South Africa : South Africa's real estate sector regains color in the eyes of investors

The South African real estate sector is regaining color in the eyes of investors. Equity funds that pool and manage sector assets perform well on the Johannesburg Stock Exchange, South Africa’s main financial market.

According to market data consulted by the Ecofin Agency, their valuation has increased by 20% since the start of the year. Among the best performers in the sector is Emira Property Fund, whose market value has risen 58.5% since the start of the year.

The market is thus reacting positively to the fact that since the start of 2021, South Africa has not experienced major containment, at least not of the magnitude of 2020.

This makes it possible to consider with confidence the income prospects in the sector, in particular with regard to rental income, retail and office spaces, but also hotels and other housing services. In the tourism sector, for example, there has been an upward trend in domestic airline tickets and hotel reservations.

The growth of listed real estate funds in South Africa should be followed. The country’s economic analysts are still waiting to see what the effects of the wave of covid-19 sweeping the country will be. He is one of the most successful vaccination campaigns in sub-Saharan Africa.