The 2025 State of the Nation Address (SONA), delivered by President Cyril Ramaphosa, presented ambitious infrastructure, housing, and local government reform plans, yet past failures raise doubts about their execution. While R940 billion has been pledged for infrastructure investment over the next three years (to be confirmed in the 2025 Budget), historical trends show that…
Construction material price inflation gained momentum towards the end of 2024, reaching an annual increase of 4.2 percent in December 2024, against an average consumer inflation increase of 3 percent. On average construction materials rose 6.1 percent in 2024, maintaining its above inflationary increase for the 2nd consecutive year. Several materials showed higher than average…
The Expropriation Bill of 2025 has sparked significant concern over its potential impact on property rights, investor confidence, and economic stability. While it aims to address historical land injustices and promote development, critics worry about the inclusion of “nil compensation” in specific cases and the broad interpretation of “public interest,” which could lead to misuse….
Contradictory to GFCF estimates for construction released by the Stats SA, the Q3 Quarterly Financial Statistical release, showed the strongest increase in construction turnover in 7 years (June 2016), up 10.8 percent y-y, excluding the post Covid period (2021). Turnover by medium size contractors, continued its robust growth trajectory for the 4th consecutive quarter with…
The Provincial Construction Pipeline Model (PCPM) reveals a mixed outlook for South Africa’s construction industry as of September 2024. While the overall pipeline contracted by -12.2% year-on-year, certain provinces like the North West (+20.5%) and Northern Cape (+17.9%) showed significant growth. Public sector building activity remained robust, with a 30% increase in awarded projects, though…
The Company Results Monitor Service (CRMS) index is a composite index of listed JSE companies performance in terms of market capitalisation values, active in the South African Construction Sector. The Composite CRMS Index ended flat in November 2024, following a near 4 percent drop in October, despite a gains reported in the Retailers and Suppliers’…
South Africa’s public sector tender values continued to plummet in October 2024, dropping 73% year-on-year, reflecting persistent declines since the May 2024 elections. Year-to-date building tender values fell 29% year-on-year to R13.8 billion, a stark contrast to the 23% growth seen in 2023. Despite this national downturn, provinces like Gauteng, North West, and Western Cape…
The South African construction industry saw mixed trends in Q3 2024. Commercial building costs rose by 12.1%, driven by a 43% surge in retail space costs to R16,407/m², while office space costs dropped 8.8% to R18,000/m². Industrial space costs grew 10% to R13,292/m², and residential costs moderated to a 5.7% increase, averaging R11,380/m². Stats SA…
South Africa’s estimated civil tender values have shown a mixed trajectory in 2024. While provinces like Gauteng and Limpopo have experienced significant growth, the national trend reflects a decline compared to 2023. In October, Gauteng’s estimated tender values surged to R1.3 billion, marking a 59% year-over-year increase, while Limpopo increased by 86%, exceeding R1 billion….
South Africa’s cement market is facing intense competition from rising imports, with imported cement volumes increasing by 20% year-over-year up to August 2024. Imports, mainly from Vietnam, Mozambique, and Namibia, continue to challenge local production, which saw only a modest 0.4% year-over-year recovery in August after three months of contraction. As of September 2024, imports…
