SAMRRA institutionalizes South African Multifamily Rentals, prioritizing inclusive opportunities, consistent returns and stakeholder satisfaction. Join us in shaping a resilient future through transparent industry value promotion. To institutionalize the South African Multifamily Residential Rental asset class (“Multifamily Residential”). To grow the Multifamily Residential asset class by endorsing an inclusive investment grade opportunity that provides consistent and reliable risk adjusted returns, with high impact potential. SAMRRA’s core values are centred around an inclusive approach to stakeholder satisfaction. Through proactive stakeholder engagement, we aim to build and foster key long-term relationships which endorse the transparent promotion of the Multifamily Residential asset class and help unlock sustainable industry value. By adopting these (values) and pursuing our mission with dedication, SAMRRA is committed to achieving its vision whilst delivering a service of the highest standard. Multifamily Residential property represents privately owned residential stock, designed specifically for renting rather than for sale. Properties are typically owned by institutional investors and managed by specialist operators. This asset class is a property classification characterized by large-scale residential property rental supply, which provides consistent long-term income for investors. Multifamily Residential assets commonly include apartment buildings: multiple separate housing units for residential inhabitants, contained within one or several buildings within a single complex/estate. Units can be next to each other (side-by-side units), or stacked on top of each other (top and bottom units). South Africa has a growing demand for a quality, affordable housing that provides occupants with the safety and amenity that more conventional housing projects do not offer. Its unmet demand continues to grow, driven by rapid urbanisation and social-economic challenges which include economic uncertainty, a growing middle class, consumer affordability issues, decreasing household sizes and slow delivery of new housing supply. In developed markets – the United States, United Kingdom and rest of Europe – Multifamily Residential represents a significant portion of the total property market. Institutional investment in South African Multifamily Housing is, however, relatively small, representing less than a 2% of the South African property market. During the COVID-19 pandemic, the asset class largely performed better than other property sub-sets and demonstrated a track record of being a low-risk and stable investment. Investment Potential: In urban hubs, Multifamily Residential properties can offer investors consistent rental yields, capitalizing on rental demand. South Africa continues to face rapid urbanization, with increased demand for quality housing. Multifamily Residential properties help meet this demand requirement and provide tenants with access to important social amenity and opportunity. In major metropoles, the supply of well-managed, quality housing cannot meet housing demand. Multifamily Residential properties offer an efficient solution to this dynamic. Rising property prices and social-economic factors often make renting a more viable option for South Africa’s growing housing requirements. Multifamily Residential properties present affordable rental opportunities with financial flexibility. Economic uncertainty makes renting attractive to occupants due to its flexibility. Multifamily Residential properties cater to various income groups and demographics. Multifamily Residential often acts as a natural hedge against a rising or high interest rate environment where home ownership is potentially less available or sort after. A large majority of South African public do not have access to quality social infrastructure and amenity. Multifamily Residential properties include added social features like security and communal areas, appealing to those seeking convenience and community Number of Members Asset (portfolio) Number of Multifamily Average value
Empowering the Future of Residential Letting
Purpose
Vision
Values
What is Multifamily Residential Rental Property?
Market insights
Market forces:
Urbanisation
Quality Housing Shortage
Affordability
Economic Outlook
Social Amenities
(Institutional landlords)
13 members
value represented
Over R40 billion
of asset value
apartments represented
Over 75,000 Apartments
per apartment
R575,000 per apartment
