Category Archives: Proptech

MRI Software, a provider of real estate software and services, says it has created more than 250 new jobs over the last four years in South Africa.

The company recently revealed its new state-of-the-art office in Cape Town, which employs around 270 staff members, including its regional leadership team. An additional 80 staff members work in the Johannesburg office.

MRI attributes its expansion to accelerated demand for property technology (PropTech) in the region.

“The business has experienced rapid growth over the last five years, and with significant future growth predicted for PropTech in South Africa, we don’t expect the trajectory to slow down,” said Mark Fairweather, MD of MRI Software Africa.

“We’ve seen increased investment in PropTech as landlords, property developers and service providers look to enhance operational performance, reduce environmental impacts, and streamline processes through digitalisation, monitoring tools, and improved user experience,” he said.

Despite the constrained growth of the current property market, MRI said it has also seen an uptick in demand for advanced facilities management technologies, AI-powered property management tools, and continued growth in the affordable and social housing sector and student accommodation.

The newly created jobs span a range of functions, from software engineering to managed services roles. The company has created a Centre of Excellence in South Africa, servicing both local and global clients.

Fairweather said that as MRI continues to scale its South African operations, local employees have attractive career growth and development opportunities.

“We have been very impressed with the calibre of talent we’ve hired in South Africa,” said Fairweather. “Currently, around 70% of our local workforce has been tasked with servicing our global client base, particularly clients in the UK given the aligned time zones.”

“South Africa is an attractive investment destination for MRI,” reveals Fairweather. “The recent credit rating upgrade from Moody’s is an encouraging signal that the country is on the right trajectory when it comes to economic stability. Our significant presence in Cape Town acts as a good incentive for sought-after talent who often prefer to be based here.”

Coastal property remains in high demand for holiday homes and Airbnb investments, according to the Seeff Property Group.

Recent Lightstone data has also confirmed that coastal towns have mostly outpaced the metros in terms of transactions over the last year. Buyers have also spent on average about 25% more on coastal property compared to the metros.

Samuel Seeff, chairman of the Seeff Property Group said that with over 48 Blue Flag beaches and marinas, a great climate, and access to good amenities, holiday towns tend to attract buyers from all over these days.

International buyers also find excellent value in prices compared to overseas holiday destinations.

Locations such as Plettenberg Bay where Seeff concluded another record sale of R78 million this year, along with Hermanus, Gansbaai, Langebaan, and St Helena in the Cape have been some of the best performers, along with Eastern Cape hotspots, and Margate, Salt Rock, and Umhlanga in KZN.

Seeff said the migration of wealth to the coastal areas is part of a broader trend. New World Wealth data shows that hot spots which attract wealthier buyers include Clifton, Camps Bay, False Bay, Hermanus, Langebaan, Garden Route towns like Plettenberg Bay, and Umhlanga and Ballito on the KZN coast.

Clifton and Camps Bay (Atlantic Seaboard)

These have seen some of the highest prices paid this year, mostly over R20 million per transaction, says Ross Levin, licensee for Seeff Atlantic Seaboard.

The location, lifestyle and Blue Flag beaches attract buyers from across the globe. Prices are at a premium though. Expect to pay upwards of R10 million, with houses upwards of R20 million.

Hout Bay and Llandudno (Scenic Victoria Road Route)

Located on one of the most scenic routes in the world popular with cyclists, Llandudno has seen a notable rise in sales over R20 million over the last few years.

Hout Bay buyers are increasingly paying more for homes leading to capital value increases and a hot rental market, says Stephan Cross, manager for Seeff Hout Bay.

Muizenberg and Fish Hoek (False Bay)

These are surfing hotspots on the warmer False Bay coast, yet still offer excellent value apartments under R2 million, says James Lewis, Seeff False Bay licensee.

Great amenities, schools and a beach lifestyle make these top choices for holiday makers and property buyers, local and international buyers alike.

Strand and Gordons Bay (scenic R44 Coastal Route)

Scenic waterfront areas combine with good value, especially in Strand, says Alten Vermaak, licensee for Seeff, and you can still buy below R1.5 million in Strand with beach apartments in the R1.5m-R3.5m range.

Gordon’s Bay is superb for luxury buyers, but offers plenty in the R2m-R3m range. Both are popular for holiday homes.

Kleinmond and Betty’s Bay (Overstrand Coast)

Only about 90-minutes from Cape Town and close to Hermanus, the towns offer great value for money, according to Jacques Retief, licensee for Seeff Overstrand.

A laid-back lifestyle and pristine coastline and prices from just R1.8 million make the area a popular choice for holiday homes.

Hermanus and Gansbaai (Whale Coast)

Some of the best whale watching and wine farms on the doorstep are just some of the attractions for weekenders and holiday makers, says Paul Kruger, licensee for Hermanus. Prices start R1.8 million.

There’s also lots to buy in Pearly Beach, about 21kms from Gansbaai, according to Nelia Muller from Seeff.

Langebaan and St Helena Bay (West Coast)

Stunning beaches, fishing and seafood are hallmarks of the West Coast. The area is close to Cape Town for a quick getaway. Mykonos apartments, priced from R1.2 million, are a popular choice for holiday buyers in Langebaan.

Karin Holloway from Seeff St Helena Bay says you can still buy land from R500,000 and build your own holiday house.

Struisbaai and Arniston (Southern Cape)

Unspoilt beaches and white-washed architecture are characteristic of the area which offers a quiet holiday with fabulous fishing and water-based activities.

You can find an apartment for around R2 million in Struisbaai, and a small stone-house for around R1.8 million in Arniston.

Plettenberg Bay and Mossel Bay (Garden Route)

The area has seen a tremendous influx of semigration buyers over the last few years with Plett now a top choice for luxury buyers, mostly in the R2m-R6m range, says Alet Ollemans, licensee for Seeff Plettenberg Bay.

Mossel Bay still has plenty of vacant land to build your dream home, or buy a sectional title from R1.6 million, and a freestanding house from R2.1 million.

Jeffreys Bay and St Francis Bay (Eastern Cape)

Popular surfing destinations, and great holiday hotspots. Jeffreys Bay is priced from around R1.6 million, or buy in Marina Martinique from around R1.4m-R6.9m for a luxury holiday home.

Picturesque canals, a stunning coastline, and world-class golfing make St Francis Bay a top choice. There’s plenty of vacant land to build your dream home, or buy a house from R2.6m.

Umhlanga and La Lucia (KZN, Durban North)

Beautiful beaches, a vibrant lifestyle, and proximity to Durban make these popular with holiday makers and buyers.

Apartments are a top choice in Umhlanga, priced from R1.2 million, but ranging to over R20 million for a top waterfront location, says Brett Botsis, director for Seeff Umhlanga.

Growthpoint Properties, the JSE listed real estate investment trust (REIT), has announced it is commencing a landmark residential and retail development, Olympus Sandton, in partnership with luxury residential developer Tricolt.

Olympus Sandton will be situated in the mixed-use Sandton Summit precinct, anchored by the Discovery Head Office on the corner of Rivonia Road, where Katherine Street becomes Sandton Drive. This strategic investment aligns with Growthpoint’s vision to create South Africa’s premier walkable mixed-use precinct, capitalising on Sandton’s status as Africa’s leading financial district.

Growthpoint has been rolling out different elements of the Sandton Summit vision for over a decade now, and Olympus Sandton is its first development positioned to capture the increased demand for residential property in Sandton Central.

The R2 billion-plus Olympus Sandton development will comprise two towers. The first residential tower of 26 storeys will be the first phase of the development along Rivonia Road.

It will include a premium dining experience from Marble Hospitality Group on one of the tower’s upper floors, as well as its extraordinary Pantry convenience retail offering in Grade-A ground floor retail space. The second phase is a tower of at least 16 storeys, located east of the first.

The sale of the development’s more than 400 residential apartments by Tricolt has commenced and will launch to the public on 27 February 2025, with prices starting from R1.49 million.

Together Growthpoint and Tricolt will retain ownership of the two retail sections of the tower. Construction of Olympus Sandton is estimated to start in the latter half of 2025.

Sandton Summit is situated at the crest of Sandton Ridge, which is the highpoint of the area. Olympus Sandton’s 26-storey tower, although not the tallest building in the area, will become the highest in Sandton, offering unmatched views across Johannesburg and beyond.

Neil Schloss, head of Asset Management South Africa at Growthpoint Properties, said: “We believe that commencing the Olympus Sandton development is well-timed for the reawakening of the powerhouse that is Sandton Central, and aligned with its accelerated transformation into a vibrant neighbourhood.”

Timothy Irvine, Growthpoint’s head of Asset Management for Offices, added: “Sandton is experiencing a significant revival. After years of office downsizing, companies are now maintaining their physical presence and even starting to grow it again as return-to-office becomes standard practice.

“Vacancy rates in Growthpoint’s office portfolio are declining nationwide, with Sandton — the country’s cosmopolitan business capital — showing the start of a particularly promising recovery. Despite a slow initial post-pandemic resurgence, the district is adapting not only its office spaces to meet growing demand but its entire lifestyle, with more living and gathering spaces.”

Growthpoint recently sold its 151 on 5th building in Sandton to a residential developer. The group said it is also investing in taking Sandton into a new green era with its revolutionary e-co2 solution launching at 10 Sandton office buildings in mid-2025.

The e-co2 scheme will provide tenants with access to wheeled renewable hydro, wind and solar electricity at fixed escalations, sharing the benefits of Growthpoint’s milestone Power Purchase Agreement (PPA) for renewable energy, with which it secured 195GWh of green power.

This is one of several projects Growthpoint is undertaking that will make Sandton Central even more friendly for people, businesses and the environment.

Olympus Sandton’s design has been created through collaboration between Australian architectural practice ClarkeHopkinsClarke (CHC) and one of South Africa’s foremost architectural studios, dhk Architects.

The design of Olympus Sandton incorporates advanced sustainable building practices, including post-tension slabs and smart energy management systems, aligning with Growthpoint’s environmental, social and governance (ESG) commitments, including its 2050 carbon-neutral goal.

The Olympus Sandton development will target at least a 4-Star Green Star rating from the Green Building Council of South Africa (GBCSA).

South African energy trading company, Etana Energy, aims to secure R9 billion in new renewable energy investments.

This goal will be pursued through a strategic partnership with GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII), the UK’s development finance institution and impact investor.

GuarantCo and BII will provide $100 million ($50 million each) of default guarantee finance for Etana in South Africa’s largest “energy wheeling framework” transaction.

This innovative type of deal is designed to unlock new renewable energy capacity by providing independent power producers (IPPs) with the revenue certainty they need to break ground on new renewable energy projects.

It is expected that the $100 million in guarantee financing will unlock an estimated R9 billion of new renewable energy projects – providing a major boost to South Africa’s green energy transition – and underlining the UK’s support for the country’s Just Energy Transition Partnership (JETP).

Displacing fossil fuel generation with electricity generated from renewable sources will avoid 1.2 million tonnes of CO2-equivalent emissions annually and create a significant number of new jobs.

This transaction qualifies under the IPG (International Partner Group countries) as part of their JETP commitment to South Africa. JETP is funded by several governments, including the UK, and serves to accelerate South Africa’s environmental transition in the energy sector. This is GuarantCo’s first contribution to this programme.

The guarantee facility will enable around 500MW to be added to the grid by several renewable energy (wind and solar) IPPs over the next few years.

Recent regulatory changes in South Africa have opened up the opportunity for private power producers to sell electricity to business customers.

Companies like Etana are looking to accelerate this opportunity by buying renewable energy from private generators and selling it to a portfolio of commercial customers, “wheeling” the electricity across the existing transmission network.

Etana’s founding shareholders are H1 Holdings, a black-owned investment company with which BII has a longstanding relationship, and Chariot Limited, a British group which is focused on developing transitional energy projects in Africa, listed on the London Stock Exchange.

Evan Rice, CEO at Etana Energy, said: “We need to pursue all avenues that can unlock the capital required to build new electricity generation capacity in South Africa.

“Local businesses need low carbon, cost-competitive electricity to remain relevant and viable. Etana’s aggregation model offers a way to meet these needs whilst enabling new renewable energy capacity to be built.”

A groundbreaking initiative by Broll Auctions and Sales, Schindlers Attorneys, and Schindlers Digital Assets allows South Africans to purchase real estate using cryptocurrency in a secure and fully compliant manner.

This innovative approach enables cryptocurrency holders to convert digital assets like Bitcoin and Ethereum into property ownership while adhering to South African financial regulations.

Norman Raad, CEO of Broll Auctions and Sales, remarked, “We are excited to be the first to offer our clients this modern payment solution that aligns with our commitment to technological innovation in the commercial property sector.”

“Cryptocurrency adds a dimension to real estate transactions, simplifying the process and broadening the market beyond traditional investors.”

Schindlers Digital Assets, a registered Financial Services Provider, facilitates the conversion of cryptocurrency to fiat currency and ensures full regulatory compliance.

The firm handles the entire process, providing buyers with confidence and ease of use. Schindlers Attorneys oversees conveyancing and property transfer, ensuring the transactions remain legally sound.

“Schindlers Conveyancing is uniquely positioned as the first and only conveyancing law firm in South Africa capable of lawfully handling cryptocurrency payments for property transfers,” said Candice Dawkshas, CEO of Schindlers Digital Assets.

“This collaboration is perfectly timed as digital currencies gain wider acceptance in mainstream financial systems,” she explained.

“With more investors holding substantial crypto assets, the demand for using these assets in traditional sectors like real estate has never been higher.”

Interested buyers can attend Broll Auctions and Sales’ upcoming auction in Johannesburg on November 21, 2024, to utilize their cryptocurrency as payment.

A recent report by Luno, Bridging Digital and Fiat – Crypto’s Role in Modern Payments, highlights increasing crypto adoption for goods and services.

For example, Pick n Pay has seen monthly crypto payments grow from R25,000 to over R1 million in just a year.

A Luno social media poll revealed that nearly 40% of respondents use crypto for payments, reflecting its growing integration into everyday transactions. This trend is expected to surge on Black Friday, with local exchanges preparing for increased activity.

Luno also announced a rewards program where users earn Tether (USDT) instantly when paying with Luno Pay at Pick n Pay stores, offering up to 10% back on purchases.

Bitcoin reached a record high of $94,000 on Tuesday, driven by increased trading activity from institutional investors and optimism around potential policy benefits under the Trump administration.

While easing to $92,000 in early Asian trading, analysts predict further growth, with price targets as high as $154,000 based on recent trends.

As cryptocurrency gains traction globally, its role in real estate and everyday transactions underscores its potential to reshape traditional financial systems.

The practice of scanning visitors’ driver’s licences at residential estates, gated communities, and office parks has sparked concerns about compliance with South Africa’s Protection of Personal Information Act (POPIA).

Advocate Pansy Tlakula, chair of the Information Regulator, has

highlighted

issues of “overprocessing,” where entities collect far more data than necessary for security, including names, home addresses, ID numbers, and even photographs.

According to POPIA, businesses should only gather minimal, lawful information—typically a visitor’s name, vehicle registration, and car colour for security purposes.

The overcollection of data, such as scanning driver’s licences and vehicle discs, poses significant risks, particularly with growing cybercrime threats.

Questions about how this information is stored and secured remain critical, as these practices expose individuals to potential fraud and misuse.

To address these concerns, the Information Regulator is considering a code of conduct to ensure compliance with POPIA. Advocates like Ariel Flax from access system provider ATG Digital support limiting data collection to essentials and incorporating measures like data redaction, encryption, and secure cloud storage.

While digitised visitor management systems may enhance security compared to outdated handwritten logs, they must respect privacy rights and adhere to legal standards.

Excessive data collection not only undermines POPIA but also erodes public trust. Striking a balance between effective security and protecting personal information is vital to building a safer, privacy-conscious environment.

Teraco, a Digital Realty company and provider of interconnection platforms and vendor-neutral colocation data centres, says it has started construction of its 120MW utility-scale solar PV power plant in the Free State province.

In a world first for data centre operators, Teraco said it will own the 120MW solar PV plant and wheel the renewable energy to its data centres, with the plan to create its own sustainable energy source to power the next generation of client cloud and AI computing applications.

The plant is expected to come online in late 2026.

“Driving renewable energy infrastructure investment at a time when computing applications such as artificial intelligence are using increased power is an industry imperative. The need is even more acute in South Africa, given its electricity generation constraints and current levels of renewable energy penetration,” said Jan Hnizdo, CEO at Teraco.

“This is a significant step toward meeting our renewable energy ambitions and those of our clients. It is also only the first phase of our longer-term renewable energy commitment, with the construction commencement marking an important milestone in what has been a long journey over the last several years, and we are now looking forward to driving the project to completion.”

“This represents a unique, holistic approach since Teraco plans to not only own its data centres, but also to power them with a renewable energy source, creating a sustainable path to growth,” he added.

Teraco secured grid capacity allocation from Eskom for the solar plant in February and has spent the last eight months finalising plant design and the wheeling arrangements between Eskom and the municipalities of Ekurhuleni and Cape Town, within which several of Teraco’s data centres are located.

Wheeling renewable energy across electrical grids enables power to be moved from a renewable energy producer in outlying areas via existing transmission and distribution systems to end users in urban areas.

It also allows the deployment of renewable energy projects to areas with high energy yields to maximise their generation potential. Wheeling to multiple municipalities marks another first for renewable energy projects in South Africa.

Teraco has partnered with juwi and Subsolar to develop the 120MW solar PV plant, with juwi appointed to design and manage the procurement, construction, and commissioning.

Teraco will also be upgrading Eskom’s transmission infrastructure to allow the electricity generated to be successfully transmitted through the national grid. When fully operational, the 120MW solar PV plant is expected to produce more than 354,000 MWh annually.