- The commercial real estate market in South Africa is robust, valued at around $372 billion in 2025 with an expected CAGR of 1.59% through 2029[1].
- Alternative funders serve a large segment of SMEs, offering flexible loans often secured by business property, with higher approval rates and quicker turnaround times than traditional banks.
- South Africa’s alternative lending is set to increase from US$297.2 million in 2024 to reach US$619.6 million by 2028, with medium to long-term growth remaining strong[2].
- Unsurprisingly, the adoption of alternative lending is expected to grow steadily over the forecast period, recording a CAGR of 20.2% during 2024-2028[3].
September 2025: In the evolving world of property investment, savvy business owners are discovering significant advantages to purchasing commercial or industrial property within their own businesses. Beyond securing a physical space for operations, business-owned property offers distinct financial benefits, especially when it comes to accessing alternative funding and optimizing tax structures.
As part of the celebrations of Women’s month in August, two inspiring events aimed at women in business were held in collaboration with Paragon Finance and Socially Gathering in Johannesburg and Cape Town. Dedicated to women building wealth in property, topics included understanding the property market, how to get “funder ready” as well as building wealth with purpose.
Before diving into ownership, it’s important to understand the overall property landscape. Commercial and industrial properties closely track economic patterns. When the economy expands, demand for warehouses, offices, and retail spaces grows, especially near strategic locations such as highways, ports, and urban hubs. Understanding this dynamic informs better property choices that align with market trends.
According to Keke Khojane, Head of Office at Galetti Corporate Real Estate, one of the three presenters at both events, “Understanding the property sector is fundamental, knowing the market is your first and most important investment. Right now, the hottest opportunities lie in industrial spaces and green buildings, which are driving strong returns driven by e-commerce growth and sustainability demands. Location remains key, with proximity to transport hubs and cities significantly influencing value. The savvy investor spots these evolving trends early and positions themselves ahead of the market to capture lasting value.”
Investors who own property are uniquely positioned to benefit from stable, long-term lease agreements, often ranging from 5 to 15 years. Such leases provide predictable, inflation-linked cash flow, a financial anchor amid market fluctuations. Interestingly, business-owned properties tend to attract more interest from alternative funders who recognise the intrinsic value of these assets in supporting ongoing operations and cash flow stability.
With sustainability becoming a critical factor shaping property investments, energy-efficient, green-certified commercial buildings enhance a business’s competitive edge, not only meeting tenant demands but often qualifying for favourable financing and tax incentives.
Justine Cardoso, Financial Consultant at Paragon Finance, emphasises that success in property investment begins well before any documents are signed. “Access to capital can be challenging, but thorough preparation is the real advantage. Understanding the 8 C’s of Credit: Character, Credibility, Cash Flow, Capability, Collateral, Capital, Conditions, and Consistency – helps you present a credible story and a deal funders can back.”
“By explaining who you are and how you operate, setting out a straightforward purpose for the funds, and showing how the loan will be repaid with realistic cash-flow projections, you demonstrate that you can execute by highlighting relevant experience and the strength of your team,” Cardoso explains.
“Anchor the deal with valued security in a sensible location, contribute meaningful capital of your own, and confirm the practical conditions you can meet. Most importantly, ensure every element aligns: people, purpose, numbers, security, and timeline. When these pieces come together through careful preparation, lenders gain the clarity and confidence to approve your deal. This preparedness isn’t just a checklist; it’s your competitive advantage to secure financing and unlock property ownership,” adds Cardoso.
Owning property within your business is not just an operational choice; it is a strategic step towards business growth and wealth creation with fiscal advantages: tax deductibility, asset appreciation, capital gains management and wealth pyramid foundations are all factors to be considered.
According to Tamzin Stroucken, Wealth Manager at Anchor Capital, “Building wealth is not accidental, instead it requires clear intention and strategic planning at every step of your financial journey. The most important thing is to start where you are, no matter your current situation. From there, build with purpose, making deliberate decisions that align with your goals. Consistency is the secret to turning small, regular actions into lasting financial freedom. Intentional wealth building transforms aspirations into realities.”
“Many people think wealth comes from timing the market, but the real secret is time in the market. By embracing the power of compound interest and consistently investing, you grow your financial foundation steadily,” cautions Stroucken.
Coupled with disciplined debt control and a diversified investment spread, property ownership through business supports lasting financial freedom and legacy building. Stroucken adds,
“Diversification is like creating a healthy plate of food, meaning no single asset class should dominate. ”
Buying property in a business is more than acquiring real estate, it’s a powerful enabler of stable funding access, tax efficiency, and long-term wealth creation. Paragon Finance empowers business owners to become funder ready by understanding the market, mastering credit requirements, and building wealth with purpose. By strategically owning commercial property, businesses don’t just build for today, they secure a foundation for tomorrow’s opportunities.
[1] https://curriegroup.co.za/south-africas-commercial-property-market-in-2025
[2] https://www.businesswire.com/news/home/20241104777292/en/South-Africa-Alternative-Lending-Business-Report-2024-Market-to-Grow-by-29.5-to-Reach-$297.2-Million-this-Year—Investment-Opportunities-to-2028—ResearchAndMarkets.com
[3] https://www.businesswire.com/news/home/20241104777292/en/South-Africa-Alternative-Lending-Business-Report-2024-Market-to-Grow-by-29.5-to-Reach-$297.2-Million-this-Year—Investment-Opportunities-to-2028—ResearchAndMarkets.com
For more information, visit https://paragonfinance.co.za.
