The Report on Housing Market South Africa is segmented By Type (Villas and Landed Houses, Condominiums, and Apartments) and By city (Johannesburg, Cape Town, Durban, Port Elizabeth, Bloemfontein, Pretoria, and the Rest of South Africa). The report offers the market size and forecasts in values (USD billion) for all the above segments.

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.

Commercial Real Estate Market in South Africa Report is Segmented by Type (Office, Retail, Industrial and Logistics, and Hospitality) and Key Cities (Johannesburg, Cape Town, Durban, Port Elizabeth, and Other Key Cities). The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

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

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Real Estate Market Size 2025-2029

The real estate market size is forecast to increase by USD 1,258.6 billion at a CAGR of 5.6% between 2024 and 2029.

The market is experiencing significant shifts and innovations, with both residential and commercial sectors adapting to new trends and challenges. In the commercial realm, e-commerce growth is driving the demand for logistics and distribution centers, while virtual reality technology is revolutionizing property viewings. Europe's commercial real estate sector is witnessing a rise in smart city development, incorporating LED lighting and data centers to enhance sustainability and efficiency. In the residential sector, wellness real estate is gaining popularity, focusing on health and well-being. Real estate software and advertising services are essential tools for asset management, streamlining operations, and reaching potential buyers. Regulatory uncertainty remains a challenge, but innovation in construction technologies, such as generators and renewable energy solutions, is helping mitigate risks.

What will be the Size of the Real Estate Market During the Forecast Period?

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The market continues to exhibit strong activity, driven by rising population growth and increasing demand for personal household space. Both residential and commercial sectors have experienced a rebound in home sales and leasing activity. The trend towards live-streaming rooms and remote work has further fueled demand for housing and commercial real estate. Economic conditions and local market dynamics influence the direction of the market, with interest rates playing a significant role in investment decisions. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, remain popular options for buyers and tenants. Offline transactions continue to dominate, but online transactions are gaining traction.
The market encompasses a diverse range of assets, including land, improvements, buildings, fixtures, roads, structures, utility systems, and undeveloped property. Vacant land and undeveloped property present opportunities for investors, while the construction and development of new housing and commercial projects contribute to the market's overall growth.

How is this Real Estate Industry segmented and which is the largest segment?

The 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

  APAC

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK


  South America

    Brazil


  Middle East and Africa

By Type Insights

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

The market encompasses the buying and selling of properties designed for dwelling purposes, including buildings, single-family homes, apartments, townhouses, and more. Factors fueling growth in this sector include the increasing homeownership rate among millennials and urbanization trends. The Asia Pacific region, specifically China, dominates the market due to escalating homeownership rates. In India, the demand for affordable housing is a major driver, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects catering to the needs of lower and middle-income groups. The commercial real estate segment, consisting of office buildings, shopping malls, hotels, and other commercial properties, is also experiencing growth.

Furthermore, economic and local market conditions, interest rates, and investment opportunities in fully furnished, semi-furnished, unfurnished properties, and rental properties influence the market dynamics. Technological integration, infrastructure development, and construction projects further shape the real estate landscape. Key sectors like transportation, logistics, agriculture, and the e-commerce sector also impact the market.

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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.

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 Asia Pacific region holds the largest share of The market, dr

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 0.7 and eight percent. In 2023, house prices appreciated by 0.7 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 number of residential property sales in South Africa decreased for the second year in a row in 2020, reaching approximately 51,100 home sales. The strongest year for the housing market was 2018, when roughly 65,400 home sales took place. Over the whole observation period, properties in the luxury market segment of over 1.2 million South African rands comprised the largest share of transactions.

Technological advancements in the South Africa Commercial Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

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.

Graph and download economic data for Residential Property Prices for South Africa (QZAN368BIS) from Q1 1967 to Q4 2024 about South Africa, residential, housing, and price.

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Wellness Real Estate Market Size 2025-2029

The wellness real estate market size is forecast to increase by USD 768.6 billion, at a CAGR of 20.2% between 2024 and 2029.

The rising demand for wellness real estate from the luxury residential sector is the key driver of the market. As affluent buyers seek healthier living environments, the increasing demand for regenerative living is emerging as a significant trend. This trend focuses on sustainable, restorative spaces that promote physical and mental well-being, incorporating elements like biophilic design, eco-friendly materials, and holistic amenities to enhance the quality of life for residents. Key factors contributing to this trend include the rising awareness of health and wellness, the desire for work-life balance, and the growing popularity of sustainable and eco-friendly practices.
However, the market faces stiff competition, with numerous players vying for market share. To stay competitive, industry players must focus on offering unique and innovative features that cater to the evolving needs and preferences of consumers. In summary, the market is poised for continued growth, fueled by the increasing demand for properties that prioritize mental health and well-being, while also facing competition from a crowded marketplace.

What will be the Size of the Wellness Real Estate Market During the Forecast Period?

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The wellness movement has significantly influenced residential real estate, leading to the emergence of wellness communities that prioritize environmental sustainability and health outcomes. These communities cater to various demographics, including affluent foreign tourists, senior corporates, and urban youths, in metros and non-metros alike. The focus on personal investment in wellness and expenditure on healthier lifestyles has fueled the demand for properties that offer access to outdoor yoga studios, medicinal gardens, meditation courtyards, and eco-friendly homes. The culinary movement and design-driven movement have also played a role in this trend, with an increasing preference for properties that prioritize healthy eating and aesthetics. 
The green building movement is another significant factor driving the growth of the market. Buildings that prioritize safety, sanitation, and energy efficiency are in high demand. The importance of building safety, especially in the aftermath of natural disasters and pandemics, has become increasingly apparent. Traditional boundaries between urban and rural areas have blurred, with scenic hill stations, picturesque foothills, and lush green valleys becoming popular destinations for those seeking a healthier lifestyle.
Secluded sea beaches offer a similar appeal, providing residents with a tranquil environment conducive to relaxation and rejuvenation. The luxury sector has also embraced the wellness movement, with high-end developments offering top-notch healthcare services, ensuring the safety and well-being of residents. Urbanism, too, is evolving to accommodate the needs of health-conscious individuals, with a focus on creating sustainable, walkable communities that prioritize green spaces and public health. In conclusion, the wellness movement has transformed the residential real estate market, with a growing demand for properties that prioritize health outcomes, environmental sustainability, and personal well-being. This trend is expected to continue, with various demographics seeking properties that cater to their unique needs and preferences.

How is the Wellness Real Estate Market Segmented?

The market 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.

End-user

  Commercial
  Residential


Wellness Features

  Physical wellness
  Meditation Room
  Nutritional wellness
  Environmental wellness


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  Middle East and Africa

    UAE


  South America

    Brazil

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. The market in the commercial sector is experiencing notable expansion, driven by an increasing number of wellness commercial pipeline projects and the development of wellness communities. This growth is evident in various sectors, including commercial real estate, offices and workplaces, public buildings, hospitality developments, and medical facilities. Factors contributing to this trend include the rise in energy-efficient technologies and regulatory mandates promoting renovation and modernization activities. Wellness communities, which prioritize connection

The prices for the cheapest newly built housing in two African countries, Sudan and South Sudan, exceeded 90,000 U.S. dollars in 2024. In the Seychelles, the price of the most affordable housing was about 52,363 U.S. dollars. Nigeria, Kenya, and Egypt all had house prices under 10,000 U.S. dollars.

Graph and download economic data for Residential Property Prices for South Africa (QZAN628BIS) from Q1 1966 to Q4 2024 about South Africa, residential, HPI, housing, price index, indexes, and price.

The Residential Real Estate Market, valued at USD 59194.55 million in 2025, is anticipated to grow at a CAGR of 25.20% during the forecast period (2025-2033), reaching a value of USD 302911.44 million by 2033. Rapid urbanization, rising disposable income, and increasing population are some key factors driving the market's growth. The market is expected to witness a surge in demand for affordable and luxury housing options due to the growing middle class and affluent population in emerging economies. Regional insights indicate that Asia Pacific dominated the market with a share of 41.2% in 2025, owing to strong economic growth in countries like China, India, and Japan. North America and Europe are other prominent regions, contributing significantly to the market's revenue. However, the Middle East & Africa and South America are expected to experience substantial growth in the coming years, driven by government initiatives to promote homeownership and the development of new residential projects. With a dynamic and ever-evolving landscape, the residential real estate market is a significant driver of economic growth and stability worldwide. This report provides an in-depth analysis of the market, highlighting key trends, challenges, and growth opportunities. Recent developments include: May 2023 KKR's European real estate platform acquired a portfolio of 30 residential properties. This acquisition marks KKR's first investment in the Nordic region through its European Core Plus Real Estate strategy and reflects its focus on the growing residential market in Europe., January 2023 Blackstone completed its acquisition of Home Partners of America, a leading single-family rental (SFR) platform, for $6 billion. This acquisition significantly expands Blackstone's presence in the SFR market, which is expected to be a major growth driver in the US residential real estate sector., December 2022 Independence Realty Trust acquired Steadfast Apartment REIT for $4 billion. This acquisition further consolidates the apartment REIT sector and creates a larger platform with a more diversified portfolio.. Notable trends are: Population growth is driving the market growth.

Key information about House Prices Growth

• South Africa house prices grew 7.3% YoY in Nov 2016, following an increase of 6.5% YoY in the previous month.
• YoY growth data is updated monthly, available from Jan 1967 to Nov 2016, with an average growth rate of 10.5%.
• House price data reached an all-time high of 41.5% in May 1981 and a record low of -9.0% in Jul 1985.

Residential properties under 300,000 South African rands comprised the largest share of the residential stock in South Africa in 2021. According to the source, there were over 2 million of these entry market properties. The affordable market segment refers to housing in the 300,000 to 600,000 South African rands price range, whereas properties up to 900,000 South African rands are considered part of the conventional market segment. High-end and luxury housing, on the other hand, is housing in the 900,000 to 1.2 million South African rands price range and over 1.2 million South African rands, respectively.

In 2020, there were approximately 237,000 housing transaction in South Africa, with resales accounting for the lion's share of the market. Most purchases of newly built homes were financed through a mortgage loan, whereas for existing homes it was the other way around.

South Africa Real Avg Monthly Earnings: Dec2016 Prices: IB: Financial Intermediation, Insurance, Real Estate and Business Services data was reported at 20,630.000 ZAR in May 2018. This records a decrease from the previous number of 20,819.000 ZAR for Feb 2018. South Africa Real Avg Monthly Earnings: Dec2016 Prices: IB: Financial Intermediation, Insurance, Real Estate and Business Services data is updated quarterly, averaging 20,306.000 ZAR from May 2015 (Median) to May 2018, with 13 observations. The data reached an all-time high of 21,242.000 ZAR in Nov 2017 and a record low of 19,610.000 ZAR in May 2016. South Africa Real Avg Monthly Earnings: Dec2016 Prices: IB: Financial Intermediation, Insurance, Real Estate and Business Services data remains active status in CEIC and is reported by Statistics South Africa. The data is categorized under Global Database’s South Africa – Table ZA.G023: Nominal and Real Average Monthly Earnings: 2016 Business Sampling Frame.

South Africa ZA: Price to Income Ratio: sa data was reported at 90.320 2015=100 in 2024. This records a decrease from the previous number of 92.422 2015=100 for 2023. South Africa ZA: Price to Income Ratio: sa data is updated yearly, averaging 98.221 2015=100 from Dec 1995 (Median) to 2024, with 30 observations. The data reached an all-time high of 132.663 2015=100 in 2007 and a record low of 71.323 2015=100 in 1997. South Africa ZA: Price to Income Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s South Africa – Table ZA.OECD.AHPI: House Price Index: Seasonally Adjusted: Non OECD Member: Annual. Nominal house prices divided by nominal disposable income per head. Net household disposable income is used. The population data come from the OECD national accounts database.