Multifamily rental is climbing the ranks as Africa’s hottest residential asset class, with stabilised portfolios in market-leading South Africa posting occupancies above 95%.
The multifamily residential market in South Africa alone could absorb over R500bn ($30.7bn) in investment over the next decade, according to SAMRRA, whose members hold an estimated R40bn ($2.4bn) in assets (encompassing) 75,000 housing units) and comprise 13 institutional owners and banking stakeholders including Standard Bank, Absa and Nedbank.
The scope of opportunity is much broader across Africa, with the sector anticipated to play a pivotal role in solving Africa’s estimated 56-million-unit housing shortfall.
Performance data from SAMRRA’s members, compiled into a quarterly performance tracking dataset by Rode & Associates, shows occupancies of above 95%, collections above 98% and arrears under 1% of billings, in every quarter since August 2025.
“The multifamily sector offers institutional investors long-duration, inflation-linked income backed by significant and well established demand,” says SAMRRA CEO Palesa Mkhize. “In South Africa, we’re starting to see funds, banks and DFIs moving on the opportunity, and we expect the momentum to rapidly build both here and across the continent.”
SA’s institutions lead the way
In 2025, South Africa’s Public Investment Corporation, which manages the bulk of its roughly R2tn ($122bn) in assets on behalf of the Government Employees Pension Fund (GEPF), made its first ever multifamily investment, allocating capital for the funding of 2 500 new rental units with Divercity Urban Property Group.
In addition, GEPF owned Pareto has also partnered with Divercity for the office-to-residential conversion of Menlyn Office Park in Pretoria for R850 million ($52m) with the new Menlyn Apartments contributing to creating a mixed-use precinct around the landmark super-regional Menlyn Park Shopping Centre.
Meanwhile, South African multifamily pioneer Octodec Investments’ March 2026 inclusion in the FTSE/JSE All Property Index and SA REIT Index is another signal that multifamily is being recognised as a core, scalable and investable asset class. Octodec, under its City Property brand, holds the second largest residential property portfolio listed on the JSE comprising some 9,300 units.
Evidence from successful transactions and first-hand perspectives on capital allocation and deal structuring from South Africa’s largest multifamily investors, developers and dealmakers will lay the foundations for the opening expert panel discussion at the API Multifamily Forum, taking place on September 18 during the API Summit at the Cape Town International Convention Centre.
The not-to-be-missed three-panel Multifamily Forum will also feature insightful discussions on the management standards that define high-performing multifamily portfolios, as well as the role of government in scaling the sector through policy, development finance and urban planning.
"The introduction of the Multifamily Forum to the API Summit is a clear signal that multifamily rental housing is no longer merely a niche play. It is a cornerstone of a balanced, resilient real estate sector, and of society and the economy. Multifamily has earned its seat at the institutional investment table,” Mkhize adds.
“As fragmented holdings consolidate into an institutional-grade asset class underpinned by sound fundamentals and compelling, demand-driven growth prospects, multifamily has established a proven performance track record. Now, it’s all about scaling it."
The speaker line-up includes executives from multifamily rental housing leaders such as Divercity and Houss Rentals, representatives from the PIC, Development Bank of Southern Africa and the public sector, together with leading investors and fund managers.
