Talk about a dynamic year — 2024 delivered some surprising twists and turns. Multiple fuel price cuts and lower inflation offered relief to consumers, while the formation of the GNU brought a renewed sense of political stability. Adding to the mix, the easing of loadshedding helped boost buyer confidence across the board. These trends had an undeniable impact on the local real estate market, shaping demand and influencing investment decisions.
Moving into 2025, there’s already a sense of positivity in the air. Dubbed “202thrive”, estate agents are cautiously optimistic about the property sector’s outlook, buoyed by signs of improvement that emerged in late 2024.
Real estate trends defining 2025
To get a clearer picture of what lies ahead, Prop Data polled property practitioners to find out which big trends were likely to shape the market in 2025. The top six results found:
26.1% said affordable housing.
12.7% said activity in the mid-to-upper market.
11.5% said semigration.
9.6% said buy-to-let properties.
8.9% said live-work-play properties.
8.3% said foreign buyers.
“With high interest rates and economic uncertainty, affordable housing remains a major concern for South Africans,” says David Helena, Co-Founder of Kingstons Real Estate. “It’s unsurprising this took first place in the poll. The demand for well-priced homes, especially for first-time buyers, is growing as more people seek security in property ownership without overextending their finances. Government-backed housing incentives and developer focus on cost-effective solutions have further fuelled this trend.”
Despite economic challenges, property practitioners highlighted a movement in the mid-to-upper segment as the second biggest trend. “Buyers are looking for value in a stabilising market,” says Helena. “Many sellers in this category are adjusting their pricing expectations, which has created opportunities for buyers who previously held off due to high costs. Additionally, lifestyle upgrades remain a key motivator for families and professionals.”
After seeing a rise during the COVID-19 lockdown, the semigration trend is still going strongly locally, coming in third in the poll. “The ongoing trend of people moving to coastal towns, smaller cities, and lifestyle estates continues as buyers seek quality of life, security, and work-from-home flexibility,” says Helena. “With infrastructure improvements and remote work becoming the norm, areas like the Western Cape and KwaZulu-Natal Midlands are seeing increased interest.”
Rated as the fourth-biggest trend, property practitioners see the interest in buy-to-let properties remaining strong in 2025. “High interest rates have made homeownership more difficult for many, leading to a stronger rental market,” says Helena. “Investors are capitalising on this by purchasing properties to rent out, particularly in areas with good tenant demand and strong rental yields. The shift toward multi-generational living and short-term rentals has also contributed to this trend.”
As buyers and renters prioritise convenience, security, and lifestyle appeal, the real estate community believes live-work-play properties will be sought-after in 2025. “These mixed-use spaces cater to modern buyers who value accessibility, reducing commuting time,” says Helena. However, integrated developments also provide access to amenities such as shopping, fitness centres, and green spaces. The demand for seamless living environments is reshaping urban development.”
Rounding off the top six real estate trends, property practitioners underscore the growing demand for properties by foreign buyers. “With the rand remaining relatively weak against major currencies, South Africa continues to attract international buyers looking for prime real estate at competitive prices,” says Helena. “Coastal properties, game farms, and lifestyle estates are particularly appealing to expats and investors seeking long-term growth opportunities or holiday homes.”
Making the most of market movements
While signs of a market shift can be a challenge, resilient property practitioners can look at creating opportunities instead. Evolving with the industry and meeting client needs can bring in a steady stream of stock and unlock successful deals. Here’s how savvy professionals can not just survive but thrive in a competitive market.
- Affordable housing: “Work closely with developers and financial institutions to offer innovative financing solutions for buyers,” says Helena. “Understanding government incentives and affordable housing schemes can help guide clients toward homeownership while ensuring deals are structured for long-term affordability.”
- Activity in the mid-to-upper market: Pricing correctly from the start should be the objective. “Sellers need realistic expectations, and agents should provide thorough market analysis to show where properties stand,” says Helena. “Emphasising value over price alone can help buyers see the potential in upgrading during a softer market.”
- Semigration: “To appeal to these types of buyers, focus on lifestyle marketing,” says Helena. “Semigrants are looking for more than just a home — they want security, good schools, and a strong community. Providing detailed area insights and emphasising the long-term benefits of relocating will be key.”
- Buy-to-let properties: “Help investors identify high-demand rental areas with good yields,” says Helena. “Consider properties near universities, business hubs, or transport routes. Also, educate investors on the importance of professional property management to maintain tenant satisfaction and property value.”
- Live-work-play properties: “Take the time to highlight the benefits of convenience, security, and integrated living in your marketing collateral,” says Helena. “Buyers in this category are often professionals or young families, so stressing lifestyle features like co-working spaces, recreational areas, and sustainability features will add value to your pitch.”
- Foreign buyers: “Ensure compliance with regulations around foreign property ownership and provide guidance on legal processes,” says Helena. “Networking with international agents and using digital platforms to showcase listings to global investors can also expand your reach.”
By putting these strategies into practice, estate agents can stay resilient and prosper, no matter how the market shifts. With the right approach, 2025 can be a year of growth and prosperity.
Looking ahead with optimism
Despite market fluctuations, real estate remains one of the most resilient and rewarding industries, says Helena. “The key to success in 2025 will be adaptability — embracing change, leveraging technology, and continuously improving client service. There are always opportunities in property, whether it’s finding new investment angles, assisting first-time buyers, or innovating in marketing strategies. Stay informed, stay proactive, and most importantly, stay focused on delivering value. The industry is evolving, and those who move with it will thrive.”