S.Africa sees increased activity & transactions in listed property space

South African investors have raised almost R9 billion this year in capital and equity for mergers and acquisitions in the local listed property sector, according to research from Independent Property Analyst, Keillen Ndlovu. This surge in activity signals a turning point for the property sector, with a notable increase in acquisitions and disposals compared to the previous year. One key trend driving this uptick in activity is the movement towards offshore acquisitions by local South African property companies. Companies like Vugle, Nepi Rockcastle, and Lighthouse have been expanding their portfolios in European markets such as Spain and Portugal, attracted by the higher yields and growth opportunities in these regions. The appeal of these overseas markets lies in the comparable yields to South Africa but with lower risk, making them an attractive investment destination for local companies seeking growth and diversification. The increase in interest and capital infusion in the listed property sector suggests a positive outlook for the property market in both domestic and international markets. With the prospect of declining interest rates and improving economies, investors are eyeing opportunities for expansion and strategic acquisitions in the year ahead. 2024 is shaping up to be a year of transformation and growth for the South African property sector. Local companies are also expected to continue making deals locally, with a focus on retail properties and value-added opportunities in malls like Table Bay and Mall of Africa. The retail sector is poised to benefit from increased consumer spending, boosted by rate cuts and improved economic conditions. Meanwhile, in the logistics sector, which includes industrial properties and warehousing, the outlook remains strong as companies look to capitalize on the growing retail market. Companies like Tech Alert and Amazon are expanding into the logistics sector, indicating a significant opportunity for development and growth. The office sector, however, continues to face challenges due to oversupply, with more disposals expected in the coming year. In terms of international expansion, South African companies are showing a preference for developed markets over the rest of the African continent. Challenges in liquidity and forex constraints in other African markets are prompting local companies to focus on investments in Europe for better growth prospects and stability. Foreign property companies are also showing interest in the South African market, particularly in impact investing and social housing projects. As the economy continues to recover and investment prospects improve, the housing market in South Africa presents significant opportunities for growth and development. Players like Calgary M3 are leveraging the demand for affordable housing to address the government's housing backlog, with potential for further expansion in the residential property sector. Overall, the property sector in South Africa is poised for a dynamic and transformative year ahead, with a focus on strategic acquisitions, diversification, and growth opportunities both locally and internationally.