South Africa: property market expected to suffer a challenging 2024

The South African real estate market is anticipated to encounter another demanding year due to the pressure from elevated interest rates and the rising cost of living, leading to constraints on buyer affordability.?

?While there are no projections for an increase in interest rates in 2024, the existing high rates are anticipated to persist throughout much of the year.?

The anticipated decrease in the number of eligible buyers for home loans suggests that sellers will need to adopt a strategic approach to pricing their properties.?

?Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa, highlights that affordability challenges are expected to persist, resulting in a smaller-than-usual pool of potential buyers in the coming year.?

?To navigate this scenario successfully, Goslett advises sellers to heed the guidance of their chosen real estate professionals and set fair prices for their homes to attract buyers in 2024.?

Nevertheless, Goslett emphasizes that individual suburbs will exhibit distinct trends, with certain areas experiencing higher demand than others.?

Another enduring trend anticipated for this year is the investment in back-up power and water solutions, driven by growing homeowner frustration with service delivery failures nationwide. Sellers should be mindful of this aspect when navigating the real estate market.?