The future of South African real estate - top trends for buyers and investors

The South African real estate market in 2025 is anticipated to witness notable trends shaped by evolving economic factors, changing consumer behaviours, and increased focus on sustainable development.

John Herbst, CEO of Fine & Country Sub-Saharan Africa explains this in more detail: 

• Efficient living Young professionals, in particular, are looking for properties that balance location, affordability, and accessibility. This trend highlights a growing interest in urban spaces designed for efficient living, whether through shared amenities or sustainable design elements that lower maintenance costs over time. While high-end properties continue to perform well, the increased demand for mid-tier housing points to shifts in the buyer demographic and economic landscape.
• Technology The adoption of technology is becoming a critical element for real estate growth. This includes online property management systems and streamlined processes for buying and selling properties. This digital shift caters to tech-savvy buyers and improves market accessibility, allowing international buyers to explore South African properties without needing to visit physically. 
• Sustainable and impact investing Driven by global sustainability trends, more South African properties are being designed with energy-efficient solutions, such as solar power and green building practices. The African Continental Free Trade Area is also expected to positively influence real estate by creating a more unified African market, facilitating easier cross-border investments, and encouraging developers to build sustainably. For investors, properties that align with sustainable goals offer not only potential financial returns but also contribute positively to the environment and community development​
• High-end and lifestyle properties While the affordable segment is gaining traction, there is still robust demand for premium properties that offer a comprehensive lifestyle experience. In urban hubs like Cape Town and Johannesburg, mixed-use developments and luxury residences with amenities such as fitness centres, coworking spaces, and communal green areas are popular. These high-end developments are increasingly aimed at meeting both local and international buyers' expectations for exclusive, lifestyle-oriented properties.
• Economic resilience through diversified investment opportunities 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. Key areas like Johannesburg and Cape Town are expected to see sustained demand in both residential and commercial properties. This diversification is not limited to local buyers; South Africa's investment appeal remains strong internationally due to its developed infrastructure and competitive real estate market​

The real estate market is set to be shaped by both practical and aspirational needs, balancing affordability with sustainability and technological innovation. This diversified approach will likely draw a wider range of investors, while giving residents more accessible, sustainable living options.

Craig Mott, Business Development Manager for the Rawson Property Group, previously shared the top 4 techniques used to build these high-performance portfolios that deliver mogul-worthy returns.

Mott says, some of the world's wealthiest individuals founded their empires on property investment. 

Don't overlook an opportunity

"The best property investors keep a constant finger on the pulse of the property market," says Mott. "They're constantly on the lookout for optimal conditions and aren't afraid to leap when an opportunity presents itself."

Currently, Mott says the market is ideally positioned for portfolio expansion, with excellent lending rates and a wide variety of stock available.

"We're seeing a lot of savvy investors using this time to fill gaps in their portfolios and implement strategic expansion strategies," he says.

Build strategic partnerships

Becoming a property investment expert doesn't happen overnight. That's why most successful investors have a property professional on their team.

"Building a relationship with an experienced real estate and/or rental agent opens a lot of doors for you as an investor," says Mott. "Not only can you get early access to prime, as-yet-unlisted properties, you also get up-to-the-minute advice on the latest investment best practices, legislative updates and property trends."

Understand what success looks like

Bigger isn't always better when it comes to property investment. According to Mott, the key metric to look out for is not overall portfolio value, but rather whether your total returns equal or exceed those of equivalent monetary investment funds.

"If, for argument's sake, the same money would have performed better in a money market - before capital appreciation - you can't regard that investment as being successful," says Mott. "Of course, property investment is a long-term venture, so don't be overly swayed by individual properties' short-term performance. At the same time, don't put all your eggs in the capital appreciation basket - investment properties shouldn't need to be sold before they deliver profits."

Never take performance for granted

Done right, Mott says property can dramatically outperform almost any other asset class. If it's not living up to its full potential, it's time to update your strategy.

"There are always going to be properties that don't perform as expected, and these can drag the overall returns from a portfolio down," he says. "Don't fall into the trap of hanging on to this 'dead wood'. The most successful investors do regular checks of each and every property's performance. Those that consistently deliver below expectations, and cannot easily be remedied, should be sold to increase cash flow or finance more promising new investments."