THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY

1. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Sponsored by Dr. Douw Boshoff Universityof Pretoria, Department of Construction Economics

2. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Key findings of this study include Sponsored by • Non-residential real estate contributed approximately R174 billion to economic activity, or 5.15% of all economic activity in South Africa during 2013 • The contribution to gross domestic product (GDP) in 2013 by non-residential real estate is approximately R81 billion, or 2.4% of the total GDP in South Africa. • Non-residential real estate supports approximately 212 000 permanent jobs in South Africa, or 1.5% of all employment in the country as at the end of 2013. • There was a total of approximately R6.5 billion in taxes generated by non-residential real estate during 2013.

3. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY

4. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY

5. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Emphasis of the study • Economic Activity – sum of activity in each sector • Gross Domestic Product – value added by each sector • Job creation • Taxes on products and production • Direct, Indirect and Induced Impact • Economic impact – Not physical impact

6. THE ECONOMIC IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Emphasis of the study • National non-residential real estate • Provincial analysis • Property type analysis • Current and historical impact • Short term forecasting

7. CURRENT IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Non-residential as % of total Buildings completed as % of national

8. CURRENT IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Economic Activity • Office and banking space – R41.5 Billion • Shopping space – R38.5 Billion • Industrial and warehouse space - R43 Billion • Other non-residential – R11 Billion • Additions and alterations – R40 Billion

9. CURRENT IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Gross Domestic Product • Office and banking space – R19.3 Billion • Shopping space – R18 Billion • Industrial and warehouse space – R20 Billion • Other non-residential – R5.2 Billion • Additions and alterations – R18.6 Billion

10. CURRENT IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Employment created • Informal – 42 960 • Semi- & unskilled – 38 341 • Skilled – 98 520 • Highly skilled – 32 449 • Formal – 169 311 • Total – 212 270

11. CURRENT IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Net Taxes generated • Office and banking space – R1.55 Billion • Shopping space – R1.44 Billion • Industrial and warehouse space – R1.6 Billion • Other non-residential – R413 Million • Additions and alterations – R1.49 Billion

12. SHORT TERM FORECASTED IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Economic Activity and GDP • Economic activity - R7.8 Billion additional activity • GDP – R3.67 Billion additional contribution

13. SHORT TERM FORECASTED IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Additional jobs to be created • 13 065 additional jobs to be created

14. SHORT TERM FORECASTED IMPACT of the COMMERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY Nett taxes to be generated • R20.8 Million in Nett taxes to be generated

15. THANK YOU