Just a few years ago, retail was one of the key investment sub-sectors in real estate both globally and within South Africa (SA). This situation has changed, with global investment in the sector declining from US$13.3 billion in 2016 to US$9.3 billion in 2018, while investment in retail real estate in South Africa declined from R7.2 billion in 2016 to R4.2 billion in 2018.

This report examines some of the key reasons for this decline in investment within South Africa and suggests that while the level of investment may remain subdued in the short term, retail certainly remains an attractive asset class with selected centres offering investors the potential of stable rental income and potential capital growth in the longer term.