The article highlights the underrepresentation of multifamily residential properties in South African pension fund portfolios despite their resilience and returns.

It notes that institutional portfolios are heavily weighted towards retail and industrial assets, with multifamily residential accounting for only 6% of the R410 billion property allocation.

Experts argue that multifamily residential offers stable income streams, with net income yields of 9% or better linked to inflation, and has proven resilience during crises like the Covid-19 pandemic.The sector's growth potential is underscored by a housing deficit of over three million homes, with demand outpacing supply.

Institutional operators are expanding portfolios, and the asset class is becoming increasingly attractive for long-term investment due to its alignment with pension liabilities.

The piece calls for pension funds to allocate more capital to this sector, emphasizing its role in addressing national housing challenges while delivering commercial returns.