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South Africa Real Estate Market Analysis

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.

• 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 Industry Segmentation

Residential real estate is an area developed for people to live in. As defined by local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes. A complete background analysis of the South Africa Residential Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

The South Africa Residential Real Estate Market is segmented By Type (Villas and Landed Houses, Condominiums, and Apartments) and By city (Johannesburg, Cape Town, Durban, Port Elizabeth, Bloemfontein, Pretoria, and the Rest of South Africa). The report offers the market size and forecasts in values (USD billion) for all the above segments.