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 (QZAN628BIS) from Q1 1966 to Q2 2025 about South Africa, residential, HPI, housing, price index, indexes, and price.

Residential Property Prices in South Africa increased 6.10 percent in May 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 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).

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

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.

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 positive trajectory is fueled by several key factors. Increasing urbanization, coupled with a growing middle class and a demand for improved housing infrastructure, are driving significant demand. Government initiatives aimed at affordable housing and infrastructure development further contribute to market expansion. Furthermore, favorable interest rates and innovative financing options are making homeownership more accessible to a wider segment of the population. However, the market faces challenges, including economic instability, fluctuating interest rates, and concerns around property security in certain areas. These factors necessitate careful market analysis and strategic planning by investors and developers. Despite these challenges, the market demonstrates resilience. Leading developers like Reeflords, Renprop (Pty) Ltd, Pam Golding Properties, The Amdec Group, Kaan Development, Pipilo Projects, Devmark Property Group, RDC Properties, Harcourts International Ltd, and Legaro Property Development are actively shaping the market landscape, contributing to both luxury and affordable housing segments. The long-term outlook remains positive, with projections indicating substantial growth throughout the forecast period. The market's dynamism highlights the need for ongoing monitoring of economic indicators, regulatory changes, and evolving consumer preferences to effectively navigate the opportunities and risks presented within the South African residential real estate sector. Key drivers for this market are: 4., Growing urbanisation in the countries4.; Increasing support of private sector to meet infrastructural growth in various sectors such as water, energy, transportation, and communications. Potential restraints include: 4., Lack of quality and quantity of infrastructure. Notable trends are: Increasing Demand for Sectional Title Living in South Africa.

Cape Town was the most expensive metro to buy a home in South Africa in 2024. The average sales price of residential property was 1.9 million South African rands in that year, which was roughly double the price paid in Port Elizabeth.

Housing Index in South Africa increased to 120.30 points in May from 119.70 points in April of 2025. This dataset provides - South Africa Housing Index- actual values, historical data, forecast, chart, statistics, economic calendar and news.

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

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

South Africa Real Estate and Smart Housing Market valued at USD 25 Bn, driven by urbanization, smart tech, and government initiatives for sustainable housing.

Real residential property prices Y-on-Y, percent change in South Africa, June, 2025 The most recent value is 0.43 percent as of Q2 2025, an increase compared to the previous value of -1.23 percent. Historically, the average for South Africa from Q1 1990 to Q2 2025 is 1.69 percent. The minimum of -15.09 percent was recorded in Q3 2008, while the maximum of 33.27 percent was reached in Q3 2004. | TheGlobalEconomy.com

This statistic shows the growth in prime property market in Cape Town, South Africa in 2018. Between June 2017 and June 2018, the luxury property market grew by *** percent in Cape Town, South Africa.

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?

Get Key Insights on Market Forecast (PDF) Request Free Sample

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.

Request Free Sample

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

Request Free Sample

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

South Africa Commercial Property Market size was valued at USD 9.27 Billion in 2024 and is projected to reach USD 16.06 Billion by 2032, growing at a CAGR of 7.60% from 2026 to 2032.

South Africa Commercial Property Market Drivers

Urbanization and Population Growth: Increasing migration to urban centers drives demand for office spaces, retail establishments, and industrial facilities. E-commerce Boom: The growth of online shopping necessitates more logistics and warehousing facilities. Government Infrastructure Development: Investments in infrastructure projects enhance the attractiveness of the market for investors. Foreign Direct Investment: Influx of foreign capital indicates global confidence in the long-term prospects of the sector. Demand for Flexible Workspaces: The rise of co-working spaces caters to the evolving needs of businesses. Increased Technology Integration: Adoption of PropTech solutions and smart building technologies enhances efficiency and tenant experiences.

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.

In South Africa Prefabricated Housing Market is projected to grow from USD 21.5 billion in 2025 to USD 38.6 billion by 2031, at a CAGR of 10.1%

The average sales price for residential properties in South Africa has increased steadily since 2015. In 2024, the average home sold for well over *********** South African rands.