The notion that real estate returns act as an inflation hedge in the long run is demonstrable.
Over the years, we have seen a surge in property development in Gaborone and surrounding areas. The new CBD has transformed the skyline of the city with new high-rise buildings, and the emergence of new modern one-stop shopping centres has been on an upward trajectory. In surrounding areas like Tlokweng and Mogoditshane, the development of multi-residential units has been on the rise as population migrates more into urban areas. The common factor for these commercial establishments is the chase for rental and capital returns. But the question we want to look at closely is how pension funds can participates in the property market and we explore in detail the various investment vehicles available, namely listed (public) property funds and non-listed (private) exposures.