South Africa Residential Real Estate Market Report is Segmented by Property Type (Villas & Landed Houses, Apartments & Condominiums), by Price Band (Affordable Housing, Mid-Market, and Luxury), by Business Model (Sales and Rental), by Mode of Sale (Primary (New-Build), and More), and by Key Cities (Cape Town, Johannesburg, and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Graph and download economic data for Residential Property Prices for South Africa (QZAN368BIS) from Q1 1967 to Q1 2025 about South Africa, residential, housing, and price.

Residential Property Prices in South Africa increased 5.90 percent in April of 2025 over the same month in the previous year. This dataset includes a chart with historical data for South Africa Residential Property Prices.

The residential property market in South Africa has grown year-on-year between 2001 and 2023, except for 2008. Since 2009, the annual house price increase varied between *** and eight percent. In 2023, house prices appreciated by *** percent. While the market has been growing, the growth rate was much lower than during the period before the global financial crisis. Meanwhile, rental growth in South Africa has accelerated since 2021.

The prices for the cheapest newly built housing in two African countries, Sudan and South Sudan, exceeded ****** U.S. dollars in 2024. In the Seychelles, the price of the most affordable housing was about ****** U.S. dollars. Nigeria, Kenya, and Egypt all had house prices under 10,000 U.S. dollars.

The South African commercial real estate market, valued at $9.62 billion in 2025, is projected to experience robust growth, with a compound annual growth rate (CAGR) of 10.84% from 2025 to 2033. This expansion is driven by several factors. Firstly, a growing economy and increasing urbanization are fueling demand for office spaces, particularly in major cities like Johannesburg, Cape Town, and Durban. The rise of e-commerce and associated logistics needs are boosting the industrial and logistics sector. Furthermore, a burgeoning tourism sector contributes to the growth of the hospitality segment. However, economic volatility and potential interest rate hikes present challenges. While the office segment is expected to be a major contributor to market growth, the ongoing shift towards hybrid work models could moderate this growth. The retail sector may face some headwinds due to evolving consumer behavior and the increasing popularity of online shopping. Despite these challenges, the overall market outlook remains positive, driven by long-term infrastructural development and continued investment in key cities. Key players like Devmark Property Group, Rabie Property Group, and Growthpoint Properties are well-positioned to benefit from these trends. The segmentation of the market across office, retail, industrial and logistics, and hospitality sectors provides a diversified investment landscape. While Johannesburg, Cape Town, and Durban represent the largest market shares, growth is also anticipated in secondary cities as economic activity expands across the country. The presence of established and well-capitalized real estate companies suggests a mature market with a high level of competition. Future growth will depend on the government's ability to foster economic stability, address infrastructure gaps, and support sustainable urban development. The resilience of the South African economy and its long-term growth potential remain key factors in influencing the success of the commercial real estate sector. Recent developments include: November 2023: WeWork South Africa is accelerating its expansion plans as the rise in popularity of hybrid work sees a boost in demand for flexible office spaces., September 2023: Instant Group, a flexible workspace marketplace, has acquired property advisor PSA to broaden its reach and grow its business across Africa.. Key drivers for this market are: 4., Urbanization and Population growth4.; Foreign direct investments. Potential restraints include: 4., Economic uncertainity4.; Regulatory environment. Notable trends are: Increasing office space demand in South Africa.

The South Africa Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail, Logistics, Others), by Business Model (Sales, Rental), by End-User (Individuals/Households, Corporates & SMEs, Others), and by Geography (Johannesburg, Cape Town, Durban, Port Elizabeth/Gqeberha, Rest of South Africa). The Market Forecasts are Provided in Terms of Value (USD).

South Africa Real Estate Market size was valued at USD 22.66 Billion in 2024 and is projected to reach USD 34.51 Billion by 2032, growing at a CAGR of 5.4% from 2026 to 2032.

​The South African real estate market is influenced by several key drivers. Rapid urbanization and population growth have led to increased demand for housing and commercial properties, particularly in metropolitan areas. Economic development and foreign investment have further stimulated the market, with infrastructure improvements enhancing connectivity and making locations more attractive for development. The expansion of the middle class has resulted in higher purchasing power, driving demand for quality housing and commercial spaces. Additionally, technological advancements, such as smart building technologies and digital platforms, are transforming property management and investment strategies. Sustainability trends and compliance with environmental, social, and governance (ESG) criteria are also becoming increasingly important, influencing development practices and investor decisions. Collectively, these factors contribute to the dynamic and evolving landscape of South Africa's real estate market

The South African commercial real estate market, valued at $9.28 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.63% from 2025 to 2033. This expansion is fueled by several key drivers. Increased urbanization and population growth in major cities like Johannesburg, Cape Town, and Durban are creating a surge in demand for office, retail, and industrial spaces. Furthermore, a burgeoning tourism sector and associated hospitality investments are contributing significantly to the market's positive trajectory. The ongoing development of logistics infrastructure to support growing e-commerce activity also plays a crucial role. While potential economic uncertainties and fluctuations in interest rates could pose challenges, the overall market outlook remains positive, underpinned by the continued strength of the South African economy and targeted investments in key sectors. Strong performance is expected across all segments, with the office and logistics sectors likely to see particularly substantial gains due to increasing corporate activity and supply chain optimization strategies respectively. The diverse portfolio of established and emerging property developers in South Africa, including major players like Growthpoint Properties and Amdec Group, further underscores the market's dynamic nature and competitive landscape. The segmentation of the market reveals strong growth potential within specific areas. The substantial investment in modernizing existing commercial infrastructure in Johannesburg and Cape Town will drive significant growth. Furthermore, the expansion of retail spaces in rapidly growing suburban areas will cater to evolving consumer preferences and boost market value in those regions. However, challenges remain, including the need for continued infrastructure development to support sustainable growth in key areas, particularly in logistics and transportation networks. While the overall market exhibits positive momentum, proactive strategies focused on addressing these factors will be crucial to ensure sustained, long-term growth. Careful risk management by investors and developers regarding economic volatility will be critical in navigating potential headwinds. Recent developments include: November 2023: WeWork South Africa announced that it was accelerating its expansion plans as the rise in popularity of hybrid work saw a boost in demand for flexible office spaces.September 2023: Instant Group, a flexible workspace marketplace, acquired property advisor PSA to broaden its reach and grow its business across Africa.. Key drivers for this market are: 4., Urbanization and Population Growth4.; Foreign Direct Investments. Potential restraints include: 4., Urbanization and Population Growth4.; Foreign Direct Investments. Notable trends are: Increasing Demand for Office Space in South Africa.

In 2023, the South Africa Real Estate Market reached a value of USD 60.9 million, and it is projected to surge to USD 98.4 million by 2030.

View quarterly updates and historical trends for South Africa House Price Index. Source: Federal Reserve Bank of Dallas. Track economic data with YCharts …

Abstract

The Residential Property Price Index (RPPI) for South Africa was compiled by Statistics South Africa in partnership with the South African Reserve Bank and with the support of the International Monetary Fund. The source data for the RPPI are the records of property transactions registered with the Office of the Chief Registrar of Deeds (Deeds office). The RPPI is compiled using internationally accepted methods as outlined in Eurostat's Handbook on Residential Property Price Indices and the IMF's Residential Property Price Index Practical Compilation Guide. These documents are provided with the data. The indices are calculated using a rolling window time dummy hedonic regression model. The purpose of RPPIs is to measure changes in the price of residential properties, such as houses, townhouses and flats, purchased by households. Both new and existing dwellings are covered, independently of their final use and their previous owners. Only market prices are considered, including the price of the land on which residential buildings are located.

Analysis unit

Other

Kind of data

Administrative records

Mode of data collection

Other

This dataset provides values for RESIDENTIAL PROPERTY PRICES reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The South African residential real estate market, valued at $19.89 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 10.46% from 2025 to 2033. This growth is driven by several factors including a growing population, increasing urbanization, particularly in major cities like Johannesburg, Cape Town, and Durban, and a strengthening economy. Demand is particularly strong for villas, landed houses, and condominiums, reflecting a diverse range of buyer preferences and affordability levels. While the market benefits from government initiatives aimed at affordable housing and infrastructure development, constraints such as high interest rates, fluctuating exchange rates, and limited housing stock in desirable areas could temper growth in specific segments. The major players in the market, including Pam Golding Properties, Kaan Development, and RDC Properties, are actively shaping the market through innovative developments and strategic acquisitions. Competition is intense, particularly in the premium segments. The market's future is promising, indicating continued growth driven by consistent demand and strategic investment. The segmentation within the South African residential real estate market reveals noteworthy trends. The "Villas and Landed Houses" segment is expected to remain dominant, appealing to high-net-worth individuals and families seeking spacious living. However, the "Condominiums and Apartments" segment is experiencing significant growth, driven by an increasing number of young professionals and urban dwellers seeking more convenient and affordable living options. Geographically, Johannesburg, Cape Town, and Durban consistently maintain their positions as the most lucrative markets, attracting both domestic and international investment. However, other cities like Pretoria and Port Elizabeth are also witnessing increased activity as infrastructure improves and economic opportunities expand. The overall market is characterized by a healthy balance of supply and demand, though specific locations and property types may experience periods of greater competitiveness. Recent developments include: July 2022- To improve access to affordable and sustainable housing in South Africa, IFC (International Finance Corporation) announced an investment to help South African residential property developer Alleyroads build over 1,000 rental apartments in the Johannesburg area., June 2022- Construction of a new mixed-use building, Rubik, began in Cape Town's CBD. The building will complement the city's growing skyline. Located on the corner of Roop and Rybeek Streets, the Rubik consists of luxury residential apartments above prime office and quality retail space. The architects have designed it in a very characteristic modern glass 'layered' building.. Notable trends are: Increasing Demand for Sectional Title Living in South Africa.

Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums, and Landed Houses & Villas), by Price Band (Affordable, Mid-Market, and Luxury/Super-prime), by Business Model (Sales and Rental), by Mode of Sale (Primary and Secondary), and by Region (North America, South America, Europe, Asia-Pacific, and Middle East & Africa). The Market Forecasts are Provided in Terms of Value (USD).

The number of residential property sales in South Africa decreased for the second year in a row in 2020, reaching approximately ****** home sales. The strongest year for the housing market was 2018, when roughly ****** home sales took place. Over the whole observation period, properties in the luxury market segment of over *** million South African rands comprised the largest share of transactions.

Snapshot img

Real Estate Market Size 2025-2029

The real estate market size is valued to increase USD 1258.6 billion, at a CAGR of 5.6% from 2024 to 2029. Growing aggregate private investment will drive the real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 64% growth during the forecast period.
By Type - Residential segment was valued at USD 1440.30 billion in 2023
By Business Segment - Rental segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 48.03 billion
Market Future Opportunities: USD 1258.60 billion
CAGR from 2024 to 2029 : 5.6%

Market Summary

In the dynamic realm of global real estate, private investment continues to surge, reaching an impressive USD 2.6 trillion in 2020. This significant influx of capital underscores the sector's enduring appeal to investors, driven by factors such as stable returns, inflation hedging, and the ongoing demand for shelter and commercial real estate space. Simultaneously, marketing initiatives have gained momentum, with digital platforms and virtual tours becoming increasingly popular.
However, regulatory uncertainty looms, posing challenges for market participants. Amidst this complex landscape, real estate remains a vital component of the global economy, continually evolving to meet the shifting needs of businesses and individuals alike.

What will be the Size of the Real Estate Market during the forecast period?

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How is the Real Estate Market Segmented ?

The real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Residential
  Commercial
  Industrial


Business Segment

  Rental
  Sales


Manufacturing Type

  New construction
  Renovation and redevelopment
  Land development


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The residential segment is estimated to witness significant growth during the forecast period.

Amidst the dynamic real estate landscape, the residential sector encompasses the buying and selling of various dwelling types, including single-family homes, apartments, townhouses, and more. This segment experiences continuous growth, fueled by increasing millennial homeownership rates and urbanization trends. Notably, the APAC region, specifically China, dominates the market share, driven by escalating homeownership numbers. Concurrently, the Indian real estate sector thrives due to the demand for affordable housing, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects. In this evolving market, various aspects such as environmental impact studies, capital appreciation potential, title insurance coverage, building lifecycle costs, mortgage interest rates, and structural engineering analysis play crucial roles.

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The Residential segment was valued at USD 1440.30 billion in 2019 and showed a gradual increase during the forecast period.

Property tax appeals, property insurance premiums, property tax assessments, property marketing strategies, building material pricing, property management software, land surveying techniques, zoning regulations compliance, architectural design features, building code compliance, multifamily property management, rental yield calculations, construction cost estimation, energy efficiency ratings, green building certifications, tenant screening processes, investment property returns, property development plans, geotechnical site investigations, sustainable building practices, due diligence procedures, HVAC system efficiency, property renovation costs, market value appraisals, building permit acquisition, and property valuation models significantly impact the sector's progression. As of 2021, the market is projected to reach a value of USD 33.3 trillion, underscoring its substantial influence on the global economy.

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Regional Analysis

APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region held the largest share of the market in 2024, driven by factors such as rapid urbanization and increasing spending capacity. This trend is expected to continue during the forecast period. The overall health of the economy signi

The Africa Prefabricated Housing Market is segmented by type (single-family and multi-family) and country (Nigeria, Egypt, South Africa, and the rest of Africa). The report offers market sizes and forecasts in value (USD) for all the above segments.

Housing Index in South Africa increased to 119.80 points in April from 119.10 points in March of 2025. This dataset provides - South Africa Housing Index- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Snapshot img

Residential Real Estate Market Size 2025-2029

The residential real estate market size is valued to increase USD 485.2 billion, at a CAGR of 4.5% from 2024 to 2029. Growing residential sector globally will drive the residential real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 55% growth during the forecast period.
By Mode Of Booking - Sales segment was valued at USD 926.50 billion in 2023
By Type - Apartments and condominiums segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 41.01 billion
Market Future Opportunities: USD 485.20 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global economy. With increasing marketing initiatives and the growing residential sector globally, the market presents significant opportunities for growth. However, regulatory uncertainty looms large, posing challenges for stakeholders. According to recent reports, technology adoption in residential real estate has surged, with virtual tours and digital listings becoming increasingly popular. In fact, over 40% of homebuyers in the US prefer virtual property viewings. Core technologies such as artificial intelligence and blockchain are revolutionizing the industry, offering enhanced customer experiences and streamlined processes.
Despite these advancements, regulatory compliance remains a major concern, with varying regulations across regions adding complexity to market operations. The market is a complex and intriguing space, with ongoing activities and evolving patterns shaping its future trajectory.

What will be the Size of the Residential Real Estate Market during the forecast period?

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How is the Residential Real Estate Market Segmented and what are the key trends of market segmentation?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period.

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The Sales segment was valued at USD 926.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 55% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Residential Real Estate Market Demand is Rising in APAC Request Free Sample

The market in the Asia Pacific (APAC) region holds a significant share and is projected to lead the global market growth. Factors fueling this expansion include the region's rapid urbanization and increasing consumer spending power. Notably, residential and commercial projects in countries like India and China are experiencing robust development. The residential real estate sector in China plays a pivotal role in the economy and serves as a major growth driver for the market.

With these trends continuing, the APAC the market is poised for continued expansion during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the Residential Real Estate Market, understanding the impact property tax rates home values and effect interest rates mortgage affordability is essential for buyers and investors. Key factors affecting home price appreciation and factors influencing housing affordability shape market trends, while the importance property due diligence process and requirements environmental site assessment ensure informed decisions. Investors benefit from methods calculating rental property roi, process home equity loan application, and benefits real estate portfolio diversification. Tools like property management software efficiency and techniques effective property marketing help tackle challenges managing rental properties. Additionally, strategies successf