The South African Multifamily Residential Rental Association (SAMRRA) has announced that Absa has joined as its newest member becoming the second of South Africa’s big banks to formally align with the country’s multifamily rental housing representative body.
Palesa Mkhize, CEO of SAMRRA
“This institutional partnership signals that multifamily housing is moving from emerging opportunity to mainstream investment,” says Palesa Mkhize, CEO of SAMRRA. “We are thrilled to welcome Absa as a member. With two of South Africa’s largest banks now at the table, we’re seeing the sector’s financial participation begin to align with its physical and operational maturity.”
Absa’s membership represents a significant vote of confidence in a sector that now spans over 75,000 purpose-built rental units and more than R40bn in assets under SAMRRA’s membership. As the multifamily model continues to deliver consistent occupancy above 95%, collections above 98%, and bad debt below 1%, institutional interest is rising across the board, from developers and asset managers to lenders and capital markets.
“We see the multifamily rental sector as central to the future of housing in South Africa. It combines social relevance with investment resilience, which is exactly the kind of long-term value we seek to support,” says Somaya Joshua, managing executive: Commercial Property Finance at Absa Corporate and Investment Banking. “With this partnership, we are committing to continue providing innovative financing solutions and strategic insights to the multifamily sector.”
Somaya Joshua, managing executive, Commercial Property Finance at Absa Corporate and Investment Banking
For SAMRRA, Absa’s entry reinforces the sector’s growing ecosystem of committed, long-term players. It also speaks to the association’s broader mission: to foster collaboration and improve data transparency across South Africa’s multifamily rental landscape.
“Banks are crucial partners in this. Beyond the finance they provide, they have a strategic role in enabling development, supporting affordability and reinforcing investability,” Mkhize adds.
SAMRRA sees a rising tide of institutional investment in multifamily rental housing where quality of housing and management, investment performance and community impact are integrated outcomes.
“That’s how we build the kind of housing sector South Africa needs,” Mkhize concludes. “Absa’s involvement with SAMRRA is a call to the wider investment community: the future of housing is about more than simply scale; it’s about alignment. Alignment between capital and purpose, risk and reward, and between the partners who will shape South Africa’s cities for generations to come.”
