Octodec index entry boosts rental housing sector

• Octodec’s inclusion in key JSE property indices strengthens multifamily residential rentals as a recognised institutional asset class.
• SAMRRA says the milestone deepens investor confidence, liquidity and capital flows into professionally managed rental housing.
• Strong occupancy, low bad debts and rising institutional participation continue driving multifamily residential growth in South Africa.

South Africa’s multifamily residential rental sector has reached a major turning point following the inclusion of Octodec Investments in the FTSE/JSE All Property Index (ALPI) and SA REIT Index — a move widely seen as a significant milestone for the country’s growing institutional rental housing market.

The inclusion, effective from 23 March 2026, has been welcomed by the South African Multifamily Residential Rental Association as a powerful validation of multifamily residential property as a mainstream, investable real estate asset class.

SAMRRA represents South Africa’s institutionally owned and professionally managed rental housing sector, with members collectively managing more than 75,000 residential units valued at over R72 billion.

Under its City Property brand, Octodec holds one of the country’s largest listed residential portfolios, with approximately 9,300 residential units contributing 35% of rental income across its R11.3 billion diversified portfolio.

A landmark moment for multifamily rentals

‍The development positions multifamily residential rentals more firmly within South Africa’s institutional investment landscape.

According to Palesa Mkhize, benchmark index inclusion sends a strong message to the investment market.

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“When the JSE’s most important property benchmarks include REITs with major multifamily residential holdings, the message to the investment community is clear: this is a recognised, measurable and institutionally credible asset class,” says Mkhize.

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Octodec now joins SA Corporate Real Estate as one of the few major REITs with substantial multifamily residential exposure represented in South Africa’s benchmark property indices.

For institutional investors, pension funds and index-tracking portfolios, this creates greater ability to access professionally managed residential rental exposure at scale through benchmark-aligned investment strategies.

A sector defined by resilience and scale

‍The multifamily residential sector continues outperforming many traditional real estate categories through stable occupancy levels, strong collections and resilient rental demand.

Data tracked through SAMRRA’s partnership with Rode & Associates shows occupancy levels across member portfolios consistently exceeding 95% since August 2025.

Collection rates among SAMRRA members remain above 98%, while bad debts continue tracking below 1%, metrics that compare favourably with most other property sectors.

The sector is also benefiting from:

• Strong urban rental demand
• Modern professionally managed stock
• Integrated lifestyle amenities
• Declining interest rates
• Stable rental growth above inflation

National apartment rental growth averaged 3.6% during 2025, further reinforcing the sector’s defensive investment characteristics.

A compelling capital story

‍The growing institutionalisation of residential rental housing is rapidly reshaping South Africa’s property investment landscape.

Major financial institutions including Standard Bank, Absa and Nedbank CIB are actively supporting the sector alongside institutional multifamily investors.

Combined with stronger data transparency, benchmark index recognition and growing institutional participation, the multifamily rental sector is increasingly being viewed as a scalable, liquid and investable long-term asset class.

Importantly, the sector also addresses one of South Africa’s most pressing structural needs, professionally managed urban rental housing at scale.

Institutional confidence continues building

‍For SAMRRA, Octodec’s inclusion in the FTSE/JSE indices represents far more than a technical market adjustment.

It signals the growing maturity, credibility and investability of multifamily residential property in South Africa.

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“This recognition accelerates capital formation, deepens liquidity and elevates residential rental from a niche consideration to a core allocation,” says Mkhize.

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As institutional capital increasingly searches for resilient, income-producing and defensive real estate opportunities, multifamily residential rentals are emerging as one of the country’s strongest long-term property investment stories.

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