South Africa’s retirement property market, while still small, is becoming increasingly vital as demand for dedicated retirement communities grows. According to property data analytics company Lightstone, around 44,000 households currently reside in formal retirement complexes, representing a significant segment of the housing market. This trend is driven by a growing senior population, shifting lifestyle preferences, and increasing financial security among older adults. Of the country’s 5.45 million residential properties (excluding social housing), about one-third is owned by individuals over the age of 60, with 25% of these purchases made after turning 60.

There are approximately 650 retirement complexes across the country, split between estates and sectional schemes, with 44,000 units formally registered at the Deeds Office. The majority of these properties, valued at over R1.5 million, cater to the upper market. However, Lightstone highlights the gap in affordable retirement housing, given that the existing supply only accommodates a small fraction of the senior population.

Over the last five years, R28 billion has been spent on more than 15,000 properties in retirement complexes, with an average price of R1.9 million. While the Western Cape, Gauteng, and KwaZulu-Natal dominate in terms of sales volumes, the Western Cape has consistently recorded the highest average sale prices.

Despite rising sales, the need for more diverse, accessible retirement housing solutions remains, particularly for lower-income groups. This growing demand underscores the potential for further development in South Africa’s retirement property market.