Moneyweb reports that the new Akademia campus, a R3.2bn purpose-built university for Afrikaans students, is under construction east of Pretoria and is already reshaping local land prices.
Joop Coetzee, an estate agent with RainMaker Agri who has worked in the area for 25 years, says sellers are now asking R1 million per hectare for vacant land, a price that would have fetched R3.5 million to R4 million for a 4.2-hectare smallholding with two houses only a few months ago. He attributes the jump to the campus project, but cautions that many buyers do not realise Akademia will build its own student residences and that property development needs large capital, long lead times and regulatory approval.
What the campus entails
Henk Schalekamp, managing director of Kanton Beleggings, the Solidarity movement’s property arm that is developing the campus, says the first phase, costing R1.8 billion, should be finished by October 2027 and will open to students in January 2028. The second phase, slated for completion by 2030, will add two more residences, a new lecture block, an auditorium and a chapel. All retail on site will be run by Akademia under its “Sowel As” brand; there will be no third-party shops.
Schalekamp points to other South African campuses such as Potchefstroom and Stellenbosch as examples of how dense student populations can create economies of scale that make surrounding developments viable. He notes that a developer has already bought land at the campus entrance for a residential project and that private student-accommodation schemes are being planned.
Ben Espach, director of valuations at Rates Watch, says the influx of students will generate demand for everyday items, from bread and milk to entertainment, and that staff, who number about 400, will also look for nearby housing. Property economist Erwin Rode of Rode & Associates predicts that within ten years the agricultural smallholdings that dominate the area will largely disappear, citing the Equestria development as a precedent.
However, both Coetzee and Rode warn that the market is overheated. Coetzee reports a four-hectare smallholding currently listed for R12 million, far above historic levels. Rode adds that developers may try to acquire multiple parcels quietly, driving prices up further. He also flags the risk of an oversupply of student accommodation if many parties attempt to build their own units while Akademia is already providing on-site housing.
The regulatory backdrop adds another layer of uncertainty. The former Kungwini local municipality, dissolved into the City of Tshwane in 2011, had rezoned some land for high-density use. The City of Tshwane has now announced that any Kungwini rezoning approvals not proclaimed by the end of March 2027 will revert to agricultural status, potentially stripping developers of the rights they counted on.
For local businesses, the campus could be a catalyst. Espach says the concentration of students and staff will create a “mix of opportunities” for existing retailers and for new entrants such as coffee shops, convenience stores and possibly a hotel. He notes that industrial development is unlikely, but that a hospitality offering could make sense given the visitor traffic campuses typically attract.
In short, the Akademia project is a double-edged sword for Pretoria East. On the one hand, it promises higher land values, new construction jobs and a customer base for retail and service firms. On the other, inflated expectations, regulatory risk and the danger of an accommodation oversupply could leave some investors with vacant properties.
For SME owners considering a foothold in the area, the key question is whether they can match the scale and timing of the university’s own development plans, or whether they should look for niche opportunities that complement the campus without competing directly with its on-site services.
