Airports equal real estate catalysts

A gentleman in real estate once said to me: “If you can, always buy near the airport.”

Airports are economic engines. They generate constant demand through the volume of human traffic, exports and imports. That is why airports become dynamic nodes.

The land surrounding an airport is sometimes referred to as an “aerotropolis”. It is used to describe the mixed-use development surrounding the airport, shaped by air travel. I’m talking about all the accessory real estate, such as hotels, logistics companies and retail, industrial and commercial properties that complement the airport ecosystem.

It’s also worth remembering that airports and their accessory real estate assets create thousands of jobs. In a country like ours, we could use all the economic stimulation and job creation we can get our hands on. 

When airports are developed, so is the real estate surrounding them. The “city” essentially grows around the new airport. With this, business demand follows, which usually translates to rising property values. Get in early and you might just hit a home run on your property investment.

Industrial warehouses, logistics and last-mile distribution have been booming — right through the pandemic and up to now, with the national vacancy rate floating below 5%. Demand is strong, as shown by the small number of vacancies nationwide. Newly built warehouses are popping up everywhere. 

When it comes to E-commerce, courier services, cold storage and freight companies, the real sweet spot is to be as close to the runway as possible. It’s a resilient location for a resilient asset class. 

Growthpoint and Cape Winelands Airport have entered a partnership to redevelop the Cape Winelands Airport into a new grand aviation hub. Recently, WBHO Construction was announced as the project’s construction partner. With South Africa’s largest listed property fund and a reputable construction firm such as WBHO involved, the project has strong backing.

I always say that investment flows where confidence goes and all the above is sure to have a major impact and influence on the development of the surrounding area. 

This leads me to the opportunity in our smoking-hot industrial sector. One upcoming industrial development that has caught my eye is Mountain View Business Precinct, scheduled to commence construction in the coming months. 

The industrial zoned, 50-hectare site (about the size of 50 rugby fields), midway between Durbanville and the new airport, will be home to the northern suburbs’ newest industrial expansion. 

I got in touch with the developer, Alwyn Kannemeyer, from Urban Town Property Development, to learn more about their project. The precinct will be a combination of opportunities, ranging from larger distribution centre sites (phases 1 and 2), through to light industrial micro-warehousing stands and turn-key solutions within a secure business park (phases 3 and 4). 

The total gross lettable area is about 200 000m², allowing for efficient access, truck circulation and plenty of yard area. 

The vision is clear: by adopting careful attention to detail, they will transform the industrial experience into a business lifestyle environment, creating an “address” that stands apart from the traditional hard-edged landscape. 

Alwyn says the enquiry tab on their website is buzzing with interest from those who want to secure a piece of the property pie, with 50% of phase one sold out. Transfer of phase one will be circa April 2027.

They anticipate breaking ground to install services and the long-awaited Darwin Road (a class 3 public road linking Durbanville Industrial to Buh-Rein Estate) in the next three to four months, upon the City of Cape Town’s approval. 

Also notable is that the implementation partners on this project (Alwyn’s co-developers: Craig Myburgh, Bennie Rheeder & Wihan de Villiers) were instrumental in the development and roll-out of the extremely successful (and massive) development, Brackengate Business Park — home to the 53 000m² Massmart distribution centre. This is possibly one of the biggest DCs in the country and a total catalyst, as far as logistics sites go, in the area. We can welcome their seasoned expertise to the development of Durbanville’s industrial space.

Projects such as Mountain View Business Precinct represent the beginning of many similar developments. I anticipate that sectors such as retail, hospitality and industrial will expand rapidly in the area. Hopefully, infrastructure improvements and a mobility plan will be implemented to manage the increasing traffic, which is under pressure. 

Other nearby developments that will increase the aerotropolis’s value include the Stadio University, set to open in 2026, alongside several reputable schools that are in place, such as Curro. 

New retail options, such as the Groot Phesantekraal View Mall that opened in 2025 and residential projects focused on student housing are under way and should be coming online in the next three years. 

Combine all this with the planned North West Corridor identified by the City of Cape Town as a significant urban growth and development corridor, which will link the R300 (N2/Mitchells Plain) to the N1 and extend to the N7 and the West Coast. 

But airports are not property fairy godmothers with a magic wand. 

Proximity to a runway does not automatically translate into returns. Timing, pricing, zoning, infrastructure readiness and governance matter. If the road network can’t cope, if bulk services lag or if planning approvals stall, even the best located land can sit idle for years. We have seen the movie before.

There is also a difference between investing in an ecosystem and speculating on hype. Airports create opportunity, yes, but only when development is sensibly phased and demand is real. Buying early can mean upside. Buying at the wrong price can mean holding costs with no yield. You have to buy right.

This is where local government has a starring role. Airports pull investment toward them but municipalities must meet that momentum with credible mobility plans, service capacity and long-term spatial thinking. Otherwise, we simply shift congestion, not growth.

When done right, airport-led development is one of the clearest examples of how infrastructure shapes cities. It shows how confidence, capital and concrete follow one another in predictable patterns. You can see the future taking shape long before the first tenant moves in.

Which brings me back to that old line in real estate. Buying near the airport is not about the planes. It’s about understanding where people, goods and money are going next and getting there before everyone else does.