Warehousing has quietly become one of South Africa’s most sought-after property classes. Prime vacancies sit in the low single digits and headline rentals have risen by more than 30% since 2020. Behind the figures lie three powerful forces: the e-commerce upswing, a fast-growing cold-chain sector and a multi-billion-rand infrastructure push.
Market snapshot
- South African warehousing generated US $14.4 billion in revenue during 2024 and is forecast to top US $22 billion by 2030 at a 7.3 % CAGR.
- Online retail sales are projected to climb from US $35 billion in 2024 to almost US $75 billion by 2033 — more than doubling the volume of parcels in less than a decade.
- Cold-chain logistics is rocketing ahead at 18% CAGR, with revenue expected to reach US $20.6 billion by 2030.
Growth drivers
- E-commerce everywhere – Same-day grocery apps (Checkers Sixty60, Woolies Dash, PnP ASAP) and Amazon’s entry keep inventory closer to consumers, spurring demand for urban mini-warehouses and micro-fulfilment hubs.
- Cold-chain on the rise – Vaccine distribution, fresh-produce exports and chilled meal kits mean temperature-controlled space commands premium rents.
- Public-sector spend – The 2025 National Budget allocates R402 billion to transport and logistics projects, including R93 billion for national roads and R66 billion for PRASA’s rolling-stock renewal — all of which shorten lead times to the warehouse gate.
Risks to watch
- Eskom load-shedding — factor in solar-plus-battery or diesel back-up.
- Construction-cost inflation — lock in contractors early.
- Skills shortages — build long-term relationships with training providers and technical colleges.
Key take-aways
South Africa’s warehousing market is expanding faster than GDP. Supply remains tight, financing appetite is strong, and occupiers want energy-resilient, tech-ready buildings. For developers, the window to secure well-located land is narrowing; for occupiers, long leases signed today may prove a bargain by the end of the decade.
