MSCI 2025 results commentary
Commentary by Professor Francois Viruly's, Chief Economist at Datazone on the MSCI 2025 results
The MSCI Inc. has released property returns for 2025, strengthening our view that the South African property market is moving up the property cycle. Key highlights:
Total returns for the SA property market (largely commercial) continue to rise, from 8.9% in 2023 to 11.9% in 2024 and 12.0% in 2025, exceeding the 3-year, 5-year and 10-year averages.
Capital growth recorded 3.3% in 2025, accelerating total returns.
The industrial sector delivered a return of 13.4%, outperforming the market, though slightly lower than the 15.0% recorded in 2024. The office sector shows strengthening returns, from 9.4% in 2024 to 9.7% in 2025, while retail improved from 12.0% in 2024 to 12.7% in 2025.
Township and rural retail shopping centres are outperforming the broader market, with returns of approximately 17%.
The Cape Town property market delivered a record total return of 15.8%, significantly ahead of Johannesburg at 9.3%.
Transaction activity is growing, with private investors absorbing assets being disposed of by the REIT sector.