Offshoring is fast becoming a powerful growth engine for South Africa, with ripple effects already visible in the country’s property sector.
Defined as the relocation of business services to another country, offshoring has become a central component of many global companies’ strategies, particularly those seeking cost efficiencies and access to skilled labour.
According to Jasmine Araujo, senior manager for Financial Services and Commerce at Robert Walters SA, offshoring is driving job creation across finance, IT, BPO, and customer support—fuelling new demand for residential and commercial real estate.
“Offshoring is bringing in thousands of jobs in finance, IT, BPO and customer support. This is drawing skilled professionals, particularly youth, into urban centres. The result is a healthy demand for quality residential housing, co-living, and mixed-use developments close to work,” Araujo said.
Robert Walters SA, a recruitment firm working with global employers, notes that offshoring is also stabilising the commercial rental market, particularly in areas where international firms lease space.
Landlords benefit from long-term income, and many companies are investing in renovating buildings or commissioning custom-built office parks—enhancing the value and quality of commercial real estate.
“Global firms are signing long-term leases, renovating existing buildings, and even commissioning custom-built office parks. This raises the value and quality of commercial real estate.”
Beyond real estate, Araujo points to the wider urban revitalisation in areas such as Cape Town CBD, Sandton, and Umhlanga, where infrastructure and amenities are expanding in response to offshore-driven development.
Looking ahead, she said the impact of offshoring will extend beyond major metros. “As talent demand rises and recruitment spreads to new regions, so will the footprint of offshoring—driving property development in secondary cities.”
She added that international employers will increasingly seek real estate that reflects their global brand standards—such as green-certified buildings, smart offices, and collaborative spaces like WeWork or Spaces. “This elevates South Africa’s commercial real estate profile,” she said.
Araujo also noted the long-term potential for offshoring to stimulate demand for affordable housing and youth-centric developments, with the influx of mobile young professionals spurring more innovative residential design and urban planning.
Why South Africa?
New data from Robert Walters shows South Africa is gaining traction as a top-tier offshoring destination. In a recent global survey, 60% of business leaders ranked South Africa as the most attractive country for offshoring—far ahead of India (10%), the Philippines (10%), and Eastern Europe (19%).
The main drivers? Access to skilled talent (41%) and retained earnings (39%) remain top priorities globally. But South Africa brings additional advantages: strong English proficiency, time zone alignment with Europe, and a growing reputation for high-quality business and tech services.
“We’re seeing a strong pipeline of international businesses establishing operations in South Africa – particularly in tech and support functions,” said Samantha-Jane Gravett, Director at Robert Walters Africa.
“South Africa offers an agile, highly capable workforce that aligns well with global business hours and standards. As more organisations look to build resilience, agility, and efficiency into their operating models, South Africa is stepping up as a go-to solution.”
The offshoring boom is being felt most in Tech and IT, which account for 53% of new roles created in the country. Other high-growth sectors include:
Finance and Accounting (20%)
Customer Service and Support (18%)
HR and Recruitment (9%)
This broad sectoral spread showcases South Africa’s ability to serve diverse business functions.
