Equally importantly , our focus on impact investment enables ordinary South Africans to enter the property market and stimulates inclusive , local economic growth . Job creation , small enterprise creation and access to opportunity are some of the micro-economic impacts we measure over and above our affordable housing outcomes .
AFFORDABLE HOUSING
Public sector budgets must be realigned to prioritise infill and well-located housing projects . Though these investments may require higher initial allocations , the alternative exacerbates urban sprawl which necessitates new infrastructure and services . These are often not paid for due to indigence , adding to an already considerable fiscal burden .
By contrast , in-city housing developments yield long-term benefits , including increased property values , enhanced service payments , and broader economic growth . The cost of in-city development is more than justified when considering the medium-term fiscal and economic impacts .
The role of private investment The challenge of affordable housing is not one that government can tackle alone . Private investment , particularly from micro- and medium-scale property developers , is essential . TUHF , with its 21-year track record , has demonstrated that it is possible to achieve significant scale in affordable rental housing . We provide inclusive development finance to property entrepreneurs in cities and townships , supporting urban densification and the economic benefits that come with it .
TUHF and its subsidiaries stand out as one of the few institutions willing to provide inclusive development finance to property entrepreneurs in inner-cities , in-cities and townships , achieving significant scale in affordable rental housing . Our model - if taken seriously as a national investment strategy aiming for 10,000 small-scale ( average 20-unit ) projects per year - is not only achievable but also crucial for addressing the affordable housing backlog .
We recognise that addressing urban sprawl requires tailored approaches , as each region presents distinct opportunities and challenges . Our ‘ feet-on-the-ground ’ strategy allows us to leverage local insights , ensuring our developments meet the unique needs of the communities we serve . In-depth , local market knowledge is a critical factor we consider when assessing potential financing partners and enhances our specialised approach to risk . We have found that local market knowledge and lived experience are often more reliable indicators of success for the entrepreneurs we finance , compared to traditional metrics . This hands-on approach increases our ability to make sound , well-informed business decisions .
Equally importantly , our focus on impact investment enables ordinary South Africans to enter the property market and stimulates inclusive , local economic growth . Job creation , small enterprise creation and access to opportunity are some of the micro-economic impacts we measure over and above our affordable housing outcomes .
52 REI MAGAZINE DECEMBER 2024 / JANUARY 2025