South African's are no strangers to unfavourable economic conditions paired with adversity in the market. Recent fuel hikes and continuous price increases of basic goods, loadshedding stresses seem to be the last thing we need. And this, all in a year of a global pandemic.
Despite all these unpredictable factors influencing our lifestyle and budget choices, 2021 was a fantastic year for real estate. This is largely due to a record low-interest rate, but there is something else fuelling great market conditions. South Africans ability to look beyond the immediate, especially when it comes to buying property.
Unfortunately, all of these hurdles will undoubtedly start impacting the market, and our long term outlook. Loadshedding dampens spirits and forces us to tighten our belts, whilst simultaneously affecting overall productivity and macroeconomic elements of the country.
Although there are trends showing buyers in a certain demographic gravitating toward homes with alternative power sources and green energy, it certainly, at this stage anyway, is not the most common route as a minimal percentage of properties on the market are equipped with these technologies.
So, with that being said, we know loadshedding is going to be with us for the foreseeable future. It is something we are going to learn to live with to a certain extent. It will definitely impact the real estate market, we will see trends of families moving to developments with gas installations and other smart-home solutions, or to estate living that offers security for people who feel unsafe during several hours of darkness.
Whatever the impact, real estate will continue to do well and grow, because even with all the difficulties we face, South Africa is an emerging economy drowning in potential.
Statement by
Richard Gray
Harcourts South Africa CEO