Commercial property boom in South Africa
Commercial property in South Africa is rebounding strongly, offering high yields, longer leases, and low vacancies, but experts caution that successful investing involves weighing a number of factors.
The inflows compared with $3.38 billion recorded during the same period in 2024, and $5.09 billion, or a 10.9% rise, in the fourth quarter of last year, the National Bureau of Statistics (NBS) said.
Portfolio investments accounted for nearly 80% of the inflows, rising to $4 billion, reflecting strong foreign investor interest in short-term returns, even as foreign direct investment lagged at 2.24% of the total.
The United Kingdom emerged as the top source of capital, contributing $3.68 billion, followed by South Africa and Mauritius, as portfolio investors piled into the country's banking sector. Lagos, the commercial capital, and Abuja captured more than 99% of total inflows.
Nigeria's central bank has allowed the naira currency to freely trade in a bid to boost forex inflows, as part of President Bola Tinubu's reforms which also included ending petrol (gasoline) and electricity subsidies and enacting new tax laws.
The central bank has kept its key interest rate unchanged after three consecutive meetings this year, pledging to maintain its current stance until inflation risks recede and to attract portfolio investors hungry for yields.
