Listed property still has room to run, say fund managers — here's what's driving the optimism

Our take

For South African investors — particularly those with buy-to-let exposure or direct property holdings — the listed property sector offers a useful barometer of where bricks-and-mortar fundamentals are heading. When seasoned fund managers at firms like Merchant West and Sesfikile start talking about teen-percentage total returns, it signals that the post-COVID, post-load-shedding recovery in commercial and retail property is gaining traction, not just stabilising. For landlords and property investors, this matters in two ways. First, improving REIT fundamentals typically reflect the same forces lifting direct property — rising occupancy, firmer rentals, and tenants with more spending capacity as interest rates ease. Second, listed property gives smaller investors rand-denominated exposure to diversified portfolios (offices, retail, logistics) without the illiquidity of a single asset. The caveat: "potential" returns in the teens are not guaranteed, and South African REITs remain sensitive to load-shedding disruptions, municipal service failures, and offshore portfolio drag. Buyers and landlords should treat this as a positive directional signal — not a reason to overextend. Speak to a registered financial adviser before repositioning.