South Africa Q4 reports 2020
The impact of Covid-19, coupled with economic pressures, continues to create challenges for most corporate real estate sectors in South Africa.
The impact of Covid-19, coupled with economic pressures, continues to create challenges for most corporate real estate sectors in South Africa, according to JLL’s latest market overview report.
Economic activity in South Africa came to a near standstill mid-way through 2020, as the Government's lockdown response to curb the spread of Covid-19 forced many businesses to close. However, a gradual easing of trade restrictions resulted in a resilient rebound in the manufacturing and mining sectors, slowing the country’s contraction somewhat. While most sectors showed recovery towards the end of H2 2020, growth levels remained significantly lower than those achieved in 2019. South Africa’s real GDP is estimated to have contracted by 7.3% during 2020.
For sustainable economic recovery to occur in 2021, the government has committed to implementing socio-economic reform to effectively re-stabilise the economy. More than R1.3 billion has been allocated to supporting small and medium-sized businesses, while corporate tax relief exceeding R70 billion has eased some pressure off the private sector. Development activity in 2021 is expected to pick up momentum, with approximately R340 billion in pipeline infrastructure projects secured. South Africa is subsequently anticipated to experience year-on-year real economic growth of circa 2.9% in 2021. Critically, this recovery will pivot off the successful roll-out of the Covid-19 vaccine, with 21 million doses already secured between Johnson & Johnson and COVAX.
The report looks at South Africa’s main office, industrial and hotel property markets, across key cities.
For more information, please find the full report attached.