Key regions: Japan, China, Australia, Germany, United States
The Residential Real Estate Leases market in South Africa has been experiencing significant growth in recent years.
Customer preferences: One of the main reasons for this growth is the increasing demand for rental properties in the country. Many South Africans are opting to rent rather than buy homes due to various factors such as affordability, flexibility, and the desire to avoid the responsibilities of homeownership. Additionally, there is a growing trend among young professionals and millennials to prioritize experiences and mobility over long-term commitments, making rental properties an attractive option.
Trends in the market: The Residential Real Estate Leases market in South Africa is also being influenced by the trend of urbanization. As more people move to cities in search of better job opportunities and a higher standard of living, the demand for rental properties in urban areas has increased significantly. This trend is expected to continue as urbanization rates in South Africa are projected to rise in the coming years. Another trend in the market is the growth of the short-term rental sector, driven by platforms such as Airbnb. Many property owners are capitalizing on the tourism industry by renting out their properties to travelers, which has created a new source of income for homeowners. This trend has also contributed to the overall growth of the Residential Real Estate Leases market in South Africa.
Local special circumstances: South Africa has a unique set of circumstances that have influenced the development of the Residential Real Estate Leases market. One of these is the legacy of apartheid, which has resulted in significant income inequality and a shortage of affordable housing. As a result, many South Africans are unable to afford homeownership and are forced to rent instead. Another factor is the high rate of unemployment in the country. With a large portion of the population unable to secure stable employment, renting provides a more flexible and affordable housing option. Additionally, the lack of access to credit and the stringent requirements for obtaining a mortgage loan have also contributed to the preference for renting in South Africa.
Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in South Africa is also influenced by underlying macroeconomic factors. The country has experienced sluggish economic growth in recent years, which has resulted in limited job opportunities and lower disposable incomes for many individuals. This has made it more difficult for people to afford homeownership, leading to an increased demand for rental properties. Furthermore, the uncertainty surrounding the country's political and economic climate has also contributed to the growth of the rental market. Many individuals are hesitant to make long-term commitments such as buying a home in such an uncertain environment, leading them to opt for rental properties instead. In conclusion, the Residential Real Estate Leases market in South Africa is growing due to increasing customer preferences for rental properties, the trend of urbanization, the growth of the short-term rental sector, local special circumstances such as income inequality and unemployment, and underlying macroeconomic factors such as sluggish economic growth and political uncertainty.
Data coverage:
Figures are based on total and average revenue of residential apartment leases.Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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