Critical Success Elements for Central Government Real Estate Asset Management in South Africa—A Literature Survey

Abstract

The need to manage public real estate assets effectively and efficiently is increasing globally. The widespread appreciation for assets management is due to ongoing government reforms and budget cuts that compel government departments to raise revenue and cut spending. The National Department of Public Works and Infrastructure (NDPWI) in South Africa owns diverse and capital-intensive assets which require systematic management practices, including following local and global trends. A comprehensive literature review covering Public Real Estate Asset Management in South Africa (PREAM), public sector reforms, Asset Life Cycle Management (ALCM), current and future public asset management trends was carried out. The review aimed to identify the elements necessary for a successful PREAM. By presenting this review, it is also intended to establish the extent to which the discovered elements could improve the usefulness of state buildings at the lowest possible cost. The results show that asset management information systems, ALCM, regular asset needs analysis, and performance management are essential elements for effective and efficient PREAM. Rapidly changing information technology, globalisation, increased focus on performance management, rising service delivery standards and changing socio-economic circumstances among the current trends driving PREAM changes. The study further found that through adherence to legislation and application of asset management best practices, the central government could enhance asset management effectiveness and efficiency and ultimately improve service delivery quality.