With growing pressure to meet climate goals, cut operating costs and meet tenant expectations, property developers are increasingly adopting smart building systems powered by IoT and AI. Technologies such as smart HVAC, adaptive lighting, predictive controls and real-time water and energy monitoring allow buildings to respond dynamically to usage patterns and environmental conditions. Interest in these systems is also rising owing to the pursuit of green certifications, heightened investor scrutiny and accelerating digital transformation across sectors.
In South Africa, major players are stepping up. Redefine Properties has introduced smart metering across its industrial portfolio and launched the GoCity super-app, which streamlines access control, visitor management, parking and tenant communications. Several of its buildings have achieved Net Zero Carbon status. This reflects strong integration of energy data and control systems.
Growthpoint Properties is incorporating smart energy management into new developments, such as Olympus in Sandton. Its e-CO₂ energy wheeling initiative enables tenants to access renewable electricity through the municipal grid, even where rooftop generation is limited. The company is also using IFC-backed green bonds to fund efficiency retrofits across its national portfolio.
Scaling these technologies comes with challenges, especially when upgrading legacy assets. Issues such as system compatibility, data infrastructure and cybersecurity risks must be carefully managed as buildings become increasingly connected.
What does the business case look like for companies?
Smart, sustainable buildings offer a clear business advantage. However, capturing that value requires upfront investment in the right systems. Incorporating sensors, automation and analytics into new developments or major refurbishments help to enable long-term adaptability, while improving energy efficiency and operational insight. For existing properties, green finance tools such as sustainability-linked or green bonds can fund targeted upgrades that deliver measurable cost savings and tenant benefits.
In order to scale these solutions collaboration with technology providers, utilities and municipalities is required. These partnerships can unlock smart metering, help manage loads dynamically or tap into renewable energy via wheeling schemes. The effectiveness of these systems depends on robust digital infrastructure that values data quality, interoperability and cybersecurity. Smart systems not only enhance performance, but also improve sustainability reporting supporting frameworks like IFRS S2 and TNFD. This is particularly so when metrics like energy use, water efficiency and emissions intersect with risk and governance.
For more information contact David Krone.
