South Africa’s exit from the grey list: a defining moment for real estate growth
South Africa’s removal from the Financial Action Task Force’s (FATF) “grey list” has been hailed as a defining moment for the country’s economy — and particularly for the property sector, which stands to benefit from renewed investor confidence and greater financial stability.
The Financial Intelligence Centre (FIC) described the delisting as the culmination of a “difficult but critical chapter” in strengthening the country’s financial integrity. “Lifting the mantle of the grey list does not mark the end of this endeavour but lays the foundation for the next phase as we draw lessons from this experience,” said Pieter Smit, acting director of the FIC.
“We commend the collective efforts by partners in government, the private sector and civil society who help in South Africa’s fight against financial crime. Lifting the mantle of the grey list does not mark the end of this endeavour but lays the foundation for the next phase as we draw lessons from this experience,” Smit said.
Confidence restored
For the real estate industry, the move signals the start of a new cycle of optimism and opportunity.
“South Africa’s removal from the FATF grey list marks a defining moment for our economy, and for real estate in particular. It’s a powerful signal to the world that South Africa is back on track — credible, compliant, and ready for renewed investment and growth.” – Bryan Biehler, CEO of Huizemark Property Group
Biehler believes the ripple effects will be far-reaching. “With greater investor confidence, improved financial stability, and the likelihood of lower borrowing costs, we can expect fresh momentum in the property market. This opens the door for more homebuyers to enter the market, for developers to reignite stalled projects, and for new business ventures to gain traction.”
He adds that this moment represents more than economic progress. “It’s proof of what we can accomplish as a country when we work together, government, business, and citizens, towards accountability and progress. The foundation for recovery has been laid; now it’s time to build on it.
At Huizemark, we see this as the start of a new chapter — one of optimism, confidence, and opportunity,” Biehler said. “Let’s use this moment to reignite growth, create jobs, and help more South Africans realise their property dreams.”
Reform paying off
Berry Everitt, CEO of the Chas Everitt International property group, noted that whether they realised it or not, all South Africans had been negatively affected since the country was placed on the “grey list” in February 2023.
“However, government and the business sector have worked hard to achieve the required improvements in areas such as beneficial ownership transparency, supervision of non-financial businesses and professions (including real estate agents) and legal and accounting trust frameworks,” Everitt said.
“And what they have achieved with the removal of SA from that list is an improved risk profile and increased investor confidence in our financial system and its institutions, which will also affect all South Africans. For a start, it will mean lower borrowing costs for the government, SOEs, municipalities and other entities, and possibly the opportunity to negotiate lower rates of interest on existing debts. This should make it easier to restore and even improve vital trade infrastructure like railways, harbours and roads.”
Everitt added that “getting off the list should also encourage more direct local and foreign investment in SA, not just in bonds and equities but in new businesses, especially now that the African Continental Free Trade Area (AfCFTA) agreement is starting to gain momentum. Companies around the world are looking for ways to access the opportunities inherent in that agreement and in growth markets across Africa. They are well aware that SA is one of the best gateways to those markets.”
Real estate rebound
“Both infrastructure projects and the establishment of new businesses will lead to much-needed job creation and significant new housing demand over time,” Everitt said. “But even before that, lower national debt will reduce the need for the government to raise corporate and personal taxes and help to improve housing affordability for the average household. We believe it will also improve consumer sentiment about the future of SA and are thus expecting the real estate market recovery to gather additional speed over the next few months.”
Turning to foreign purchasing, Everitt noted: “The delisting will result in international buyers seeing SA as a lower risk jurisdiction and improve the attractiveness of investment in local residential as well as commercial properties, which continue to offer exceptional value in global terms. International real estate transactions often involve cross-border capital, finance vehicles, trusts, and special purpose vehicles, and the delisting should reduce the costs of AML/CFT compliance while also improving access to finance.”
“Removal from the ‘grey list’ does not mean that all AML/CFT risks vanish overnight.” – Berry Everitt, CEO, Chas Everitt International property group
Vigilance still required
As a member of the Leading Real Estate Companies of the World® network, which spans more than 70 countries, we are acutely aware that real estate remains a high-risk sector globally for money laundering, since it is a high-value physical asset and often involves opaque ownership.”
“That is why it’s essential for both buyers and sellers not to ‘cut corners’ when it comes to real estate documentation, and to deal only with registered property practitioners who adhere to the highest standards of compliance with the Financial Intelligence Centre (FIC) measures, which have been implemented specifically to make our financial system resistant to abuse by criminal elements.”
“The FATF will be watching SA to see if it can sustain the improvements made over the past two years, and we all need to do our best to ensure that we don’t go back on the ‘grey list’, or we will all once again pay the price,” he concluded.