The news is out! SA REITs soar 46% year to date, outpacing every major global market. South African REITs have surged 46% YTD, outperforming the US, UK, Europe, and Australia. Discover why this is a structural shift, not a spike, and what it means for investors in 2026. This is excellent news for real estate across the board in South Africa.
But first, what is a REIT?
REIT is a Real Estate Investment Trust (REIT), a company that earns income from owning, managing, or developing properties that generate rental income. Instead of buying property directly, investors can buy shares in a REIT and earn a portion of the income from the properties in the portfolio. In South Africa, REITs receive special tax benefits and are listed on the Johannesburg Stock Exchange (JSE), which makes it easy for anyone to invest in property through the stock market. REITs offer advantages such as regular income through dividends, easy access to property assets, diversification, and the ability to buy or sell shares whenever you choose. Investors can access REITs by buying shares directly on the JSE, investing in property unit trusts, or using property index tracker funds. A financial advisor or bank can help investors choose the best option for their needs. REITs own different types of properties, including shopping malls, offices, residential buildings, warehouses, industrial estates, hotels, and more. Some REITs specialise in one type of property, while others own a mix.
South Africa introduced the REIT structure on 1 April 2013. Before this, similar investment options existed, such as Property Unit Trusts (PUTs) and Property Loan Stock (PLS) companies. New tax rules and JSE listing requirements were introduced to formalise the REIT framework. As of 1 May 2013, PUTs automatically became Trust REITs, while PLS companies could choose to adopt the REIT structure if they met the requirements. Unlisted PLS companies did not qualify. REITs are regulated by the JSE listing requirements and the Companies Act. They can be
managed internally or externally, as long as they comply with the regulations. Many South African REITs invest in properties overseas. However, they may only invest in countries with a specific minimum credit rating, such as Baa2 or higher (Moody’s) or BBB or higher (Standard Poor’s or Fitch). If more than one agency rates the country, the lower rating applies.
To qualify as a South African REIT, the company must be a South African tax resident, be listed as a Company REIT or as part of a collective investment property structure, and meet the listing requirements set by the Financial Sector Conduct Authority (FSCA). Overall, this is excellent news for South Africa and the forecasts for 2026.
