Daily Archives: October 29, 2025

South Africans see more money in their pockets

The PayInc Net Salary Index, which tracks the average nominal net salaries of around 2.1 million South African earners, rose for the sixth consecutive month in September 2025.

This steady growth reflects both the gradual improvement in economic activity and the resilience of the labour market in recent months.

Positive forces in the economy include low inflation, recent interest rate cuts, real increase in salaries for the second consecutive year, and lower fuel costs. These are in addition to the diversified trade composition, higher commodity prices, a stable and stronger rand exchange rate.

The PayInc Net Salary Index reached R21,428, which was 0.3% up on August’s level and 2.3% higher than a year ago.

The index shows that average net salaries strengthened by 4.3% in the first nine months of 2025 compared to the same period in 2024.

Following the South African Reserve Bank’s acquisition of BankservAfrica, the payment clearing house system operator changed its name to PayInc.

PayInc analysis also indicates that just over 175 000 additional salaries were paid during the first nine months of the year.

Elize Kruger, independent economist, said: “While a welcome development, the official unemployment rate remains stuck at around 33%, as the economy, at current sluggish growth rates, is simply unable to create enough new opportunities to absorb all new entrants into the job market on an annual basis.”

Nevertheless, the PayInc Net Salary Index points to an improved labour market in Q3 2025, with average net salaries rising 0.4% quarter on quarter and approximately 48,000 more salaries paid during the period.

“The refreshed PayInc Net Salary Index confirms the narrative that 2025 will on average be a good salary year, despite uncertainties and challenges impacting the economic outlook.”

In real terms, the PayInc Net Salary Index increased by 0.2% month-on-month to R20,806 in September 2025, up slightly from R20,767 in August.

While this marks the third consecutive month that real net salaries remain below year-ago levels, the relatively low average consumer inflation of 3.1% in the first nine months of 2025 means that real net salaries are still up 1.2% compared to the same period in 2024.

“With average consumer inflation forecast at 3.3% in 2025 – lower than the 4.4% in 2024 – and industry data suggesting an average salary increase above 5%, 2025 will likely be the second consecutive year of a real increase in earnings,” said Kruger.

The South African Reserve Bank (SARB) has expressed its preference to see consumer inflation anchored at the lower end of the 3–6% target band, sparking debate over the feasibility of a proposed 3% target and the steps required to achieve it.

“One aspect that could potentially be a near-term hurdle is the fact that trade unions and the business sector are still believing that inflation would average around 4.3% in the next five years, as reflected in the Bureau of Economic Research’s Q3 inflation expectations survey,” said Kruger.

Many recent wage agreements have been extended to three- or five-year terms, often resulting in pay levels higher than today’s low inflation environment.

“While adjusting to a lower inflation environment will be challenging and take time, recent data show early signs of moderating inflation expectations and salary adjustments becoming more aligned with this trend,” Kruger said.

The economist said that for 2025, industry indications suggest an average salary increase of around 5.3%, compared to a forecast inflation rate of 3.3%. “While this could boost spending, it will only be sustainable if productivity growth keeps pace,” said Kruger.

New R700 million development in Joburg taps into booming industrial sector

Growthpoint Properties has launched Noka Park, a R700 million logistics and industrial development in Gauteng’s Riverfields logistics precinct in partnership with Feenstra Group.

The park is 50/50 co-owned and co-developed by Growthpoint and Feenstra Group and will be managed by Growthpoint.

With global e-commerce giants and tech-driven retailers expanding into South Africa for example, demand for modern, flexible logistics hubs has surged, creating new opportunities for high-performance warehousing.

Construction begins in October 2025, with four buildings to be delivered in phases. The first warehouse is set for occupation from the final quarter of 2026, with the remainder rolled out on completion.

Noka Park tenants will benefit from direct access to transport and distribution corridors; scalable, future-proofed facilities; a professionally managed precinct.

“The South African logistics market is currently being reshaped by a ‘flight to quality’ with tenants prioritising high-grade, sustainable and technologically enabled warehouses over more basic facilities,” said Errol Taylor, head of Asset Management: Logistics & Industrial at Growthpoint Properties.

The listed REIT said that Industrial occupiers are increasingly prioritising technology adoption, integrating IoT, AI and automation to streamline warehouse operations and enhance supply chain efficiency.

Sustainability and ESG alignment have have also become a key element, with tenants seeking energy-efficient buildings that are solar-ready, water-wise and aligned with green certification standards.

Even with the recent suspension of load-shedding, energy security remains critical driving demand for logistics parks with reliable power infrastructure and backup systems, Growthpoint added.

Flexibility is equally essential, as the market shows growing interest in mid-sized warehouses ranging from 10,000m² to 30,000m². This makes scalable, adaptable land parcels, like those offered within Noka Park, a significant competitive advantage.

Growthpoint pointed out that logistics and industrial assets have grown from 15% to 20% of its total South African portfolio value, with nearly half of these assets now concentrated in modern logistics warehouses located in high-performing nodes.

This portfolio transformation reflects a deliberate strategy to focus on quality, performance and sustainability, Taylor said, and this is set to continue with a pipeline of demand-driven speculative developments like Noka Park.

It is designed for a diverse tenant base ranging from e-commerce companies to international logistics operators and warehousing.

Situated at the corner of Mulder Road and Blaauwklippen Avenue in Kempton Park, the development offers easy access to the R21 freeway and lies only 3km from OR Tambo International Airport.

Noka Park spans 105,000sqm and will deliver over 52,000sqm of high-performance industrial space across four state-of-the-art warehouses designed to accommodate high-volume warehousing, racking, and fast-moving logistics operations.

Warehouse footprints range from mid-sized to large-scale facilities, offering flexibility to both blue-chip tenants and growing industrial operators.

Each warehouse is equipped with FM2-specification floors, 12m clear spring height and both dock and on-grade access to support efficient movement of goods, enhanced by built-in offices, with staff areas and ablutions.

Solar-ready roofing, LED lighting and generator-ready infrastructure reflect a focus on operational resilience and energy efficiency. Additional features such as low-e performance glazing further enhance sustainability and thermal performance.

Safety and security are reinforced through fire protection systems, a secure gatehouse with access control, a 2.4m perimeter wall and electric fencing.

How AI is transforming corporate real estate

In just three years, the number of companies running Corporate Real Estate (CRE) AI pilots has jumped from 5% to 92%, yet most organisations remain in the early experimentation phase, learning what works before scaling, says JLL, TEH global commercial real estate and investment management company.

Facing budget pressures, CRE teams are focusing on high-impact areas -portfolio optimisation, energy management, and data workflows – that align with C-suite business priorities, rather than chasing quick wins, said Yuehan Wang, global research director, Real Estate Technology at JLL.

Companies lagging in technology adoption risk falling further behind. Despite high enthusiasm, many lack systematic AI strategies, widening the gap between organisations with mature tech programmes and those still catching up, noted Wang.

Throughout 2025, CRE professionals face a swirl of AI speculation – from bold transformation predictions to warnings of overhype. Amid the noise, decision-makers need clarity on adoption pace, ROI, and which initiatives deliver real value, emphasises Wang.

Insights from JLL’s 2025 Global Real Estate Technology Survey (1,000+ senior CRE decision-makers across 16 markets) reveal where AI is making a difference, what separates successful pilots from expensive experiments, and how leading organisations are preparing for waves of change yet to come, according to Wang.

This isn’t just a technology story – it’s about strategic choices, organisational capabilities, and systematic approaches that separate the 5% achieving tangible results from the 95% still searching for breakthroughs, writes Wang.

Unprecedented Speed, Low Maturity

While traditional CRE technologies such as environmental sensors, data modelling, and predictive maintenance have gradually matured – now adopted by over 80% of large occupiers – AI adoption has surged at unprecedented speed, noted Wang.

Two years ago, fewer than 5% of occupiers planned to embed AI in CRE operations. Today, 92% of CRE teams are piloting AI or planning to do so this year. This rapid pivot has reshaped budgets, with top spending priorities now centred on AI initiatives, cybersecurity, and digital infrastructure upgrades, said JLL.

However, strategy often lags behind investment. Most organisations implement AI due to C-suite mandates rather than proactive conviction, leaving 92% piloting AI but only 5% achieving most programme goals, Wang added.

The real challenge, and the reason why maturity remains low, lies in the readiness of an organization including whether they have quality data, infrastructure and the change‑management processes needed to integrate AI into core workflows.

The most successful investors take a systematic approach to AI by developing tailored technology roadmaps, investing in quality data and infrastructure and embedding AI into core workflow, all widening the gap between leaders and laggards.

The opportunity to secure competitive advantage through AI is not indefinite. The CRE landscape will look different within the next three years and certainly by 2030, stated JLL.

Wang’s research identified 27 AI use cases across the CRE value chain. While conventional wisdom suggests starting with “low-hanging fruit” such as lease abstraction, CRE teams are instead targeting high-impact areas aligned with strategic priorities:

  1. Real Estate Data Workflows
    CRE teams deal with fragmented data—from energy consumption to space utilisation and employee satisfaction. AI helps standardise, integrate, and automate reporting, creating the foundation for all future applications, explains Wang.
  2. Portfolio Optimisation
    Agile, liquid portfolios are critical to cost control. AI supports continuous space planning, location strategy, and capital planning, notes Wang.
  3. Energy Management
    Sustainability and decarbonisation drive AI adoption, delivering measurable ROI. AI applications include energy tracking, automated HVAC control, and decarbonisation planning, Wang adds.

AI adoption was expected to level the playing field, but it is doing the opposite. Organisations with mature tech programmes pull further ahead, while laggards face structural barriers, said Wang.

In contrast, mature organisations achieve more with AI due to robust data infrastructure, change management processes, and experienced teams, Wang observed.

Leading organisations take a systematic approach, defining roadmaps, success metrics, and stakeholder engagement plans. They combine internal training, custom development, hiring, and external partnerships to maximise ROI, Wang pointed out.

AI pilots are more than experiments—they are critical learning opportunities to inform long-term CRE strategy. Waiting for technologies to mature risks falling behind, the analyst warned.

The real “second mover advantage” isn’t avoiding early mistakes – it’s using time strategically: test selected AI use cases, nurture team capabilities, and build adaptive capacity.

Organisations that do this will not only drive efficiency and growth but also develop the organisational DNA to continuously evolve with AI, concluded Wang.