SAMRRA celebrates Octodec’s inclusion in FTSE/JSE

The South African Multifamily Residential Rental Association (SAMRRA) has welcomed the inclusion of Octodec Investments to the FTSE/JSE All Property Index (ALPI) and the SA REIT Index as affirmation of the growing relevance of multifamily residential rental property as a core real estate asset class.

Octodec's inclusion, effective 23 March 2026, brings greater attention to the company, particularly from larger institutional investors, paving the way for increased demand for its shares, specifically from index-tracking funds and institutional portfolios that may previously have been precluded from taking off-benchmark positions.

For SAMRRA, which drives transparent value promotion for the multifamily rental housing asset class, the development carries special significance.

Octodec, under its City Property brand, holds the second largest residential property portfolio listed on the JSE. Within its R11.3 billion diversified portfolio, residential generates 35% of rental income across some 9,300 units. The company has been a pioneer in multifamily residential investment for decades, completing its first conversion of an office building into residential units in the Tshwane CBD as early as 1998, and is a long-standing advocate for multifamily housing in South Africa.

It joins SA Corporate Real Estate to become the second REIT with a substantial core multifamily residential holding to feature in the benchmark indices. Together, these two listed entities represent a meaningful and growing concentration of institutionally owned, professionally managed rental housing within South Africa's benchmark property indices.

For institutional investors, index inclusion of multifamily-weighted REITs resolves a longstanding structural challenge: the ability to gain greater benchmark-tracked exposure to multifamily residential rental income at scale. As the ALPI increasingly reflects the composition of South Africa's real estate economy, including its significant and growing residential rental component, portfolio managers, pension funds and specialist property funds are empowered to make considered, data-driven allocations to this sector.

Palesa Mkhize, CEO of SAMRRA

Jeffrey Wapnick, MD of Octodec Investments

A landmark moment for the multifamily rental asset class

"When the JSE's most important property benchmarks include REITs with major multifamily residential holdings, the message to the investment community is clear: this is a recognised, measurable and institutionally credible asset class. That recognition accelerates capital formation, deepens liquidity and elevates residential rental from a niche consideration to a core allocation,” says Palesa Mkhize, CEO of SAMRRA.

The presence of both Octodec and SA Corporate in the ALPI (33 counters) and the SA REIT Index (18 counters) marks a milestone for multifamily residential rental as an investable, benchmarked asset class in South Africa.

“Octodec’s inclusion in these indices marks an important milestone not only for our business. For many years, we have held a strong conviction in the long-term fundamentals of well-located, professionally managed residential rental housing, particularly in urban nodes where demand remains deep and resilient. This recognition reflects the growing institutional acceptance of multifamily residential as a core, scalable and investable asset class. It also enhances our ability to attract a broader base of institutional capital, supporting our strategy to continue investing in and improving affordable, quality housing in South Africa’s inner cities,” says Jeffrey Wapnick, MD of Octodec Investments.

A sector defined by resilience, transparency and increasing scale

The JSE's property indices play a key role in how listed property performance is measured, compared and communicated across the market. Inclusion in these widely tracked indices provides companies, and the property sectors they invest in, with enhanced visibility among domestic and international investors.

It also builds on SAMRRA’s ongoing work to expand valuable relevant and transparent sector market intelligence. The association’s initiative with Rode & Associates has established a quarterly performance tracking dataset to provide the credible, consistent data that underpins investment confidence. Currently covering approximately 60,000 residential units across both listed and privately held portfolios of SAMRRA members, it is the most comprehensive of its kind in South Africa.

The index developments come as the multifamily sector continues to demonstrate the operational, financial and transparency characteristics that drive institutional confidence.

The Rode data shows that vacancy rates across SAMRRA members' portfolios have remained consistently above 95% occupancy across the three quarters tracked since August 2025, levels notably stronger than those recorded in non-SAMRRA apartment stock, reflecting the appeal of modern units, integrated amenities and professional management. SAMRRA’s members collection rates are above 98%, with bad debts consistently below 1%, comparing favourably with virtually every other real estate sector.

National apartment rental growth averaged 3.6% in 2025, modestly above consumer inflation, while declining interest rates have supported capital values and contributed to overall sector stability.

A compelling capital story

Together with patently high tenant demand, these numbers position multifamily rentals as a cornerstone of South Africa’s modern housing solutions and an appealing option for institutional investment.

Three of South Africa's leading banks - Standard Bank, Absa and Nedbank CIB - are actively working alongside institutional multifamily rental investors at SAMRRA to build a stronger, more investable multifamily rental housing ecosystem.

This financial sector alignment, combined with the index recognition of major multifamily holders and quarterly performance tracking data creates a reinforcing cycle: greater data transparency, stronger institutional participation, deeper capital markets engagement and ultimately a more liquid and fairly priced asset class.

"SAMRRA will continue to champion this asset class, build the evidence base that supports investment and advocate for an environment that allows it to scale,” concludes Mkhize.