Exploring the property development risks in modern South Africa and their impact on property development projects.

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dc.contributor.advisorViruly, Francois
dc.contributor.authorNomlomo, Chulumanca
dc.date.accessioned2026-01-13T11:54:44Z
dc.date.available2026-01-13T11:54:44Z
dc.date.issued2025
dc.date.updated2026-01-13T10:58:39Z
dc.description.abstractProperty development in South Africa is inherently capital intensive and risky but has the potential to reward brave developers through high returns. The risks that property developers face is multi-layered and unique to each project, requiring discernment on the part of the developer. However, projects likely to yield high returns are fairly easy to identify, and mitigation strategies can be implemented to ensure that property development projects are completed within cost and time limitations, and to a high standard. The intention of this study was to identify the property development risks in modern South Africa and the impact of these risks on property development viability, and to make recommendations on how identifiable risks may be mitigated in the property development sector. Property professionals were selected as participants in this study. These included senior executives in some of South Africa's largest development companies, people in the property finance industry, and those who deal daily with property development projects. All participants were interviewed one-on-one. This strategy yielded insight into the research questions, since participants were able to draw directly from their personal experiences. Responses in the interviews answered all the research questions and thus informed the recommendations made in this study. The study revealed that the main risks to property development projects in South Africa are political and socio-economic factors, municipal inefficiencies, social unrest, increases in municipal costs and materials, and lack of consistent power supply from Eskom. Increased capital costs in property development projects have reduced returns for property developers, forcing many to consider investing outside of South Africa. This was identified as the main impact of the risks on property development projects. The recommendations made in this study to mitigate property development risks are government subsidies for bulk infrastructure, fixing of material prices, greater engagement of all stakeholders in the property development process, ensuring that construction contractors have the required capacity and skills, greater use of technology in property development projects, and municipal rebates for property developers, in order to incentivise development. It is also recommended that in all property development projects, developers factor in potential cost increases.
dc.identifier.apacitationNomlomo, C. (2025). <i>Exploring the property development risks in modern South Africa and their impact on property development projects</i>. (). University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. Retrieved from http://hdl.handle.net/11427/42560en_ZA
dc.identifier.chicagocitationNomlomo, Chulumanca. <i>"Exploring the property development risks in modern South Africa and their impact on property development projects."</i> ., University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2025. http://hdl.handle.net/11427/42560en_ZA
dc.identifier.citationNomlomo, C. 2025. Exploring the property development risks in modern South Africa and their impact on property development projects. . University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. http://hdl.handle.net/11427/42560en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Nomlomo, Chulumanca AB - Property development in South Africa is inherently capital intensive and risky but has the potential to reward brave developers through high returns. The risks that property developers face is multi-layered and unique to each project, requiring discernment on the part of the developer. However, projects likely to yield high returns are fairly easy to identify, and mitigation strategies can be implemented to ensure that property development projects are completed within cost and time limitations, and to a high standard. The intention of this study was to identify the property development risks in modern South Africa and the impact of these risks on property development viability, and to make recommendations on how identifiable risks may be mitigated in the property development sector. Property professionals were selected as participants in this study. These included senior executives in some of South Africa's largest development companies, people in the property finance industry, and those who deal daily with property development projects. All participants were interviewed one-on-one. This strategy yielded insight into the research questions, since participants were able to draw directly from their personal experiences. Responses in the interviews answered all the research questions and thus informed the recommendations made in this study. The study revealed that the main risks to property development projects in South Africa are political and socio-economic factors, municipal inefficiencies, social unrest, increases in municipal costs and materials, and lack of consistent power supply from Eskom. Increased capital costs in property development projects have reduced returns for property developers, forcing many to consider investing outside of South Africa. This was identified as the main impact of the risks on property development projects. The recommendations made in this study to mitigate property development risks are government subsidies for bulk infrastructure, fixing of material prices, greater engagement of all stakeholders in the property development process, ensuring that construction contractors have the required capacity and skills, greater use of technology in property development projects, and municipal rebates for property developers, in order to incentivise development. It is also recommended that in all property development projects, developers factor in potential cost increases. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Property development KW - risk KW - development process KW - developments KW - property development stages KW - risk factors KW - land KW - economy KW - construction KW - finance KW - development LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Exploring the property development risks in modern South Africa and their impact on property development projects TI - Exploring the property development risks in modern South Africa and their impact on property development projects UR - http://hdl.handle.net/11427/42560 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42560
dc.identifier.vancouvercitationNomlomo C. Exploring the property development risks in modern South Africa and their impact on property development projects. []. University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42560en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Construction Economics and Management
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.subjectProperty development
dc.subjectrisk
dc.subjectdevelopment process
dc.subjectdevelopments
dc.subjectproperty development stages
dc.subjectrisk factors
dc.subjectland
dc.subjecteconomy
dc.subjectconstruction
dc.subjectfinance
dc.subjectdevelopment
dc.titleExploring the property development risks in modern South Africa and their impact on property development projects.
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMSc
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