Why listed property?
The listed property market in South Africa allows us to invest in real estate trusts (REITS), which offer investors exposure to property-related opportunities on the Johannesburg Stock Exchange (JSE). Property loan companies and property unit trusts listed on the JSE have been converted into REITS since April 2013. South African REITS are diverse and have invested in offices, retail, industrial, self-storage as well as local and global residences and hotels.
The importance of listed property in your portfolio
If you want to diversify from traditional asset classes, you can have exposure to the property market without the large capital outlays associated with property investments. When you invest in Reits, you will receive an annual dividend payment and capital growth over time. Share prices could be volatile in the short term, therefore a long-term view beyond five years is required by investors to realize the capital growth opportunity.