Africa-Press – South-Africa. The South African listed property sector is outperforming its real estate peers in the United States, the United Kingdom and Australia.
According to the Global Property Research (GPR) Market Update for November 2025, South Africa’s Real Estate Investment Trusts (REITs) saw some of the strongest total returns globally.
Data by GPR showed that South Africa’s listed property sector delivered a remarkable 9.7% total return in November 2025, pushing its year-to-date return to 46.2%.
For context, the Global REIT Index is only up 12% year-to-date, significantly trailing the South African market. Other nations include:
USA: 9.2% YTD,
UK:10.3%
Australia: 22.9%.
Japan: 27.4%.
Although the short-term numbers are headline-grabbing, the SA REIT Association said that the underlying data suggest a structural re-rating of the sector rather than a momentary spike.
The GPR data shows South Africa delivering a 44.7% return over one year, confirming a sustained upward cycle.
Longer-term horizons are also positive, with South Africa expected to return 20.6% and 23.6% on a three-year and five-year annualised basis.
In contrast, the global average over the last five years stands at just 7.3%, with the UK at -0.3% and Europe at 1.9%.
“The numbers we are seeing now are the dividends of discipline,” remarks Joanne Solomon, CEO of the SA REIT Association.
“This performance reflects five years of rigorous execution by management teams across the sector. When faced with the headwinds of the pandemic and economic uncertainty, our sector didn’t just wait for the tide to turn.”
Solomon added that management teams actively strengthened balance sheets, stabilised earnings and ruthlessly simplified portfolios to focus on core assets, with the market now pricing in that operational strength.
While high returns are usually accompanied by high volatility (risk), South Africa’s volatility rating over the last 36 months stands at 0.20, which aligns with global norms (Europe: 0.18).
For comparison, the volatility for the European composite is 0.18, and France specifically is 0.20.
“We are producing some of the highest returns in the global REIT universe, yet our risk metrics are in line with developed markets such as France and Belgium.
“It signals a mature, resilient market that is being driven by fundamentals rather than speculation.”
The sector’s recent performance coincides with several improvements in South Africa, including being removed from the grey list, a ratings upgrade from S&P, and a successful G20. This should increase capital flows.
Looking ahead
The V&A Waterfront in Cape Town, which is 50% by Growthpoint Properties
With the REIT sector surpassing the R300 billion market capitalisation for the first time since 2019, Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments, is optimistic about the future.
“With distribution growth accelerating to over 10% and property fundamentals on an improving trajectory, the sector is well positioned to deliver sustained returns for investors,” said Anderson.
“The combination of attractive forward yields, improving operational metrics and a supportive interest rate environment underpins our constructive view.”
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