A persistent residential rental shortage drives predicted price growth, while commercial property, particularly office space, faces headwinds but shows vacancy improvements due to limited new supply.
South Africa is a rental nation. Some 4.5 million households-nearly one in four-rent their homes, and the apartment rental segment added roughly 54,000 units in five years, writes Old Mutual Alternative Investments in a LinkedIn post.
The private alternative investment manager says that, yet, institutional-grade rental stock remains a fraction of the market.
“That gap creates a compelling investment opportunity in professionally managed, well-located rental platforms that reflect how South Africans increasingly live: urban, mobile and affordability-conscious. In multifamily residential, delivering quality, secure and accessible homes is not separate from the investment case,” Old Mutual Alternative Investments says.
Earlier this month, Aidan-John (AJ) Rothman, CEO of Tuhf Capital, said the housing market has always been resilient because it is linked to real economic activity.
