Leading voices in real estate, policy, and investment at the Reside Summit 2025 issued a strong call to direct capital into alternative residential sectors, driving sustainable growth and inclusivity in South Africa’s urban landscape.
The second day of the summit, held at the Sandton Convention Centre on 10 July, consequently saw a call from established financiers and institutional investors to allocate funding towards real estate developments focusing on multifamily rental housing, retirement living, and student accommodation.
Specifically, demographic shifts and economic pressures are driving demand for affordable homes, purpose-built student accommodation, and dignified retirement living. Speakers at the Reside Summit 2025 emphasised that these sectors offer both social impact and steady returns for investors willing to look beyond traditional real estate classes.
“If we want cities that work for everyone, we need capital that moves with purpose. Alternative residential sectors like student housing and retirement living, aren’t fringe—they’re foundational to inclusive urban growth. We thank all our partners for showing up with bold ideas and real commitment. Together, by reshaping spaces, we’re reshaping futures.” ~ Debbie Tagg, Chairperson of the Reside Summit.
DBSA Backs Investment in Alternative Residential Sectors
For instance, the Development Bank of Southern Africa (DBSA) is one of the major financiers that invests in alternative real estate markets, particularly when these investments align with its core mandate of addressing South Africa’s most pressing social and developmental needs. Palesa Ryan reaffirmed the DBSA’s commitment to supporting real estate developments, particularly those that address the country’s most urgent housing needs.
“The DBSA stands ready to finance real estate developments across South Africa, but our mandate is clear: our primary focus is on affordable housing. We believe that by channelling capital into this sector, we can drive both social and economic transformation.”
~ Palesa Ryan, Head for Social, Health, and Education, DBSA.
Furthermore, she emphasised that the DBSA is actively seeking partnerships with developers, municipalities, and other financiers to unlock new affordable housing projects.
“Affordable housing is not just a social imperative; rather, it’s a resilient asset class that can deliver stable, long-term returns. We are eager to work with stakeholders who share our vision for inclusive, sustainable urban growth.”
~ Palesa Ryan, Head for Social, Health, and Education, DBSA.
Retirement Living: A Key Alternative Residential Sector
Under the theme “Transforming Spaces, Enriching Lives”, this year’s Reside Summit also shone a spotlight on retirement living and how this housing option integrates health, wealth, and dignity. As South Africa’s population ages, retirement living has correspondingly emerged as a sector that requires attention.
“Retirement living in South Africa is at a crossroads. We must go beyond simply providing accommodation and focus on integrated communities that offer healthcare, social engagement and a sense of dignity for our seniors.”
~ Tim Gibson, Director, Herdsmore.
Herdsmore, under Gibson’s leadership, is pioneering the development and management of modern retirement communities that blend independent living with access to healthcare, wellness programmes, and community activities. They root their approach in international best practices, tailoring it to South Africa’s unique demographic and cultural context.
“We see enormous potential for impact and returns in this space. By working together, developers, investors, and government can create environments where older South Africans thrive, not just live.”
~ Tim Gibson, Director, Herdsmore.
Student Accommodation
Another key point at the summit was the acute shortage of quality student accommodation. Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA), estimated that South Africa faces a shortfall of 300,000 student beds. Leading private providers established PSHA in 2019, and the association now represents 80,000 beds nationwide, many of which meet or exceed government standards.
“Student accommodation is a very important part of our youth’s future and the higher education system. It’s not just about providing beds; it’s about ensuring the dignity of students, supporting their futures and enabling their success.”
~ Kagisho Mamabolo, CEO, Private Student Housing Association (PSHA).
Policy Challenges
While there is strong interest from private sector investors in supporting new student accommodation developments, Mamabolo noted that current government policy is, however, making these investments increasingly challenging to be viable.
For example, in 2023, the National Student Financial Aid Scheme (NSFAS) introduced a cap limiting the maximum amount NSFAS pays for a student’s accommodation to R52,000 per year. The intention was to control costs and standardise spending, but, as Mamabolo pointed out, this cap is too low for providers to cover the real costs of building and running quality, compliant student housing.
Research by PSHA indicates that the actual cost of providing accommodation that meets government norms and standards sustainably is closer to R66,000 per bed per year. The cap, therefore, renders it financially unfeasible for private providers to invest in or maintain student housing, thereby threatening the sector’s sustainability and limiting students’ access to safe and dignified accommodation.
As a result, PSHA has called for the removal of the NSFAS cap and for funding to reflect better the actual costs of delivering quality student housing, so that providers can continue to meet the needs of South Africa’s growing student population.
In conclusion, as day two of the Reside Summit 2025 came to a close, the message was clear: South Africa’s urban future depends on bold, coordinated investment that includes alternative residential sectors. By directing capital into affordable housing, retirement living, and student accommodation, stakeholders can achieve both sought-after sustainable returns and social impact, reshaping cities and enriching lives for generations to come.