2024 Property Market Predictions
Don’t be fashionably late to the Real Estate Party! 2024 is going to be a very exciting time for homeowners, as the tide is turning and so is South Africa’s property market.
South Africa is beginning to see signs of growth within the real estate market. This potential is expected to drive positive sentiment, bringing commitment and confidence back to the property market.
The following predictions are on the horizon for the property market in 2024 as per significant key factors:
> Interest rates are on the decline:
Interest rates are likely to start declining in the coming months and should continue to do so into 2025. This will lead to an improvement in consumer sentiment and buyer enthusiasm. South Africa should start seeing more investor buyers coming back into the market as finance will be cheaper allowing for better returns.
In the last couple of years, the market has seen many buyers holding off on taking the big step into home ownership, opting to rent instead. With interest rates easing, many hesitant first-time buyers will soon be able to afford to buy their dream homes. This is very good news for buyers!
> Geo-political situation:
With the world in turmoil, South Africa’s socio-economic issues seem like less of a deterrent than before. Emigration and semigration have slowed down, and many expats are now returning home.
More businesses requiring employees back to the office, areas situated nearer to work and to both top private and public schools, hospitals etc. will remain high in demand. Good news for sellers.
New entrants into the job market will have a positive spin-off for investment buyers as demand for rentals should also start to increase, providing decent yields which have not been seen for a few years.
> Elections are the big talk point:
While we can’t predict the outcome of the upcoming national elections, the results are sure to usher in some critical shifts in power. These will have short-term effects on the property market, and longer-term effects on the South African economy. The upside of this uncertainty? Civil sentiment is quickly shifting towards positive outcomes emanating from political changes.
> Infrastructure & costs:
Suburbs seem to go through short-term pain for long-term gain, with infrastructure upgrades taking place. The private sector also seems to be stepping up with initiatives to improve our communities.
Home owners has taken power cuts & poor infrastructure into their own hands, installing solar/backup power solutions, boreholes & water storage tanks including rainwater harvesting, reducing their reliance on municipal services while increasing their use and enjoyment of their homes.
Reducing reliance on the grid has its costs but also its benefits. The grass may seem greener but there is no utopia anywhere in the world.
> Stock levels are on the decline:
This bodes very well for our sellers and with the interest rates indicating that South Africa is heading back towards interest rates levels of between 9.5-10,25% , it seems that the market is shifting again to a sellers market. There remains much that needs to happen before a complete shift from buyer to a sellers market, but the indications are pointing in this direction.
> Value for money & quality of life:
Property prices are currently at an affordable level, offering great value for money and a lifestyle that is not easily replicated anywhere in the world.
The property cycle always turns. 2024 is expected to bring growth in the property market across both the freehold and sectional title segments. The time to buy is sooner rather than later.
Buyers, it is key to get your ducks in a row by getting pre-qualified for a bond. Executive Real Estate can assist you with a free pre-qualification, powered by MultiNET!
Save up for your Bond and transfer costs, so that when the right home comes to market, you are ready to strike.
Contact your property experts, Executive Real Estate! We are always at your service to assist you in all of your property needs.
Source: As per Property 24 article > 2024 property market predictions: Key factors revealed 01.02.2024