Top Property Trends For 2025
Written By: Renate Engelbrecht
When it comes to the real estate market, experts are saying that investors and buyers can be optimistic about the year ahead.
Dr Andrew Golding says: “South Africa’s housing market is showing promising signs of recovery, driven by several key economic and political developments. As of 2024, the country has seen improved sentiment, with significant milestones such as the suspension of loadshedding in March, fuel price cuts, lower inflation and the formation of a Government of National Unity (GNU) following the May elections. These factors, coupled with the prospect of continued interest rate cuts, have fostered an optimistic outlook for the residential property market heading into 2025.”
Factors Driving the Real Estate Market
Three fundamental factors currently drive the housing market according to him. Firstly, South Africa’s young population guarantees a steady demand for housing. Growing economic stability and easing inflation supports this. Additionally, business and consumer confidence is at a five-year high. This also drives increased homebuying. This is reinforced by political and economic recovery. Last, but not least, declining interest rates and improved household finances make property more affordable. Consequently, this results in a higher demand.
Find & Country Sub-Saharan Africa CEO, John Herbst, highlights an additional five key trends. According to him, “the real estate market is set to be shaped by both practical and aspirational needs, balancing affordability with sustainability and technological innovation.”
The five key trends he believes will shape the property market in 2025 include:
– Efficient living
– Technology
– Sustainable and impact investing
– High-end and lifestyle properties
– Economic resilience.
This is all through diversified investment opportunities. According to Herbst, young professionals are looking for properties that balance location, affordability and accessibility. Further to this, he says that the adoption of technology is becoming critical for real estate growth.
More and more “South African properties are being designed with energy-efficient solutions, such as solar power and green building practices.” And, Herbst says there is still demand for premium lifestyle properties despite the affordable property segment gaining traction.
“These high-end developments are increasingly aimed at meeting both local and international buyers’ expectations for exclusive, lifestyle-oriented properties.”
Lastly, he adds that key economic areas like Joburg and Cape Town are expected to see sustained demand in both residential and commercial properties. “As investors aim to diversify, South African real estate presents a favourable option due to its robust market foundations and potential for long-term returns.”
Craig Mott, Business Development Manager for the Rawson Property Group says some of the world’s wealthiest individuals founded their empires on property investment. Perhaps 2025 is the year for savvy investors to fill the gaps in their portfolios with some strategic expansions in the property market.