The Real estate industry is continually fluctuating, depending on the economic outlook of consumers. According to real estate company Private Property, “the banks are still granting bonds and people are still investing in property on a grand scale”.
Economists have warned that if the country is downgraded to junk status, access to finance will become more expensive and interest rates will soar.
The ongoing trend will also be towards investment in mixed-use developments; while there will also be a transition towards “green” and sustainable living.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty has said:
“2017 is going to be a tough year for the residential property industry as political uncertainty and a flat economy squeezes consumers further and subdues an already depressed market.”
Real estate investment trends indicate that first-time buyers will still want to acquire a foothold on their own homes. Buyers will need to ensure that their credit records remain spotless if they intend to apply for finance.
More real estate investment trends for 2017:
The Cape is likely to remain busier that the rest of South Africa, while Gauteng has been able to expand outwards in order to meet housing demand.
The province of KwaZulu-Natal is experiencing a modest rebound and Nelson Mandela Bay has become the third highest performing metro area in South Africa.
Houses with boreholes are set to become even more attractive than those with pools. Pools are considered more expensive to maintain, so properties with pools are expected to see a downward trend.
Fibre in the home is another growing sales point. Areas where fibre is fully installed will be in high demand. As the rollout of fibre continues to spread across the country, properties in these areas are set to become more attractive to home buyers.