Feature/OPED
From Rental Shifts to AI Innovations: The Evolving Landscape of South Africa’s Property Sector
By Waldo Marcus
The past year has been challenging for property investors, with a sluggish economy slowing residential rental escalations in most regions in 2024.
Rental escalations are likely to be applied cautiously in 2025 to avoid vacancies, particularly given the potential for a decline in demand for rental properties as tenants, motivated by lower interest rates, migrate to property owners.
Lower rental returns will see investors looking at alternative ways to generate improved income from their investments. Short-term holiday rentals have impacted rental prices in tourist destinations, with higher rental income achieved in peak holiday times, pricing out consumers looking for long-term rental property. This trend, especially in the Western Cape, has some lobbyists calling for stricter regulations to protect consumers from inflated rental prices and a lack of affordable rental supply. SA Tourism has requested better transparency from platform providers. The risk for bond providers is that investors are financing these properties based on current tourism trends and rental income, which relies heavily on the success of platforms like Airbnb.
Consumption changes are driving commercial property growth
The commercial property sector grew in 2024 and this positive trajectory is expected to continue in 2025 as interest rates are lowered. Property developers are focusing on convenient neighbourhood retail and merging with online retailer needs. In urban areas, convenience and easy access are prioritised, while larger developments are succeeding in rural, underserved areas.
Industrial properties, particularly logistics and warehousing in the Western Cape, KwaZulu-Natal and Gauteng, continue to outperform other commercial sectors. Secure and well-serviced industrial parks are in demand and expected to grow. However, traditional industrial areas around Johannesburg and the Pretoria CBD face a value collapse due to security risks and inadequate infrastructure maintenance to service the nodes.
ESG is likely to become a high-value agenda item for commercial property investors in 2025 to ensure compliance and reduce operating costs. The latest SAPOA Operating Cost Report reveals that 29% of operating expenses go to electricity costs and 23% to property taxes.
The risk of leakages
Water shortages are the next big challenge, posing a significant risk to property owners. Government and municipalities must act before it becomes another catastrophic reality like Eskom. Addressing water shortages is a dual challenge requiring both the building of and better maintenance of water infrastructure, including sewage treatment plants, and longer-term, the creation of additional reservoirs to keep up with population growth and mitigate climate change risks.
Leakages extend beyond water. Revenue leakages include missed recoveries, escalations, lease changes, and renewal options, to name a few. Increased regulatory requirements have resulted in more time being spent on compliance, and this is not expected to ease. Regulatory and compliance changes and demands on property-related companies remove valuable focus and resources from internal due diligence and processes to prevent revenue and recovery leakages. We predict more organisations will invest in technology resources to identify revenue leakages and focus on tools to drive operating costs down.
The Revolution of AI in the Property Sector
Technology – particularly AI – has become indispensable to the property sector, from AI-powered marketing and presentation tools to automated management systems. While these advancements streamline operations and enhance decision-making, they also introduce new challenges, particularly in data security and risk management.
As we move into 2025, property companies must carefully consider the appropriate balance between AI and human expertise. By striking this balance and implementing robust data protection measures, organisations can harness the power of AI while preserving their brand authenticity and competitive edge.
The Necessity of diversity in Decision-Making
Property investment is a complex and often high-stakes endeavour. As a fixed asset with emotional and financial implications, property valuations and transactions can be challenging. Recent shifts in market perception have further complicated the landscape, with divergent opinions on property’s potential as a wealth generator or alternately, a financial drain.
To navigate this complex market, accurate and reliable data is essential. Mitigating bias and leveraging diverse perspectives allows investors to make more informed decisions. Access to neutral, data-driven insights from respected sources can help uncover hidden opportunities and avoid costly mistakes.
As the property market evolves, tools and information available to investors must also adapt. Companies of all sizes are increasingly recognizing the importance of accurate, accessible, and representative data. They are investing in reliable external data sources to gain a competitive edge and make more strategic decisions.
The lingering effects of high interest rates
Persistently high interest rates raised the cost of credit and placed additional pressure on already strained consumers and businesses. They also dissuaded residential property acquisitions, leading to fewer home loan applications and a decline in the transfer of both bonded and unbonded properties in 2024. Lightstone data reveals that first-time buyer volumes slumped by 20% in 2023.
While welcome, the first two interest rate cuts will take time to filter through to residential property acquisitions. Encouragingly, demand from first-time home buyers appears to be recovering slowly with ooba Home Loans noting a rise in applications to 49.6% in September 2024, the highest reading since November 2022. We expect residential property sales to accelerate in 2025 as interest rate relief starts to filter through, albeit at a slower pace in dysfunctional municipalities.
Individual investors are increasingly choosing to maintain smaller portfolios and using tax-efficient structures such as companies and trusts. TPN anticipates that this trend will persist into 2025. Demand for buy-to-let properties has risen since late 2021, particularly in the Western Cape, followed by the Eastern Cape and Tshwane. Although this trend is expected to continue, it may slow down around mid-2025 as demand shifts from rental properties to ownership.
Municipal performance linked to property value creation
Service delivery quality, infrastructure and the maintenance of that infrastructure impact the value of property types. Well-run municipalities will continue to attract investment. Since 2020, semigration has highlighted the successes and failures of provinces and cities, resulting in decreased revenue collections for some of South Africa’s largest municipalities.
Safety and security continue to influence where South Africans choose to live and work, impacting both the residential and commercial property landscape. Mixed-use developments, secure estates, sectional title properties, and commercial parks offering efficient ways to provide enhanced security, service delivery, productive infrastructure, and maintenance spending will continue to be in demand.
An important consideration that will become increasingly significant in 2025 is the quality and accessibility of the lifestyle available in certain areas. Well-maintained and safe parks, public spaces, beaches, dams, lakes, and other recreational facilities will make these areas more appealing to tenants, businesses, and investors.
The outlook for property KPIs
Residential vacancies are expected to increase in the latter half of 2025 due to lower interest rates and improved consumer confidence. Office and retail vacancies are likely to remain stable in the first half of 2025 but will decrease should business confidence improve and if GDP targets are met. Industrial property vacancies will remain low as demand remains strong, especially in the Western Cape and infrastructure development nodes in Gauteng and KwaZulu-Natal.
Rental escalations for commercial and residential properties will improve in the first half of 2025. Investors will be keen to enhance their returns after a period of sluggish economic performance with slightly healthier consumers offering the opportunity to grow rental income strategically.
The good standing of both commercial and residential tenants is expected to continue to improve as landlords use stricter vetting and collection strategies.
Rental property gross yields will, on average, stay the same as property values are expected to increase in line with rental income. The challenge for investors will be to keep operating costs down to maintain or improve net yields.
A favourable outlook for residential housing market
The outlook for the residential housing market is more favourable for 2025 than it has been for the past few years with the property market offering good value overall. The interest rate will likely be cut by a further 50bps by the third quarter of 2025, offering further relief for household finances and renewed activity at both the lower and upper ends of the market. More investments could see an increase in rental property supply and even a potential decline in rental demand as more consumers shift from renting to buying. We expect continued demand for well-managed rental properties.
Waldo Marcus is a Director at TPN from MRI Software
Feature/OPED
Building 234 Solutions: A Response to Everyday Workforce Challenges
By Owoloye Emmanuel
Every business starts with a problem. For us, that problem was hiding in plain sight.
Across organisations, we kept seeing HR professionals, payroll teams, and business leaders spend significant time navigating processes that should be simpler. Employee records sat across multiple systems, payroll processes required manual intervention, and routine workforce tasks often became more complicated than they needed to be.
As businesses grow, workforce operations naturally become more complex. Yet many organisations still rely on disconnected tools and workflows that create unnecessary friction for both employers and employees.
The consequence is more than operational inefficiency. HR teams spend valuable time managing systems instead of supporting people. Business leaders struggle to access timely workforce insights, while employees experience delays in processes that should be seamless.
These weren’t isolated challenges. They were recurring realities across workplaces, regardless of industry or size.
That observation led us to a simple question: what if workforce management could be easier?
What if HR, payroll, and workforce operations could work together within a single, connected experience?
That question became the foundation for 234 Solutions.
We are building 234 Solutions with a clear belief that workplace technology should reduce complexity, not add to it. Our goal is to help organisations spend less time navigating processes and more time focusing on productivity, growth, and people.
As we prepare for launch, our focus remains simple: building practical solutions for real workplace challenges and helping organisations create better experiences for the people who power them every day.
Owoloye Emmanuel is the founder of 234 Solutions
Feature/OPED
The Role of TV in Preserving African Stories and Identity
Scroll through social media today, and you will notice something interesting: everyone is either reacting to a series, quoting a movie line, or debating a character as though they personally know them. Beneath the memes and binge-watch culture, however, lies something deeper. Television remains one of the most powerful tools shaping how Africans see themselves, remember their history, and tell their own stories. In a continent as diverse and expressive as Africa, that matters more than ever.
TV as a Cultural Archive, Not Just Entertainment
Long before streaming algorithms began shaping our viewing habits, television was already preserving African identity. From Nollywood dramas that capture the rhythm of everyday Lagos life to documentaries exploring Maasai traditions and Ghanaian folklore, TV has served as a living archive of the continent’s stories.
It preserves more than entertainment; it preserves language, culture, humour, values, and shared experiences. Unlike fleeting social media content, television allows stories to unfold with depth, exploring the realities of family, tradition, ambition, and modern African life without reducing them to stereotypes. That is the power of TV: preserving not just stories, but perspective.
Why Representation on TV Still Matters
There is a subtle but important truth: if people do not see themselves on screen, they may begin to believe their stories are not worth telling. This is why African TV content is more than entertainment; it is affirmation.
Seeing a character who speaks like you, struggles like you, or celebrates like your community does something powerful. It validates identity and challenges outdated narratives that have historically defined Africa through external lenses.
This is where MultiChoice Group, through platforms such as DStv and GOtv, plays an important role. They do not simply broadcast content; they help distribute cultural memory at scale.
GOtv, DStv, and the Everyday African Viewer
Think about a typical evening in many African homes: the TV is on in the background, someone is laughing at a comedy show, another person is watching a local series, and someone else is catching up on the news. That shared viewing experience remains very real.
Through platforms such as DStv and GOtv, African households are exposed to a blend of local storytelling and global content. More importantly, they have helped amplify African-produced content by bringing Nollywood films, African reality shows, talk shows, and documentaries into mainstream rotation.
It is not just about access. It is about visibility.
A young filmmaker in Lagos today is more likely to believe their story matters because they have seen similar stories broadcast widely. A child in Accra grows up hearing familiar accents and seeing environments that look like their own on screen, not as exceptions, but as the norm.
TV Is Also Shaping Modern African Identity
African identity is not static; it is evolving. Television reflects that evolution in real time.
Today, audiences see:
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Young Africans balancing tradition and modern dating culture
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Stories tackling mental health in African households
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Fashion and music influences spreading through TV series
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Political satire shaping public conversation
Conversations that were once confined to homes are now being explored on screen, giving audiences the language to discuss issues that were previously unspoken.
In many ways, television is doing what oral tradition has always done: passing stories, values, humour, warnings, and history from one generation to the next. The difference is that today’s griots are writers, directors, and broadcasters.
The Future: From Watching to Owning Our Narratives
The next stage of African storytelling is not just about being seen; it is about ownership.
As more African creators produce content and platforms continue to invest in regional storytelling, television becomes more than a mirror. It becomes a tool for shaping how Africa is represented to itself and to the world.
While streaming continues to grow, television, particularly accessible platforms such as GOtv, remains one of the most effective ways to reach everyday audiences across different income levels and regions. After all, storytelling only matters if people can access it.
African stories are not new. They have always existed in families, on streets, in markets, in history books, and through oral traditions. What television has done, and continues to do, is give those stories a stage wide enough for millions to experience them at once.
The next time you watch a local series or documentary on DStv or GOtv, remember that you are not just being entertained. You are participating in the preservation of African identity itself.
Feature/OPED
The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation
By Kehinde Ogundare
Ask a tech entrepreneur in San Francisco what AI means for their business, and they are likely to talk about competitive advantage, product differentiation, and scale. Ask a small business owner in Kano or Onitsha the same question, and the conversation shifts entirely.
For many Nigerian SMEs, the priority is keeping the lights on, managing costs, and finding sustainable ways to grow in a challenging economic environment. This difference in perspective explains why the global AI conversation, often shaped by assumptions about stable infrastructure, deep capital, and abundant technical talent, frequently fails to address the realities facing Nigerian SMEs.
This matters because Nigerian SMEs are not a peripheral concern. In 2024 alone, MSMEs contributed 46.32% to Nigeria’s GDP, accounting for 96.9% of businesses and 87.9% of employment. These businesses are the backbone of the Nigerian economy, and if AI is going to mean anything for Nigeria’s development, it has to work for them in the daily conditions they actually operate in.
However, research drawing on empirical data from 144 Nigerian SMEs found that inadequate infrastructure, low digital literacy, skills shortages, and regulatory gaps are collectively preventing them from meaningfully engaging with AI. Awareness of AI is high and growing. What is missing is a clear and honest conversation about what adoption actually requires in this specific context. The barriers are real, but none of them are insurmountable. The question is whether the tools, pricing models, and support structures being offered to Nigerian SMEs are designed with those barriers in mind, or whether they have been built for another market entirely.
Subscription models making AI affordable for small businesses
When most small business owners hear “AI,” they imagine expensive software, specialist consultants, and a hefty upfront bill.
That assumption is not entirely wrong, but it describes a particular way of buying technology, not AI itself. The shift that makes AI genuinely accessible at the SME level is the move away from large, one-time capital purchases towards tools that charge a predictable monthly subscription. Businesses can pay for what they use, scale back when necessary, and avoid the debt that a major technology investment can create.
The deeper opportunity here is consolidation. Many SMEs are already spending money across multiple disconnected tools—one for invoicing, another for customer records, another for stock tracking—none of which talk to each other. An integrated platform that handles several of these functions together, with AI built in, can actually cost less than the sum of those separate subscriptions while giving business owners a clearer picture of their operations.
With margins already under pressure, any technology a business adopts needs to visibly show an increase in productivity or bottom line. Subscription-based, integrated platforms, priced transparently and honestly, are the model that best fits this reality.
Infrastructure challenges demand a mobile-first approach
No conversation about technology in Nigeria is complete without confronting the infrastructure problem, and AI is no exception. Nigeria continues to face major infrastructure barriers, including limited broadband access, unreliable power supply, and high data costs, all of which constrain deeper AI adoption. These are structural features of the operating environment that any sensible technology strategy must account for today.
The electricity situation alone is significant. The World Bank estimates that the lack of stable electricity costs Nigeria’s economy approximately $26.2 billion annually, equivalent to about 2% of GDP, forcing many businesses to run on expensive diesel generators. That cost ripples outward.
In practical terms, AI tools built for Nigeria cannot assume a stable broadband connection or a computer that is always powered on. The tools that will actually get used are the ones that work on a smartphone, consume minimal data, and can function offline when connectivity drops, syncing back up when it returns. The mobile phone is already how many Nigerian SME owners run their businesses. AI that meets them there, rather than demanding infrastructure they do not have, is AI that has a genuine future in this market.
The direction is clear: build capability from within, using tools that make that possible. Recent AI performance research reveals that 64% of African workers are already actively using AI at work, signalling massive grassroots readiness and driving forward-thinking organisations across Nigeria, Kenya, and South Africa to aggressively prioritise internal upskilling frameworks to bridge the talent gap.
As the policy groundwork is being laid, the commercial ecosystem is beginning to respond. What remains is a clear-eyed acceptance that AI tools built for this market need to look different from those built for markets with different realities. Low cost, low bandwidth, and usability for non-technical people are not modest ambitions; they are the actual requirements. Build for those realities, and AI has a real future in Nigeria’s SME economy.
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