The MSCI South Africa Annual Property Index for the twelve months to the end of December 2023 revealed an 8.6% ungeared total return for direct real estate which surpassed the year’s consumer price inflation of 6%.
The total return for the year comprised an income return of 8.2% and a marginally positive capital growth of 0.4%.
On the back of higher interest rates, a weaker property net operating income yield detracted 2.5% from capital growth. However, this was offset by a 4.5% growth in net operating income which, coupled with an improved vacancy rate, suggests that the sector’s fundamentals remained healthy, continuing its trend in the right direction.
For more detailed information on SA’s property trends, download a free copy of the latest report here (free to SAPOA members only).
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- Visit www.sapoa.org.za.
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