Nedbank Corporate and Investment Banking and International Housing Solutions have joined the South African Multifamily Residential Rental Association (Samrra), making Nedbank CIB the third major bank to work alongside institutional multifamily investors to build a more investable rental housing ecosystem. Executives say affordable housing is shifting from a fragmented space to a strategic asset class driven by strong demand.
By Marleny Arnoldi – Engineering News
Samrra provides a platform for investors and developers to collaborate, broaden financial tools and unlock new delivery models. Sector leaders note that institutional capital is increasing, not only through debt but also equity—supported by a push for leadership, innovation and partnerships. Banks argue affordability should include lower total living costs through proximity to jobs and better on-site services, with growing emphasis on social cohesion and environmental performance.
Key constraints remain slow planning approvals and weak enabling infrastructure, although reforms under Operation Vulindlela Phase 2 aim to improve municipal delivery. Policy moves such as Cape Town’s plan to increase residential density without rezoning are seen as enabling steps.
On the outlook, improved consumer spend from easing inflation and lower interest rates could support residential investment, with wage growth currently outpacing price rises. Economists expect modest near-term inflation pressures from food and electricity, partly offset by lower fuel prices and a firmer rand, with further rate cuts a potential tailwind.
