Top trends for property buyers and investors to look out for in 2025
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.
This is the view presented by John Herbst, CEO of Fine & Country Sub-Saharan Africa, who said that “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,” said Herbst.
The property CEO outlined five key trends that he predicts will shape the country’s real estate market, being:
- Efficient living;
- Technology;
- Sustainable and impact investing;
- High-end and lifestyle properties;
- Economic resilience through diversified investment opportunities.
Efficient living:
Herbst said that young professionals, in particular, are looking for properties that balances 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,” said the Fine & Country Sub-Saharan Africa CEO.
Technology:
Herbst said that 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,” said Herbst.
He added that the African Continental Free Trade Area (AfCFTA) 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,” said Herbst.
High-end and lifestyle properties
While the affordable segment is gaining traction, Herbst has observed that 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 recorded as being very popular.
“These high-end developments are increasingly aimed at meeting both local and international buyers’ expectations for exclusive, lifestyle-oriented properties,” said Herbst.
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,” said the CEO.
He said that key economic areas like Johannesburg and Cape Town are expected to see sustained demand in both residential and commercial properties.
However, 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,” he added.
Overall, “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,” explained Herbst.
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