The South African real estate market in 2025 is poised to undergo significant transformation driven by economic dynamics, shifting consumer preferences, and sustainability. John Herbst, CEO of Fine & Country Sub-Saharan Africa, predicts five major trends shaping the sector: efficient living, technology, sustainable investments, high-end properties, and economic resilience.

Efficient living focuses on young professionals seeking affordable, accessible, and sustainable urban housing. Mid-tier housing demand signals demographic and economic shifts, with shared amenities and low-maintenance designs gaining traction. High-end properties, however, continue to perform well in urban hubs.

Technology is revolutionising real estate with digital property management and online transaction systems. These innovations enhance accessibility for tech-savvy local and international buyers, expanding market reach.

Sustainability and impact investing are growing, with properties increasingly incorporating energy-efficient designs such as solar power and green building practices. The African Continental Free Trade Area (AfCFTA) is further boosting sustainable developments and cross-border investment opportunities, aligning real estate with global sustainability goals.

High-end and lifestyle properties remain a robust market segment, particularly in cities like Cape Town and Johannesburg, where mixed-use developments with luxury amenities attract both local and international buyers seeking exclusive living experiences.

Economic resilience, supported by diversified investment opportunities, underscores real estate’s appeal. Key regions like Johannesburg and Cape Town are projected to sustain demand across residential and commercial sectors, benefiting from South Africa’s developed infrastructure and competitive market.

The market’s adaptability to practical and aspirational needs positions it for sustained growth, attracting a broader spectrum of investors and residents.