Please Wait.....
Report
South Africa Residential Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029
Market Report I 2024-02-17 I 150 Pages I Mordor Intelligence
The South Africa Residential Real Estate Market size is estimated at USD 19.89 billion in 2024, and is expected to reach USD 32.71 billion by 2029, growing at a CAGR of 10.46% during the forecast period (2024-2029).
Despite the uncertainties surrounding COVID-19 and the subsequent lockdowns, the residential property market has become one of South Africa's more robust sectors.
Key Highlights
-The country's demographics show that 15.6 million South Africans are aged 20 to 34. With the right economic opportunities, many first-time buyers are entering the market. Others who already have a home are discovering property's potential to create wealth. The good news for new investors is that interest rates are favourable, and the current slow rental growth will likely improve over time. Several factors have fuelled the housing market, like low-interest rates, the rise of working-from-home trends, and the appeal of more space in the event of lockdowns are among them.
-The slow recovery in the labour market, combined with rising interest rates, suggests a less supportive medium-term environment for home-buying activity. However, if sustained, the ongoing shifts in housing needs, which have lent support to homeownership, could mitigate the impact. Residential real estate in South Africa can cost up to 1.6 million South African rands on average, depending on location. One of South Africa's three capital cities and the second-largest metropolis in the nation after Johannesburg, Cape Town is located in the West Cape province.
-Even though housing prices in Johannesburg were reduced, they were still above the one million South African rand threshold. Even though costs vary greatly based on location and property type, the majority of residential property deals cost over 1.2 million South African rands. This was a little bit more than what was typical for mortgage loans to first-time buyers. In terms of the rental market, Mpumalanga saw the greatest growth in rents, but the Western Cape saw the highest rents.
South Africa Real Estate Market Trends
Increasing Demand for Sectional Title Living in South Africa
The purchase of freehold homes by South Africans has been steadily decreasing, with buyers opting for sectional title and estate homes instead. Increased security, affordability, and the communal lifestyle are attractive aspects when considering sectional title properties. A sectional title unit is a property in an undivided share of common property. These units are called townhouses, flats or apartments, and duet houses. Estate purchases remained consistent, with the growth of sectional title property of up to 5%.
An intriguing case study for the sectional title market is the emergence of Midrand, one of the fastest-growing growth centres in the nation. While Midrand's population has risen since 2000, the area has experienced a significant 550% increase in the number of sectional title homes, according to residential property analysis firm Lightstone. It illustrates how widespread this type of property ownership has become. Additionally, many people want to enter the real estate market while still having access to homes. Sectional title homes are a good entry point into the residential real estate market for first-time homebuyers because of their affordability.
Rental Prices Growth in South African Provinces
The South African housing market has been expanding ever since the market collapse in 2008 and 2009. The increase in home prices has stayed constant throughout the coronavirus pandemic while being lower than levels seen before the market meltdown. Rental growth has lagged behind the home price increase by less than 1% as of the fourth quarter of 2021.
Lower-than-normal demand in 2021 has fueled the high vacancies and low escalations across South Africa. Historically, the rental demand increased during tough economic times, which is not the case in the present scenario. The data show that few people are entering the rental market, and most of those rents are for less than ZAR 7,000 (USD 465.24) per month. Most provinces saw low rental growth and a deterioration in the average tenant's financial situation from Q2 2020 to Q2 2021. Below-inflation income growth has made it increasingly difficult to keep up with debt and other costs.
The average rent in Western Cape surpassed the ZAR 9,185 (USD 598.21) mark in Q2 2021, making it the most expensive province to live in. This rent has an average price differential of nearly ZAR 1,000 (USD 65.13) compared to the second-most costly region. In Gauteng, the average rent reached ZAR 8,292 (USD 540.05) for the first time in 2021, 4.84% more than the 2020 rent and the third-highest growth rate in the country for the quarter. While this rate was lower than the previous year, it was the province's first increase in quarterly growth in two years, implying the beginning of a recovering rental market in the area.
South Africa Real Estate Industry Overview
The South African residential real estate market is fragmented, with various indigenous players. Most real estate companies have registered some of their most significant sales from properties in the Western Cape. Major players in the residential real estate sector are Pam Golding Properties, RE/MAX of Southern Africa, Seeff Property Services, and Harcourts Real Estate, as well as RDC Properties, WBHO, and Renprop. Though property development is not showing signs of slowing down, developers are struggling to increase occupancy rates due to oversupply.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power Of Suppliers
4.3.2 Bargaining Power Of Buyers/Consumers
4.3.3 Threat Of New Entrants
4.3.4 Threat Of Substitute Products
4.3.5 Intensity Of Competitive Rivalry
4.4 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.5 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector
4.6 Insights into Size of Real Estate Lending and Loaning to Value Trends
4.7 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.8 Insights into Rental Yields in the Residential Real Estate Segment
4.9 Insights into the Capital Market Penetration and REIT Presence in Residential Real Estate
4.10 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
4.11 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
4.12 Insights on Residential Real Estate by Price Segment
4.13 Insights on Residential Real Estate by Province (Gauteng, Western Cape, KwaZulu-Natal, Eastern Cape, and Rest of South America)
4.14 Impact of COVID-19 on the market
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Villas and Landed Houses
5.1.2 Condominiums and Apartments
5.2 By Key Cities
5.2.1 Johannesburg
5.2.2 Cape Town
5.2.3 Durban
5.2.4 Port Elizabeth
5.2.5 Bloemfontein
5.2.6 Pretoria
5.2.7 Rest of South Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Pam Golding Properties
6.2.2 Kaan Development
6.2.3 RDC Properties
6.2.4 Renprop (Pty) Ltd
6.2.5 Pipilo Projects
6.2.6 Harcourts International Ltd
6.2.7 The Amdec Group
6.2.8 Legaro Property Development
6.2.9 Devmark Property Group
6.2.10 Reeflords*
7 FUTURE OF THE MARKET
8 APPENDIX
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security