As demand for rental housing surges.
South Africa’s growing appetite for professionally managed residential rentals is drawing the attention of major financial players, with Standard Bank now joining the South African Multifamily Residential Rental Association (Samrra).
The move comes as Samrra reports a strong start to 2025, with its members posting consistently high occupancy levels, strong rental collections and record leasing activity across their portfolios.
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Samrra’s members collectively manage over 75 000 residential rental units worth more than R40 billion.
According to the association, the sector recorded a weighted average occupancy rate of 95.8% in the first two months of the year, a signal of tenant stability and continued demand.
Appeal of multifamily living
“Consistently high occupancy and quality income streams are more a function of demand but also reflect skilled management and developments that resonate with appealing multifamily living,” says Samrra CEO Myles Kritzinger.
The addition of Standard Bank is expected to strengthen industry collaboration and support the growing role of purpose-built, large-scale rental housing in South Africa’s real estate landscape.
Bad debt across the portfolio remained below 1% of amounts billed, with collections remaining robust, a performance that compares favourably with other segments of the property market.
“The strong start to the year is encouraging not only for our members but for investors and stakeholders across the value chain,” says Kritzinger.
“It continues to demonstrate that multifamily rental assets are both resilient and investable, even as the broader macroeconomic environment remains complex.”
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Some of Samrra’s members have recorded record-high leasing volumes in the first quarter of 2025, reflecting an increasing preference among South Africans for rental options that combine security, location, and lifestyle flexibility.
Resilience
With the sector’s fundamentals showing resilience amid broader economic challenges, Standard Bank’s entry into Samrra is said to further signal growing institutional confidence in multifamily rental housing as a long-term asset class.
“Standard Bank is proud to join Samrra and support the growth of South Africa’s multifamily rental sector,” says Marlene Pillay, head of real estate finance at Standard Bank.
“We believe this asset class plays a vital role in addressing housing needs while offering long-term investment stability.”
Source: moneyweb.co.za
