Green Buildings Outperform Again in 2024 Property Index

Key Takeaways

• Green-certified offices beat non-certified assets by 120bps in returns
• Green retail properties saw a 13.2% return - 130bps above peers
• Lower vacancies and higher income continue to drive outperformance

The 2024 MSCI South Africa Green Annual Property Index, released in April 2025, has reaffirmed the compelling investment case for green-certified real estate. Produced in collaboration with the Green Building Council South Africa (GBCSA) and sponsored by Growthpoint Properties, the index once again shows that sustainability and strong returns go hand in hand.

This year’s index covered 242 Prime and A-grade office buildings valued at R54.7 billion, including 122 green-certified assets and expanded to include 33 certified retail properties, signalling growing adoption across the sector.

2024 Highlights: Green Properties Lead the Way

• Green office assets delivered a total return of 10.1%, outperforming non-certified equivalents by 120 basis points (bps).
• Certified retail properties returned 13.2%, 130bps ahead of non-certified assets, buoyed by stronger net income and lower capitalisation rates.
• Green offices achieved 34% higher gross income per m², lower vacancies (11.1% vs. 14.8%), and a lower cost-to-income ratio (39% vs. 46%).

‍

Expert Insights

Timothy Irvine, Head of Asset Management: Offices, Growthpoint

‍

"The index reaffirms the investment edge of green-certified real estate. The consistent outperformance reflects investor and occupier demand for sustainable, efficient buildings."

‍

Georgina Smit, Head of Technical, GBCSA

‍

"Expanding into retail is a major step. It shows market appetite for green across asset classes and supports our mission to mainstream sustainable building"

‍

Eileen Andrew, Vice President, MSCI South Africa

‍

"After nine years of consistent outperformance, the data is clear -green-certified properties deliver higher returns. The next frontier is tracking how they mitigate climate risk."

‍

Lisa Reynolds, CEO, GBCSA

‍

"This index answers the question many still ask: ‘Why should I go green?’ Today, the better question is, ‘Why wouldn't you?’"

‍

The Way Forward: Data-Driven Climate Action

As green buildings deliver stronger capital growth, lower vacancy rates, and better operational performance, the case for certification continues to strengthen.

With Growthpoint leading the way through one of the country’s largest green-certified portfolios, sustainability is proving to be more than a compliance metric, it’s a performance driver.

Engelbert Binedell, COO, Growthpoint Properties

‍

"We use MSCI and GBCSA data to benchmark performance, refine net-zero goals, and meet rising ESG expectations. It's core to our strategy for long-term resilience."

‍

Looking ahead, the focus will turn to how certified properties can mitigate climate risk and support net-zero transitions. As this index evolves, so too will the tools and data that drive a smarter, greener, and more profitable real estate sector.

‍