Why Hines Is Betting on Development Again — and What It Signals for Property Markets
Bisnow · 23 August 2026
TL;DR
Global real estate giant Hines ($92B AUM) is pivoting back toward development after several years of prioritising acquisitions. Managing Partner Alfonso Munk says a "scarcity advantage" has emerged across multiple sectors — office, industrial, residential, and data centres — where supply has collapsed but demand has held steady. U.S. industrial development is down 60% from its 2022 peak; European residential construction sits at a 20-year low. With financing costs stabilising, construction cost growth slowing, and rents beginning to catch up, Hines sees development profits starting to "pencil" again. The firm is targeting residential in Europe (particularly Nordic markets), industrial redevelopment, and land-banking for data centres. Recent deals include four residential sites near Washington D.C. and a Paris office redevelopment.
Our take
For South African property professionals, the Hines pivot is a useful global bellwether — and the underlying dynamics rhyme closely with local conditions. SA has its own supply suppression story: residential construction activity has been constrained by elevated interest rates, rising materials costs, and load-shedding-related project delays. The SARB's rate-cutting cycle, now underway, is beginning to ease developer financing costs in much the same way Munk describes globally. Developers and buy-to-let investors in undersupplied urban nodes — think Cape Town's Southern Suburbs, Sandton's rental corridor, or Durban's beachfront — should take note: when supply stays low and demand holds, rental growth follows. That is already visible in Cape Town, where residential vacancy rates are near historic lows and asking rents have climbed steadily. The Hines thesis also reinforces the value of execution capability over pure capital allocation — a reminder that local developers with strong contractor relationships and planning expertise hold a genuine edge. For SA investors sitting on the sidelines, the global signal is clear: the window for attractive development entry points may not stay open indefinitely.