Unique South African property company explains why it only invests in one province

Real Estate Investment Trust (REIT) Spear explained that the Western Cape has the lowest unemployment rate and the highest household income in South Africa.

This, the REIT said, makes the Western Cape property market the most defensive and scalable real estate investment case in South Africa.

These statements were made in Spear’s recent results presentation for the 2026 financial year, which was released on Monday, 18 May.

Spear stands out among South Africa’s other listed REITs for its exclusive focus on the Western Cape regional property market, branding itself “The Western Cape REIT”.

It is the only regionally focused REIT listed on the JSE that exclusively invests in the Western Cape.

The company’s 2026 results showed that it currently has a portfolio of 42 properties, all located in the Western Cape, valued at R7.18 billion.

These properties are spread across the province, with some in George, Paarl, Tygervalley, Wynberg, Newlands, Bellville, and, of course, Cape Town CBD.

In Spear’s 2026 results presentation, CEO Quintin Rossi reiterated the group’s mission to be the leading Western Cape-focused REIT.

“Our strategy is simple but deliberate: We own high-quality assets in well-located nodes that are economically robust,” he explained. 

“We allocate capital with precision and continue to build and operate a portfolio that can perform consistently through every type of property cycle.”

He explained why the group believes the Western Cape property market is the best investment case for South Africa, saying it offers the most defensive and scalable real estate investment in the country.

This, he said, is underpinned by governance certainty, semigration-driven demand, and sustained economic outperformance.

Rossi further pointed to three features of the Western Cape that he said are the reasons for Spear’s level of conviction in the province.

These three points are that the Western Cape accounts for a notable share of national GDP, has the lowest unemployment rate in the country, and boasts the highest household income levels in South Africa.

Western Cape shines

Firstly, Rossi said the Western Cape had a provincial GDP of R680.6 billion in 2025, meaning it accounted for around 14.3% of South Africa’s GDP.

“If you look at what the projections look like, by 2030, we should be a R1 trillion economy,” he said.

In addition, Rossi explained that the province not only has a large but also a diversified economy, which is not as reliant on the volatility of a commodity cycle.

This means the Western Cape stands in contrast to provinces that generate the majority of their GDP from cyclical sectors like mining and agriculture, making them heavily reliant on external factors, such as global commodity prices.

Secondly, Rossi said the Western Cape has the lowest unemployment rate in South Africa, at only 18.1%, compared to the national rate of around 31.4%.

Rossi described this as a clear indicator of stronger economic activity and job absorption, which, in turn, benefits the provincial property market.

“Anecdotally, over the last 5 years, 9 out of every 10 people employed in South Africa were employed within the Western Cape,” he said. 

“The Premier has a quote where he says that nothing stops a bullet like a job. And that really is the case.” 

He also pointed to the Western Cape’s labour force participation, which stands at 68.8%, far higher than the national level of 59.3%.

“This means that there are more people participating in the active economy from a jobs perspective, which puts more money in people’s pockets,” he said.

This, in turn, benefits the property market and Spear, as it means people have higher disposable income, “which they get to spend in our shopping centres, which they get to buy from our factories, and they get to rent office space from us”.

This leads into Rossi’s third point, which is that the Western Cape boasts the highest household income levels nationally.

The Western Cape has an average household income of R407,000 per annum, or just under R34,000 per month, which is 35% higher than in Gauteng and around 50% higher than the national average.

Rossi said the Western Cape’s growing population, which is currently at 7 million and projected to grow to 10 million by 2030, also creates opportunities for Spear.

For Spear, a growing population, boosted by the ongoing semigration trend, translates into increased demand for residential, retail, and industrial offerings, which the REIT can provide.

“We see the entire province, from an infrastructure perspective, as a great investment opportunity,” Rossi said.

“These are some of the data points as to why we seek to only invest in the Western Cape, just given the provincial underpinning, the governance certainty, and infrastructure investment.”

“So we’ll continue to do that, and we see the whole of the Western Cape as an investment opportunity for Spear, even Robben Island.”