As of 2023, South Africa's population increased and counted approximately 62.3 million inhabitants in total, of which the majority inhabited Gauteng, KwaZulu-Natal, and the Western-Eastern Cape. Gauteng (includes Johannesburg) is the smallest province in South Africa, though highly urbanized with a population of over 16 million people according to the estimates. Cape Town, on the other hand, is the largest city in South Africa with nearly 3.43 million inhabitants in the same year, whereas Durban counted 3.12 million citizens. However, looking at cities including municipalities, Johannesburg ranks first. High rate of young population South Africa has a substantial population of young people. In 2024, approximately 34.3 percent of the people were aged 19 years or younger. Those aged 60 or older, on the other hand, made-up over 10 percent of the total population. Distributing South African citizens by marital status, approximately half of the males and females were classified as single in 2021. Furthermore, 29.1 percent of the men were registered as married, whereas nearly 27 percent of the women walked down the aisle. Youth unemployment Youth unemployment fluctuated heavily between 2003 and 2022. In 2003, the unemployment rate stood at 36 percent, followed by a significant increase to 45.5 percent in 2010. However, it fluctuated again and as of 2022, over 51 percent of the youth were registered as unemployed. Furthermore, based on a survey conducted on the worries of South Africans, some 64 percent reported being worried about employment and the job market situation.

Chart and table of population level and growth rate for the Ethekwini, South Africa metro area from 1950 to 2025.

South Africa is the sixth African country with the largest population, counting approximately 60.5 million individuals as of 2021. In 2023, the largest city in South Africa was Cape Town. The capital of Western Cape counted 3.4 million inhabitants, whereas South Africa's second largest city was Durban (eThekwini Municipality), with 3.1 million inhabitants. Note that when observing the number of inhabitants by municipality, Johannesburg is counted as largest city/municipality of South Africa.

From four provinces to nine provinces

Before Nelson Mandela became president in 1994, the country had four provinces, Cape of Good Hope, Natal, Orange Free State, and Transvaal and 10 “homelands” (also called Bantustans). The four larger regions were for the white population while the homelands for its black population. This system was dismantled following the new constitution of South Africa in 1996 and reorganized into nine provinces. Currently, Gauteng is the most populated province with around 15.9 million people residing there, followed by KwaZulu-Natal with 11.68 million inhabiting the province. As of 2022, Black African individuals were almost 81 percent of the total population in the country, while colored citizens followed amounting to around 5.34 million.

A diverse population

Although the majority of South Africans are identified as Black, the country’s population is far from homogenous, with different ethnic groups usually residing in the different “homelands”. This can be recognizable through the various languages used to communicate between the household members and externally. IsiZulu was the most common language of the nation with around a quarter of the population using it in- and outside of households. IsiXhosa and Afrikaans ranked second and third with roughly 15 percent and 12 percent, respectively.

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.

The African construction industry, valued at $58.28 billion in 2025, is projected to experience robust growth, with a compound annual growth rate (CAGR) of 4.83% from 2025 to 2033. This expansion is fueled by several key drivers. Significant infrastructure development initiatives across the continent, aimed at improving transportation networks, energy grids, and communication systems, are driving substantial demand. Rapid urbanization and population growth are also contributing factors, creating a need for new residential and commercial buildings. Furthermore, growing investment in renewable energy projects and industrial expansion are further stimulating sector growth. While challenges remain, such as inadequate funding for certain projects, regulatory hurdles, and skills gaps within the workforce, the long-term outlook for the African construction sector remains positive. Government initiatives focused on improving ease of doing business and attracting foreign investment are expected to mitigate some of these challenges. The industry's segmentation, encompassing commercial, residential, industrial, infrastructure, and energy & utilities construction, along with diverse construction types (additions, demolition, and new constructions), offers opportunities for varied players, from large multinational corporations like China Communications Construction Group and Vinci to local and regional contractors. The market's regional distribution is expected to show significant variation, with certain regions experiencing faster growth than others. North Africa, benefiting from relatively stable economies and large-scale infrastructure projects, is likely to represent a substantial portion of the market. Sub-Saharan Africa, while facing unique challenges, will witness considerable growth driven by investments in key sectors like mining and agriculture. The construction type segment will likely reflect similar trends, with new constructions dominating the market share due to the burgeoning infrastructure needs and urban expansion. The industry's ability to adapt to evolving technological advancements, such as Building Information Modeling (BIM) and sustainable construction practices, will significantly influence its future trajectory and competitive landscape. A focus on efficient project management and risk mitigation strategies will be crucial for sustained growth and profitability. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and announced that it was on track for the start of construction of the first utility-scale solar project in Botswana.November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 sq. m (62,430 sq. ft). Teraco’s Durban facility opened in 2011, providing 1 MW across 600 sq. m (6,460 sq. ft). In 2018, another expansion was announced, adding 1,000 sq. m (10,765 sq. ft) of white space to the site, bringing the total space to 2,000 sq. m (21,530 sq. ft).. Key drivers for this market are: 4., Rapid Urbanization Driving the Market4.; Economic Development. Potential restraints include: 4., Rapid Urbanization Driving the Market4.; Economic Development. Notable trends are: Infrastructure Construction Projects Driving the Market.

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.