The Northern Corridor between Durban and Richards Bay is a very attractive location for new industrial and logistics facilities, given that these two cities constitute the dominant sea ports serving Southern Africa. The Western Corridor (on the N3 route between Durban and Gauteng) is also favoured by logistics and warehousing operators. At a sector level, industrial property was the top performing sector during the year with a total return of 13,6 percent in 2016.
The Durban Port and increasingly the King Shaka International Airport have continued to be key drivers of demand for industrial and logistics services in the region. Furthermore, there are prime opportunities available along the Western Corridor (N3) connecting to Gauteng and in close proximity to the Port of Durban. The sector is likely to continue to grow as government implements policies to stimulate exports and companies seek to maximise supply chain efficiencies, as South Africa solidifies its position to access SADC markets.
Large scale, well located industrial land is in scarce supply within the eThekwini region. Government planning frameworks are in support of industrial expansion occurring in the North, predominantly in the area surrounding the airport, which is projected to accommodate over 70 percent of planned future industrial land.
There are opportunities emerging in the area of manufacturing, supported by government in the form of Department of Trade and Industry (DTI) incentives, the designation of Special Economic Zones (SEZ), as well as a push towards increasing local content in government procurement.