Banking sector signals confidence in multifamily residential rental market

Standard Bank has become the first financial institution to join the SA Multifamily Residential Rental Association (Samrra), showing increased institutional interest in SA’s growing large-scale residential rental property market, often referred to as the multifamily residential rental sector.

This comes after Africa’s largest asset manager, the Public Investment Corporation (PIC), made its first investment in the multifamily residential rental sector member Divercity, earlier this year, signalling the sector’s growing appeal to big institutional investors.

“The active participation of a leading commercial bank in the sector’s leading representative body signals a significant shift in how capital markets view the multifamily opportunity,” said Samrra CEO Myles Kritzinger. 

In January, the Centre for Affordable Housing Finance in Africa (CAHF) noted that some investors remain cautious about residential property, associating it with high risk, low returns, and unstable tenancy. However, its research confirmed the sector’s resilience, stability, and strong potential for long-term growth and value creation.

The association, whose members include Ocdotec, Africrest and Alley Roads, said the bank’s involvement highlights growing institutional interest and confidence in rental housing as a scalable, resilient asset class.

The association has more than 75,000 units and over R40bn in assets represented across its membership base of institutional landlords who own and manage large-scale multifamily rental properties.

Recent data from the association shows that its members began the year with average occupancies above 95%, rental collections exceeding 98%, and bad debts below 1%.

Kritzinger noted that the endorsement of the asset class affirms the value Samrra is building by promoting transparency, supporting benchmarked data, and fostering a community of aligned stakeholders.

“Standard Bank is proud to join Samrra and support the growth of SA’s multifamily rental sector. We believe this asset class plays a vital role in addressing housing needs while offering long-term investment stability,” said head of real estate finance at Standard Bank Marlene Pillay.

Head of commercial property finance at Absa Amelia Dieperink, said that despite challenges such as service delivery issues and economic pressure, developers remain committed to delivering quality, well-managed housing. She added that the multifamily model had proved to be low-risk and resilient when run by strong operators.

“As investor appetite grows, the focus shifts to scalability. With institutions like the PIC investing and Absa providing finance, increasing the delivery of quality housing is key. Unlocking scale will support a residential-focused real estate investment trust (Reit), improve capital access and offer new opportunities for inclusive, impact-driven growth,” Dieperink said.

majavun@businesslive.co.za