Airport-centric industrial nodes in South Africa on the rise

There are so many varying dynamics that come into play when one is choosing which industrial property to start their new business out of. Locality and positioning are key factors for the successful operation of any business but even more so with an industrial one. South Africa is a highly industrialized country where nodes of industry are located all over the financial epicenters of the country.

Over the last few decades the need and urge to set up what experts are calling “airport-centric” areas are becoming increasingly popular. It’s stated that the most airport-centric cities are Johannesburg and Cape Town for varying reasons. Johannesburg most notably for the sheer amount of economic activity in the region and Cape Town for both its economic development as well as it is one of the most visited cities on the entire African continent.  This is according to a study conducted by Masilonyane Mokhele entitled - Spatial economic evolution of the airport-centric developments of Cape Town and OR Tambo international airports in South Africa.

“In comparison to other airports in South Africa, they accommodate substantial and diverse concentrations of economic activity and thus serve as good platforms for

analyzing the spatial economic evolution of airport-centric developments. In the case-study selection process, substantial concentration of economic activity was taken to refer to the physical extent of the airport-centric development, particularly on the landside and around the airports. It was, however, not possible to calculate the densities (number of firms per hectare, for instance) because of the lack of comprehensive information required for such calculations”. – Masilonyane Mokhele.

However King Shaka International has also followed in a similar regard now with the adjacent Dube Trade port which is enabling Durban to slowly become a more airport-centric area and city. This has also made the need for accommodation near the airport a demand. “There has been increased demand for industrial accommodation in areas with good proximity to King Shaka International Airport and the Durban Port, a key location for South Africa’s trade activity. This has contributed to the increased demand for logistics, warehousing and distribution centres, emphasizing the common trend in the type of accommodation occupiers require, gravitating towards logistics facilities and distribution centres across the country” –Durban Industrial Report 2016 (JLL).

Demand for industrial property in industrial areas near the airport is particularly high as investors see the value of being so close to key infrastructure. Leading company API Property Group have 18 available properties available for rental in the sought after Airport Industria node. “Property surrounding Cape Town International Airport has become extremely sought after as an investment. Airport Commercial and industrial property demand, from both upcountry and Cape Town tenants, owner occupiers and investors are extremely high and supply is limited. Good capital gains are expected as the Airport commercial and industrial property area grows. Airport Industria has the established, Airport Industria Improvement District (CID)”. - www.gdpindustrialproperty.co.za/airport-property/. These are all huge contributing factors why so many people want to invest in Airport Industria in Cape Town.

As South Africa continues in its industrial and commercial exploits it’s highly pivotal to choose the best location in order to keep up with the competition. Cape Town is widely regarded as one of the best cities to live in, in the world. So why not set up your next industrial operation in this world-class city. Get in contact with an API broker today and start your next industrial operation from Airport Industria in the Western Cape. There really is no time to waste properties in this area are going fast.