According to the MSCI South Africa Bi-Annual Property Index, commercial property returns dipped slightly during the first half of 2023.
The index, based on asset level data collected from a sample of 1 837 properties across 25 portfolios with a total capital value of R367.4 billion at the end of June 2023, represents approximately 56% of professionally managed investment properties in the country.
The total return for the six-month period was 3.5% compared to the 5% of the previous bi-annual period and comprised an income return of 3.9% which was partially offset by a negative capital growth of -0.4%.
On an annual basis, the index’s overall total return was 8.7% which was still well above inflation.
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