While government-promised mega projects that could turn South Africa into a construction site have yet to get off the ground, the industry has shown signs of improvement, with the construction pipeline expanding by more than R13bn over the past 12 months.
Elsie Snyman, a construction analyst at Industry Insight, said as of June 2026, the pipeline had increased by more than R13bn, or 7.4% year-on-year. She said these statistics are measured strictly on real indicators such as building approvals and tenders.
She added that South Africans have heard a lot recently about the R264bn pipeline included in the “Construction Book”, but they have heard similar announcements before.
Speaking at the Sustainable Infrastructure Development Symposium of South Africa this week, President Cyril Ramaphosa said the third edition of the Construction Book contains more than 170 projects, with an estimated value of R264bn, that are expected to enter procurement over the next 12 to 18 months.
He said the publication, released this week, provides the market with a clear view of funded and investment ready infrastructure projects.
However, Snyman said projects in the Construction Book would still need to move through funding, approval, adjudication and procurement processes.
“For this reason, I prefer to take a somewhat closer look at what is already in the pipeline for the next 12 to 18 months, focusing on projects that have been approved and/or are already out to tender. I believe this gives a much clearer short to medium term strategic focus for stakeholders in the construction industry.”
The analyst said this did not mean the industry should discard the mega projects that are expected to come through and could potentially turn the country into a construction site.
“But for now, I prefer to focus on what is actually happening on the ground. We've heard similar rhetoric from government for many years, while investment levels continued to deteriorate. This time, however, at least the data is starting to look a little better.”
Snyman said that, because the pipeline is built from the bottom up, several provinces are starting to stand out, particularly KwaZulu Natal, Limpopo and the Northern Cape. She said the Western Cape still has a relatively strong pipeline, although its rate of growth has slowed, while Gauteng continues to struggle.
“Some provinces are showing stronger growth potential in the civil sector, while others are benefiting from improving private-sector demand in the building market.”
Meanwhile, Ross Minnaar, a commercial and industrial broker, said industrial property had the best year of any asset class in the country, delivering a 13.4% total return in South Africa in 2025, ahead of retail, office and residential property.
“Vacancies in the sector are sitting around 3.6 to 3.7%, among the tightest in the market - landlords aren't struggling to fill space, tenants are struggling to find it. The demand isn't evenly spread - e-commerce and logistics operators are driving it, and they want modern, well-located distribution space, not just any shed with a roof.”
given.majola@nationalmg.co.za