Investing in South Africa’s real estate market could be the only sure bet for investors in the Africa’s second largest economy to beat inflation and cushion their portfolio against effects of a quickly depreciating local currency.

According to a report by Catalyst Fund Managers, the country’s listed property investments outperformed all other asset classes last year, making it the seventh time in 11 year it has done so.

This has cemented  real estate investments as South Africa’s preferred and strongest asset class. It is not wonder the country’s property funds have attracted global investor interest as reported by BDlive.

The report, released earlier this week by the investment firm, showed that listed property returned nearly 8 percent  last year compared to the 6.5 percent return from cash, 5.1 percent from equities and negative 3.93 percent from bonds.

This was however a drop from 2014’s performance, when real estate portfolios grew by an average 26.6 percent.

The South African rand lost more than a quarter of its value last year, dragged lower by falling metal prices on the international market, a slowdown in the chinese economy — SA’s largest export market — and a globally stronger dollar as the markets expected the US fed to hike interest rates.

The currency, which has already slipped 6 percent in the first few weeks of this year and touched a new record low of 17.19 to the dollar in mid January, is expected to decline further in months ahead as the US fed hikes rates and local factors continues to worsen.

But analysts are warning that property investments might not necessarily be the saviour in coming years as rand’s depreciation offsets any absolute gains made on the market, EPROP.co.za reported.

“Given the stagnant economy, weakened rand and further threats of a credit downgrade, the sector will work hard to sustain value in local markets while also looking for offshore assets with more attractive fundamentals and rand hedge benefits,” said Laurence Rapp, Chairman of the South African Real Estate Investment Trust (REIT) Association.

Compared to other sub-Saharan countries like Angola, Nigeria and Kenya whose property market delivers much higher returns, South Africa’s property market might not be so attractive but it’s the most diversified in terms of investment options and products.