emphasizes the importance of continued observation of these trends as the nation rebuilds its post-pandemic economic identity.
The trends observed reframe the narrative of South Africa's economy, showing not only recovery but also growth potential as it solidifies its influence on the global stage. Looking forward, analysts will closely monitor the developments within the office space market alongside the evolution of national brand perception as pivotal elements of South Africa’s economic roadmap.