The latest Property Sector Market Size report by the Property Sector Charter Council research report shows that the sector in South Africa is estimated to be valued at R5.8-trillion. Within- the sector, fewer than 10% of Real Estate Investment Trusts (REITs) are black originated funds.
According to the South African Institute for Black Property Owners (SAIBPP), it is of paramount importance to prioritise the inclusive growth and radical transformation of the property sector and non agri-land while ensuring security of tenure, delivering on the social priorities and creating an opportunity for the average South African to be an active participant in the mainstream economy through title deed ownership.
The total South African land mass equates to 123-million hectares. By 2013, land reform/ restitution programmes had seen only 7.95-million hectares transferred to black people. 47% of land is privately owned by non-black owners versus 22% which is currently classified as “black-owned” which includes communal and private ownership. 21% is owned by the state. The value of urban zoned land (i.e. excluding rural and agricultural) equates to R520-billion split between municipalities, national government, private owners and commercial owners.
“Although there has been some success in, for instance, delivering social housing and issuing title deeds, the demand far outwieighs the supply and support from the private sector is much-needed,” said Vuyiswa Mutshekwane, CEO of SAIBPP. “Social cohesion, an alignment to the financial services sector and support from the private property sector is required to achieve inclusive growth radical transformation and ensure that all policies are underpinned by sound economic principles and skills. At this year’s convention, we will be taking a closer look a inclusive growth radical economic transformation within the property sector and focus on what the national policy should achieve with respect to this,” she concluded.
Report reveals black people still largely excluded from property sector value chain