Abstract:
The South African REIT market has grown significantly over the last decade and has
consistently produced competitive total returns compared to other international REIT
markets. However, the South African REIT market is comprised almost entirely of REITs
which are diversified across two or more of the property sectors and is significantly underweighted
in terms of its residential exposure when compared to other developed and
emerging REIT markets.
Until June 2015, no pure residential REIT offering existed. This research attempts to better
understand the challenges faced with investment in the residential sector in South Africa and
in the establishment of residentially focused REITs. It also attempts to gauge market interest
in investing in residential rental stock.
