What millennial and Gen Z buyers want from property in South Africa
The South African housing market is undergoing a significant transformation driven by the preferences and buying habits of younger generations – who are looking for affordable, safe, sustainable and tech-forward homes.
Millennials generally refer to those born between 1980 and 1996, with those in the generation ranging in age from 27 to 44.
This generation has been particularly hard hit by the global financial crisis and the COVID-19 pandemic, as many were starting to enter the job market as the world’s economy collapsed.
That said, as the generation now enters the property market in increasing numbers, they are changing how homes are bought and sold, which influences everything from property types to location preferences.
“Millennials are now a powerful force in the real estate market. Their unique preferences and financial behaviours are driving changes that are impacting the entire housing sector,” said Richard Gray, CEO of Harcourts South Africa.
“This generation prioritises flexibility, technology, and sustainable living, which is markedly different from previous generations.”
A notable shift is the preference for urban living and access to amenities.
Unlike their predecessors, millennials are less inclined to settle in suburban areas far from city centres.
“We’re seeing a strong preference for properties in urban areas with convenient access to work, public transport, and social amenities,” said Gray.
“This is driving demand for apartments and townhouses in well-connected neighbourhoods.”
The tech-savvy nature of millennials is also transforming how real estate transactions are being conducted.
The adoption of digital tools and online platforms is necessary to meet the expectations of millennial buyers.
“Millennials expect a seamless, tech-driven experience when buying or selling property,” Gray added.
Sustainability is also a critical factor influencing millennial home buyers, who value eco-friendly features and energy-efficient homes.
“Green living is not just a trend for millennials; it’s a lifestyle choice,” said Gray.
“They are more likely to invest in properties that offer sustainable features such as solar panels, energy-efficient appliances, and eco-friendly building materials. This is encouraging developers to incorporate green technologies into their projects.”
Affordability is also a key concern for many millennial buyers as many are still paying off students. The competitive job market is also not helping.
“Affordability is paramount. Millennials are looking for value for money and are often more willing to compromise on property size in favour of location and quality. They are also exploring creative financing options and are more open to co-ownership and fractional ownership models.”
Millennials and Gen Z have similar interests
According to Pearl Scheltema, CEO of Fitzanne Estate, younger millennial and Gen Z buyers are entering the market in significant numbers and also influencing the types of properties that are in demand and the features they expect in their homes.
Echoing Harcourts, Scheltema said that these generations are “true digital natives” and are highly influenced by technology and sustainability in their purchasing decisions—but cost and affordability reign supreme.
“One of the primary challenges for these groups is affordability,” said Scheltema.
“High property prices, coupled with stringent lending criteria and economic uncertainty, have made it difficult for many young people to enter the property market.”
The emotional aspect of buying a home also plays a significant role, with many reporting the process as being particularly stressful and overwhelming.
For Millennials and Generation Z, technology is a fundamental aspect of life, Scheltema said.
“This is clearly reflected in their property preferences, which strongly favour homes equipped with advanced smart home technologies. Features such as automated security systems, smart lighting, and energy management tools are particularly appealing.”
For these tech-savvy generations, the ability to control various aspects of their homes remotely, from temperature settings to security alarms, through a smartphone app is especially important.
Environmental concerns are also deeply ingrained in the values of both Millennials and Gen Z, influencing their decisions in the property market significantly, the CEO said.
Energy-efficient appliances, solar panels, and the use of sustainable materials in construction are key features that attract these buyers.
Above price, technology and sustainability, younger generations are also well aware of the realities of living in South Africa, and safety and security remain a prioritiy—though this is not unique to this generation.
Overall, younger buyers tend to prefer properties within secure complexes and new developments that offer advanced security measures, Scheltema said.
“These younger homebuyers seek properties that provide peace of mind through integrated security systems, including high-definition surveillance cameras, motion sensors, and automated gates that can be controlled remotely,” she said.
Modern developments are increasingly incorporating smart security technologies that allow residents to monitor their homes via smartphones, receive alerts, and even control access remotely, making these properties particularly attractive to a generation that prioritises both safety and technological integration.
“This trend reflects a broader shift towards multifunctional homes where security, sustainability, and technology converge to create living spaces that align with contemporary lifestyles and values,” says Scheltema.
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