MAIN IMAGE: Adrian Goslett – regional director & CEO of REMAX Southern Africa, Tony Clarke – MD of the Rawson Property Group, Jan le Roux – CE of Rebosa
Editor
Last week, the Pretoria High Court denied an interdict against the new employment equity quotas sought by Sakeliga and the National Employers’ Association of South Africa (NEASA). Both organisations have since announced their intention to appeal directly to the Constitutional Court.
Read: Does the new Employment Equity Act affect your business?
The appeal seeks to suspend the new targets and regulations, which came into effect on September 1, 2025. Regardless of the outcome of this urgent application, Sakeliga and NEASA will proceed with a separate legal challenge to have sections of the Employment Equity Act and the Minister’s quotas declared unconstitutional.
In the interim, they have released recommendations for employers on how to navigate the new regulations.
The implications for the real estate sector
“In the past few years, the real estate industry has increasingly faced other transformation regulatory requirements, like the Property Practitioners Act, which now requires a valid B-BBEE certificate for Fidelity Fund Certificate renewals,” says Adrian Goslett, regional director & CEO of REMAX Southern Africa. “These legislative developments mark a crucial phase in South Africa’s broader transformation strategy, and the real estate sector is both impacted and mandated to contribute positively to this national goal.”
Tony Clarke, MD of the Rawson Property Group, shares that the dismissal of the urgent application means designated employers—including South Africa’s largest real estate groups—must proceed as if the Minister’s employment equity targets are valid.
For the real estate sector, this has the following implications:
- Compliance pressure on large agencies: The biggest agencies, which employ hundreds of people, are now squarely in the “designated employers” category. They must align their employment equity plans with the new targets to secure compliance certificates, which are necessary for tenders and partnerships.
- Flexibility remains, but requires careful management: The Court noted that employers can justify deviations from the targets if strict compliance would lead to unfair discrimination or is operationally impractical. This offers real estate agencies some flexibility to account for factors like regional demographics and commission-based agent models.
- Industry-wide implications: The new regulations will intensify pressure on larger agencies to demonstrate measurable progress in transformation, particularly at senior and ownership levels. However, rigid quotas could risk disrupting business continuity in smaller markets.
A smaller business perspective
“We support transformation initiatives, but the addition of yet another requirement is of concern, as compliance issues have been growing exponentially over the past few decades and are making the operation of smaller businesses more expensive and cumbersome. Residential real estate has always thrived through small companies that offer employment to many, and it would be sad if these companies eventually succumb under mounting pressure. We will be watching developments with great interest,” shares Jan le Roux, CE of Rebosa.
