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 reported more modest growth, with domestic and commercial construction costs rising 4.3% and 4.2%, respectively. However, approved building plan rates for commercial spaces averaged R8,400/m², significantly below Industry Insight’s estimate of R16,000/m². The market reflects robust retail demand, industrial resilience, and challenges in the office space sector.
Output Building Cost Indices 2024 Q3: Click here for the latest update, now available to subscribers
