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Residential Real Estate Transactions - Southern Africa

Southern Africa

In Southern Africa, the market segment for Residential Real Estate Transactions market is anticipated to witness significant growth.
It is projected that by 2025, the transaction value of this market will reach US$7.05bn.
Looking ahead, the market is expected to exhibit a steady annual growth rate (CAGR 2025-2029) of 1.76%.
This growth trajectory is likely to lead to a substantial increase in the market volume, with an estimated value of US$7.56bn by 2029.
In South Africa, the residential real estate market is experiencing a surge in demand due to a growing middle class and increased urbanization.

Key regions: Germany, Europe, Asia, United States, United Kingdom

Market

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Region comparison

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Analyst Opinion

The Residential Real Estate Transactions market in Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly looking to invest in residential real estate properties. This is driven by various factors such as the desire for homeownership, the need for rental income, and the potential for capital appreciation. Additionally, there is a growing trend of international buyers looking to invest in the region, attracted by the relatively affordable property prices and the potential for high returns on investment.

Trends in the market: One of the key trends in the residential real estate transactions market in Southern Africa is the increasing demand for urban properties. As cities in the region continue to grow and attract more people, there is a higher demand for housing in urban areas. This has led to the development of new residential projects and the revitalization of existing neighborhoods. Additionally, there is a growing interest in properties with modern amenities and sustainable features, reflecting the changing preferences of buyers. Another trend in the market is the rise of online property platforms and digital marketing. Buyers and sellers are increasingly using online platforms to search for properties, compare prices, and connect with real estate agents. This has made the process of buying and selling properties more efficient and accessible, leading to increased transaction volumes in the market.

Local special circumstances: Southern Africa is a diverse region with different countries experiencing unique local circumstances. In some countries, there may be government initiatives to promote affordable housing and increase homeownership rates. This can create opportunities for both local and international buyers to invest in residential properties. However, there may also be challenges in the market, such as limited access to financing and a lack of affordable housing options in certain areas. These factors can impact the affordability of properties and limit the growth potential of the market.

Underlying macroeconomic factors: The development of the residential real estate transactions market in Southern Africa is influenced by various macroeconomic factors. Economic growth, population growth, and urbanization are key drivers of demand for residential properties. As the region continues to experience economic development and urbanization, the demand for housing is expected to increase. Additionally, interest rates, inflation, and government policies can impact the affordability and attractiveness of residential properties. Low interest rates and stable inflation can make financing more affordable, while government policies that support the real estate sector can stimulate investment and growth. Overall, the residential real estate transactions market in Southern Africa is experiencing growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As the region continues to evolve, there will be opportunities for both buyers and sellers in the residential real estate market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

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.