Semigration: the rebirth of the Suburbs and Towns in South Africa

Personal technology and digital connectivity have advanced so far and so fast that people are asking, “Do we really need to be together in an office to do our work?”

We got our answer during the pandemic lockdowns, and we learned that a great many of us don’t, in fact, need to be collocated with colleagues on-site to do our jobs. Individuals, teams, and entire workforces can perform well while being entirely distributed.

Out Migration from Cities Up

Smartphones, smart-remote offices, smart homes, smart cars, smart shopping and now, slowly and necessarily, the reshaping of South Africa’s urban centres as smart cities. Semigration is a growing global trend that has seen individuals and families move locally in search of a more balanced lifestyle.

In South Africa, most out-of-city moves are ‘semigration’ related, i.e., people choosing to move to a different location within the country. The high-demand provinces are mostly considered as lifestyle or holiday as well as retirement destinations, specifically the Western Cape and KwaZulu-Natal coastal provinces. Additionally, peripheral and suburban areas in metros and secondary cities and towns have seen a resurgence of interest, and this time for permanent occupation.

The most common move during the pandemic was from the city centre to the suburbs; however, many people left large cities altogether, opting for less expensive or smaller cities and towns. It is now more than just the wealthy or retired, considering outlying and remote areas as primary residences. An enhanced focus on lifestyle, surroundings, quality of life and issues such as personal safety is seeing people of all ages, married, single, and families considering ‘semigration’.

The ‘Zoom Boom’

The ‘Zoom Boom’ has sparked mass migration from urban cities to smaller towns. Investors moving their wealth worldwide in search of greener pastures, greater returns, and more security is not a new concept. Now influenced by the ‘zoom boom’, major cities are experiencing a mass exodus as property buyers invest in suburbia, offering a higher quality of life for a fraction of the cost.

“The workplace is going through a transformation, which is characterised by decentralisation, as employers give employees the opportunity to work where is most convenient and productive for them, often in the hub and spoke model”, says Joanne Bushell, IWG MD, South Africa

This model provides geographical flexibility, allowing employees to choose where and when to go into a flexible workspace. IWG Plc. (Regus, SPACES and HQ in South Africa) have over 60 centres throughout the country, allowing employees to choose where to work. “I believe it’s our responsibility to support other local businesses so we can all grow together. By creating hubs in the communities where employees live, we’re fostering greater community connection and business growth”, adds Bushell

According to the chief executive of the Pam Golding Property Group, Dr Andrew Golding, semigration is not a brand-new trend that arose solely as a result of the pandemic. He says it has been taking place over the past five to seven years, primarily in coastal living and estates. The latest new normal is decentralising urban living from the greater metropoles to urban areas in smaller towns and cities.

Business opportunities can be won or lost in a matter of minutes. Having employees who can work from anywhere, at any time, and aren’t tied to their desks means small businesses can be more responsive. In fact, being fleet of foot is one of the most significant advantages over larger competitors.

IWG has signed partnership deals with Standard Chartered and Ernst and Young, amongst others, enabling them to work from any of IWG’s 3,500 workspaces globally. Today’s smart office technology empowers people to choose how they do their best work. And that means everyone on the team can make the right choices for them.

Some may thrive being in the office most days. Others may prefer to spend more time working remotely. With innovative office technology and the right serviced office environment close to home, it is a win-win situation for the entire team.

Growth of Hybrid Work Solutions in Small Towns and Suburbs

According to IWG footfall data from the last year, the demand for workspaces outside of busy city centres has grown by 36%. In fact, centres in suburban, town and rural locations have seen some of the most significant increases in attendance, with workers increasingly forgoing lengthy commutes to work locally.

To cater to this demand, IWG will add 1,000 locations globally over the next year, and the majority will be in suburban and rural locations – including in towns with populations as small as 10,000

A greener future

Proven over and over, hybrid working patterns also positively impact the environment and local economies.

Ultimately, this shift means the role of city centres worldwide is changing. With the rise of the 15-minute city within large city boundaries, global cities need to future-proof themselves by providing a combination of non-work services, entertainment, residential options and workplace facilities to cater to the new working population.

Mark Dixon, CEO of IWG, commented:

“The pandemic has proven the ability of global workforces to work effectively in different ways and in different places. Our research shows that hybrid working will continue to be very popular with employees and businesses.

We’re seeing a fundamental change in the geography of work with significant opportunities for the economies and communities of towns and cities globally. Previously, smaller cities, towns and rural communities faced an existential threat as many of their most energetic and economically active members were being shipped out to a city five days a week, returning only to rest before setting off again.

Now, hybrid working is allowing easier access to the best talent, invigorating local economies and enriching communities. Not only this, but it’s set to change the role of cities forever.

Employees have realised that hours have been wasted commuting to an office that they don’t need to be in, whilst businesses have seen that a hybrid model means not only happier and more engaged employees but also significant cost savings. This shift also has the potential to transform local economies.”

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