Residential Real Estate Leases - Southern Africa

Southern Africa

Highlights

Market definition

In-Scope/Out-of-scope

Market structure

Reports

Methodology

The Southern Africa region is expected to witness significant growth in the Residential Real Estate Leases market market.
By 2025, the market revenue is projected to reach a staggering US$58.56bn.
House Leases will dominate this market segment, with a projected market volume of US$40.28bn in the same year.
Furthermore, the market is expected to display a promising annual growth rate (CAGR 2025-2029) of 2.32%.
Based on this growth rate, the market volume is estimated to reach US$64.18bn by 2029.
These numbers indicate a positive outlook for the Residential Real Estate Leases market market in Southern Africa.
The demand for residential real estate leases in Southern Africa is steadily increasing due to urbanization and population growth.

Overview

Volume

Real Estate Volume

Most recent update: Jul 2024

Source: Statista Market Insights

The Residential Real Estate Leases market in Southern Africa is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Residential Real Estate Leases market in Southern Africa are shifting towards rental properties for various reasons. One of the main factors driving this preference is the flexibility that renting offers. Many individuals and families in Southern Africa are opting to rent rather than buy a property due to the ability to easily relocate for work or personal reasons. Additionally, renting provides a more affordable option for those who may not have the financial means to purchase a home. Trends in the market further support the growth of the Residential Real Estate Leases market in Southern Africa. One notable trend is the increase in demand for rental properties in urban areas. As cities in Southern Africa continue to grow and attract more people, the demand for housing in these areas also rises. This trend is driven by factors such as job opportunities, access to amenities, and a desire for a vibrant urban lifestyle. As a result, real estate developers are focusing on building rental properties in these urban centers to meet the growing demand. Local special circumstances also play a role in the development of the Residential Real Estate Leases market in Southern Africa. One such circumstance is the prevalence of informal settlements in many parts of the region. These settlements often lack basic infrastructure and services, making them undesirable for potential homeowners. As a result, individuals and families in these areas are more likely to opt for rental properties in formal housing developments. Underlying macroeconomic factors contribute to the growth of the Residential Real Estate Leases market in Southern Africa as well. Economic stability and growth in the region have led to an increase in disposable income for many individuals. This, in turn, has fueled demand for rental properties as people are able to afford the monthly rental payments. Additionally, low interest rates in the region make it more attractive for investors to finance rental properties, further driving the growth of the market. In conclusion, the Residential Real Estate Leases market in Southern Africa is experiencing significant growth and development. Customer preferences for flexibility and affordability, along with trends in urbanization, drive the demand for rental properties. Local special circumstances, such as the prevalence of informal settlements, also contribute to the growth of the market. Underlying macroeconomic factors, including economic stability and low interest rates, further support this positive trajectory.

Revenue

Lease Income

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jul 2024

Source: Statista Market Insights

Average Revenue per Lease

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jul 2024

Source: Statista Market Insights

Methodology

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.

Finance

Access more Market Insights on Finance topics with our featured report

This report presents a comprehensive analysis and additional information on the Finance market, in a PDF format.

Get the report

Key Market Indicators

Population

Households

Gross Domestic Product (GDP)

Finance

Exchange Rates

Notes: Based on data from IMF, World Bank, UN and Eurostat

Most recent update: Jan 2025

Source: Statista Market Insights

Explore more high-quality data on related topic

Global housing market - statistics & facts

The global housing market landscape has undergone dramatic challenges in recent years, including declining transactions, slowing price growth, and worsening affordability. In most OECD countries, the gap between household incomes and property values has widened notably over the last decade, while soaring mortgage rates have curbed mortgage borrowing. Established housing markets such as Hong Kong, Germany, France, and the United Kingdom saw house prices decline in the first quarter of 2024. On the other hand, Turkey, Russia, and the United Arab Emirates recorded double-digit growth.

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.