SA’s grey list exit sparks new confidence in property

• South Africa’s FATF delisting boosts investor confidence and lowers borrowing costs.
• Foreign buyers see SA property as lower-risk and better value.
• Improved governance and oversight fuel market recovery and new housing demand.

South Africa steps back Into the global financial mainstream

‍South Africa’s removal from the Financial Action Task Force (FATF) “grey list” marks a major turning point for the economy and for property investors. The move signals renewed international confidence in the country’s financial systems, lower perceived risk, and a smoother path for both business and property transactions.

Background: What the ‘Grey List’ aas all about

‍In February 2023, South Africa was placed on the FATF’s “grey list” for deficiencies in its anti–money laundering (AML) and counter-terror financing (CFT) systems. The designation placed the country under increased global scrutiny, making it harder and more expensive to access international finance and investment.

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“Whether they realised it or not, all South Africans were affected,” says Berry Everitt, CEO of the Chas Everitt International Property Group. “Being on that list raised our national risk profile, drove up borrowing costs, and dampened investor confidence.”

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Business and government worked to fix the problem

‍Over the past 18 months, South Africa’s government, regulators, and private sector collaborated to overhaul compliance frameworks, improve transparency around beneficial ownership, and strengthen supervision of non-financial businesses including real estate agencies, law firms, and accounting practices.

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“These collective efforts,” says Everitt, “have restored trust in South Africa’s financial system and demonstrated that we can meet international standards when business and government pull in the same direction.”

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The positive ripple effect

‍The delisting immediately improves South Africa’s sovereign risk rating, meaning the country and its major entities can borrow at lower rates. That, in turn, frees up funds for infrastructure upgrades across rail, ports, and logistics, which are vital to restoring economic growth and trade efficiency.

“Getting off the list will attract new local and foreign investment,” Everitt explains. “It will not just benefit equities and bonds, but also the real economy - new businesses, factories, and property developments. The AfCFTA (African Continental Free Trade Area) is gaining momentum, and SA remains one of the most credible gateways into African markets.”

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Impact on Real Estate: Confidence rebuilds fast

For property, the implications are immediate and powerful. Lower debt costs and stronger confidence translate to renewed housing demand, improved affordability, and rising buyer sentiment.

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“We expect the real estate market recovery to gather speed,” says Everitt. “Lower national debt means less pressure for future tax hikes, which will directly benefit households and improve affordability.”

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For foreign buyers, South Africa now looks far more attractive. “The delisting reduces perceived jurisdictional risk,” says Everitt.

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‍“International investors can now transact more efficiently and with lower compliance costs. Developers planning large lifestyle or mixed-use estates should also find it easier to structure foreign capital inflows.”

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Compliance still matters

‍Everitt cautions that delisting doesn’t mean risk disappears. “Real estate remains globally vulnerable to money laundering, given its high value and complex ownership structures,” he says.

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“It’s vital for buyers and sellers to deal only with registered property practitioners who comply with Financial Intelligence Centre (FIC) regulations.”

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Way Forward

South Africa’s challenge now is to maintain this progress and stay off the grey list. Sustained transparency, regulatory discipline, and industry-wide compliance will cement the gains.

As Everitt concludes:

“We’ve earned our way back into the global fold. If we stay the course - business, government, and property professionals together with South Africa’s real estate market could be one of the biggest winners of this new chapter.”

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