Are multifamily properties the future of the residential rental sector?
According to the South African Multifamily Residential Rental Association (SAMRRA), its members manage more than 75 000 rental units nationally.
And that number could soon increase thanks to high-profile new backing from Standard Bank, which has joined SAMRRA as its first member from the banking sector. According to SAMRRA CEO Myles Kritzinger, it’s a key endorsement – and a great sign for future investment.
“The banking sector is central to unlocking the next phase of residential growth. Beyond capital, banks offer strategic reach, from financing new developments to backing sustainable innovation and affordability models.”
A long path ahead
The multifamily sector could grow quickly in South Africa, just as it has done in other markets including the United States and the United Kingdom. The developments may be very attractive for investors: according to SAMMRA’s stats, average occupancy in developments is over 95% and average rental collections are over 98%. Rents are also rising quickly across the residential rental sector, reaching 5.6% year on year in Q1 2025.
And for tenants, professionally managed multifamily housing can provide security and amenities that single-family homes often don’t.
But for now, multifamily developments still only make up a small slice of the rental market. According to Statistics SA, there are around 4.5 million households in the residential rental sector, meaning that the 75 000 multifamily rental units operated by SAMRRA members are a drop in the ocean.
And the high cost of multifamily development may also limit investment in the sector to deep-pocketed institutions, not individual landlords.
However, the growth of multifamily rentals could be an opportunity for rental agents. If part of the appeal to tenants is convenience and service, then expert agents are well placed to deliver the seamless rental experience they need.
