Soaring demand make Cape Town and Durban investable logistics and industrial markets

CAPE Town and Durban have emerged as two of Africa’s most investable logistics and industrial markets due to their resilience, adaptability and strong investor appeal, according to Cushman & Wakefield | BROLL.

- PHILIPPA LARKIN

Cape Town continues to outperform, with rising rents and declining vacancies underpinned by a period of semigration, operational stability and constrained industrial land.

“Demand is being driven by a flight to quality, semigration from other provinces and growing e-commerce,” said Shane Howe, the head of Western Cape Industrial Broking at Cushman & Wakefield | BROLL.

Strong governance and functioning infrastructure position the city as a low-risk node compared to Gauteng.

“The Cape market is supported by limited stock availability and escalating demand, especially for modern industrial parks,’ said Howe. Development hotspots such as Brackengate and Richmond Park are expanding, while gentrification in older nodes like Epping and Parow unlock additional opportunity.

“Against this backdrop, investors and occupiers must thoroughly align business strategy with location and asset selection to ensure long-term sustainability” he said.

In Durban, chronic land shortages and rising operational costs have created a landlord-favoured market.