Cost of Building a Mall or Shopping Complex Per Square Metre in South Africa 2025 to 2026 AECOM Guide

Executive Summary

The development of retail spaces in South Africa is a complex and capital-intensive endeavour, requiring meticulous planning and accurate financial forecasting. The AECOM Africa Property & Construction Cost Guide 2024/25 serves as a critical benchmark for developers, investors, architects, and quantity surveyors navigating this landscape.

Introduction: The AECOM Cost Guide as an Industry Standard

In the realm of property development and construction, reliable cost data is the bedrock upon which feasible projects are built. The AECOM Africa Property & Construction Cost Guide is a prestigious and widely recognised publication that provides estimated building rates for a variety of sectors across the African continent.

Defining the Scope: What the AECOM Rates Include and Exclude

A critical first step in utilising any cost guide is to understand precisely what is covered by the quoted rates. The AECOM guide provides this clarity, ensuring that comparisons and budgets are made on a like-for-like basis.

Inclusions in the Retail Building Rates

According to the guide, the provided rates for retail constructions include:

• The core building structure.
• Standard building services.
• Appropriate tenant allowances and specifications for national chain stores.

Exclusions from the Quoted Rates

The rates per square metre exclude several major cost components that must be budgeted for separately. These are:

• Site Infrastructure Development
• Parking Structures
• Professional Fees
• Value-Added Tax (VAT)
• Future Escalation
• Loss of Interest (Finance Costs)

Detailed Breakdown of Retail Construction Costs per m²

The AECOM guide categorises retail developments into six distinct types based on their size and trading model.

Source: AECOM Africa Property & Construction Cost Guide 2024/25

Analysis of Retail Categories and Their Cost Drivers

1. Local Convenience Centres (Up to 5,000m² | R10,500 – R13,800/m²)

These are the smallest retail formats, typically anchored by a supermarket or a large convenience store and supplemented by a handful of specialty tenants.

2. Neighbourhood Centres (5,000 – 12,000m² | R11,500 – R15,200/m²)

Slightly larger than convenience centres, these often feature a small supermarket as a anchor and a broader range of tenants.

3. Community Centres (12,000 – 25,000m² | R12,600 – R16,100/m²)

This category represents a significant step up in scale. A community centre is usually anchored by a large supermarket and a discount department store.

4. Minor Regional Centres (25,000 – 50,000m² | R13,300 – R17,100/m²)

This is where the development transitions definitively into the “mall” category. Minor regional centres are inward trading.

5. Regional Centres (50,000 – 100,000m² | R14,100 – R17,100/m²) & Super Regional Centres (100,000+m² | R15,500 – R20,000/m²)

These are the largest shopping destinations in a region or country. They feature multiple major anchors, a vast array of specialty stores, extensive food courts, and large cinema complexes.

The Critical Cost of Parking

As established, parking is a major excluded cost that must be calculated separately. The choice of parking solution has a substantial impact on the total project budget.

Source: AECOM Africa Property & Construction Cost Guide 2024/25

Putting It All Together: Calculating a Hypothetical Project Budget

To illustrate how the AECOM guide is used, let’s model a preliminary budget for a hypothetical Community Retail Centre with a Gross Leasable Area (GLA) of 20,000m².

Conclusion: Strategic Implications for Developers and Investors

The AECOM Africa Property & Construction Cost Guide 2024/25 provides an indispensable, data-driven foundation for navigating the South African retail development sector. The key takeaway is that cost is a function of ambition and scale.