Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Johannesburg's property market is included in our pack
What is happening in Johannesburg’s real estate market? Are prices on the rise or decline? Is Sandton still a prime location for investors? How are local government policies shaping real estate dynamics in 2025?
These are the questions we hear daily from professionals, buyers, and sellers across Johannesburg, from Soweto to Rosebank and beyond. You might be curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Johannesburg real estate market every day. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Foreign buyers will target properties in secure, gated communities due to safety concerns
Johannesburg has seen a worrying rise in violent crimes, making safety a top concern for potential property buyers.
With an average of 70 murders per day, many foreign buyers are now looking at properties in gated communities. These areas are seen as safe havens, offering a level of security that is highly appealing to those investing in Johannesburg's real estate market.
Real estate reports show that secure estates are particularly popular among expatriates. Safety is a major factor for foreign buyers, and the demand for gated communities reflects this priority.
Surveys reveal that security is the primary concern for foreign buyers when choosing a property in Johannesburg. The media's focus on crime in the city often discourages buyers from considering less secure areas, further boosting the appeal of gated communities.
Testimonials from foreign buyers highlight how safety concerns directly influence their property choices. These personal accounts reinforce the trend towards choosing secure living environments.
Sources: BusinessTech, Excellerate Services, SAPS, Statista
2) Outer suburbs will see slower price growth than central areas due to lower immediate demand
Property prices in central areas like Sandton and Johannesburg CBD are rising faster than those in the outer suburbs.
Central areas are buzzing with activity, and that's where the action is. Young professionals and families are flocking to places like Sandton and Fourways, driving up demand and prices. This trend is fueled by a significant increase in population density, with central Johannesburg seeing a 28.9% rise in overall density between 2001 and 2009.
Why the rush to the center? Well, it's all about convenience. Infrastructure development is heavily focused on central areas, making them more appealing. Urban regeneration projects are breathing new life into neighborhoods like the Johannesburg CBD, making them hotspots for buyers.
People want to be close to work and amenities, and central locations offer just that. Government investment in revitalization projects is making these areas even more attractive. The concentration of economic activities in the center is another big draw, adding to the allure of living in the heart of the city.
In contrast, the outer suburbs are experiencing a slower pace. Price increases are more modest or even stabilizing in these areas. The demand isn't as immediate, and the focus of development isn't as intense, leading to a more laid-back market.
Sources: Johannesburg Price Forecasts, Property24, OpenEdition Books
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Rents in affordable segments will rise significantly due to high demand and limited availability
Johannesburg's affordable rental market is heating up as prices continue to rise.
People are flocking to cities like Johannesburg, chasing better job prospects, which is pushing up the demand for affordable rentals. This isn't just happening here; Cape Town is feeling the squeeze too as more folks move in. The city's vibe and opportunities are a big draw, but they also mean more competition for places to live.
One big issue is that new affordable housing isn't being built fast enough. This shortage is making it tough for people to find places to rent, and it's driving prices up. With fewer options, vacancy rates are low, and many are spending a big chunk of their income just to keep a roof over their heads.
Demographics are shifting, with more people heading to urban areas. Middle-income families are feeling the pressure, especially in spots like Soweto, where affordable rentals are still within reach for lower-income tenants. The job market is a big factor here, as people need to be close to work, and that means finding a place they can afford.
In Gauteng, there's been a modest 3.6% year-on-year increase in residential rentals, showing that demand is outpacing supply. This trend is particularly noticeable in affordable segments, where the competition is fierce, and options are limited.
As the city grows, the need for affordable housing becomes more urgent. Without new developments, the market struggles to keep up, leaving many renters in a tough spot. The pressure is on, and it's clear that affordable rental segments will see significant rent hikes due to high demand and limited availability.
Sources: Everything Property, UWC Scholar, Novogradac, Real Estate Market Data, Developing Economics
4) New zoning laws will boost mixed-use developments, enhancing the appeal of certain neighborhoods
Changes in zoning laws are making mixed-use developments more popular in certain neighborhoods.
In 2023, Johannesburg's zoning laws were updated to support these developments, with the Joburg Property Company releasing a prospectus for 97 properties aimed at mixed-use projects, valued between R20 billion and R25 billion. This move is setting the stage for a transformation in urban living. The Soweto Gateway Project, approved for a long-term development sale and lease agreement by 2024, will incorporate commercial, retail, mega housing, and public amenities. This project alone is expected to attract an investment of R3.2 billion, showcasing the potential for economic growth and community development.
Properties within mixed-use developments are seeing rising values due to their accessibility to amenities and the vibrant environment they create. Demographic studies indicate a preference for urban living, especially among millennials and urban professionals who value convenience. Surveys from 2023-2024 highlight a strong preference for walkable neighborhoods, a key feature of mixed-use developments.
These developments are not just about convenience; they are reshaping the way people live and work. The increased number of approved mixed-use projects during 2023-2024 reflects a growing trend towards these versatile urban spaces. The appeal lies in the blend of residential, commercial, and recreational spaces, making life more integrated and efficient.
For potential property buyers, this means more options in vibrant, well-connected areas. Mixed-use developments offer a lifestyle that combines work, leisure, and community, all within walking distance. This trend is particularly attractive to those who prioritize sustainability and reduced commuting times.
Sources: JPC Investment Release, JPC Mid-Term Report, ValueSafe Appraisals
5) Eco-friendly homes will become more popular as buyers grow environmentally conscious
Eco-friendly homes are on the rise as people become more environmentally conscious.
In Johannesburg, there's a noticeable shift towards sustainability, with over 1,260 green building certifications awarded by 2024. This surge highlights a growing commitment to eco-friendly housing. Companies like BioBuild are at the forefront, experiencing increased demand for their sustainable building materials, which help cut down CO₂ emissions and offer innovative recycling solutions for wood waste.
Consumer surveys reveal a strong preference for sustainable living, driven by advancements in technology and a desire for comfort. Mixed-use developments, such as Steyn City, are becoming popular as they blend living, working, and recreational spaces, catering to diverse buyer needs. The buzz around eco-friendly homes is amplified by media and social media, further fueling interest.
Government incentives and stricter environmental regulations are nudging builders towards sustainable practices. With energy costs on the rise, homebuyers are increasingly looking for energy-efficient homes equipped with technologies like solar panels. This trend is evident in real estate market reports, which show a growing interest in eco-friendly properties.
Sources: B2B Central, BioBuild, JHB Property, Miami Daily Life
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6) Young professionals will boost demand for smaller, centrally located apartments by moving to urban areas
Young professionals are flocking to urban areas like Johannesburg in recent years.
This trend is largely fueled by the rise of remote work, with 65% of tech firms now offering remote options. Johannesburg stands out with its solid tech infrastructure, including fast internet and a growing number of co-working spaces, making it a prime spot for remote workers.
As these young professionals settle in urban centers, there's a noticeable uptick in demand for smaller, centrally located apartments. In Johannesburg, the apartment market is projected to see rent growth between 2.6% and 4.8% by 2025, highlighting the strong need for rental housing in central areas.
These central locations are appealing because they offer easy access to amenities and job opportunities, which are essential for young professionals. The convenience of urban living aligns with their lifestyle preferences, as shown in the GenNext Youth Behaviour Report 2023.
According to the report, young professionals aged 25-30 in South Africa have a strong preference for urban living. This is driven by their desire for better connectivity and lifestyle amenities, which urban areas are well-equipped to provide.
The flexibility of remote work allows them to choose urban living without the burden of long commutes, making cities like Johannesburg even more attractive. This shift is reshaping the housing market, with a clear impact on the demand for smaller, centrally located apartments.
Sources: ResearchAndMarkets.com, NAAHQ, Nucamp
7) Midrand properties will attract attention as it evolves into a central business district between Johannesburg and Pretoria
Midrand is quickly becoming a central business district between Johannesburg and Pretoria.
One of the biggest attractions is the massive Waterfall Development, a project worth around R100 billion. By 2027, it will feature 28,000 residential units and 1.6 million square meters of commercial and office space. This development is a magnet for both businesses and residents, promising a vibrant mix of living and working spaces.
For those looking to invest, Midrand's property market offers great value for money. As the area continues to grow, this trend is likely to persist. The presence of the Gautrain station has also played a crucial role, boosting development and making Midrand a potential hub for future investments.
Big names like Nike SA, Deloitte, and BMW have already set up their head offices in Midrand. This shows a strong business interest in the area, with office vacancy rates dropping as demand for space rises. It's clear that Midrand is on the path to becoming a major business hub.
With its strategic location and ongoing developments, Midrand is poised to attract even more attention. The combination of residential and commercial growth is creating a dynamic environment that appeals to both investors and businesses.
As more companies and residents flock to the area, Midrand's transformation into a central business district is becoming increasingly evident. The area's growth is supported by its infrastructure and strategic positioning, making it a prime spot for future developments.
Sources: Rawson Blog, WiredSpace, Property Awards
8) Virtual reality tours will become widespread, enabling buyers to view properties remotely and make informed choices
Virtual reality tours are becoming a staple in real estate, especially since 2023.
In Johannesburg, real estate agents are jumping on the VR bandwagon, with 71% of them using virtual tours to showcase properties. This isn't just a tech fad; properties with these tours get 40% more engagement from potential buyers. People love the idea of checking out homes from their couch or even from another country.
Thanks to advancements in VR, these tours are now more interactive and personal. The tech has become more accessible and affordable, which is a game-changer. In South Africa, the rise in internet access and smartphone use has made it easier for people to dive into VR experiences. This is especially handy for those working remotely or considering relocation, as they can view properties without the hassle of travel.
Imagine being able to walk through a house without leaving your living room. That's the power of VR in real estate today. It's not just about convenience; it's about making informed decisions without the pressure of in-person visits. This tech is reshaping how we buy homes, offering a new level of transparency and ease.
As more people work from home and consider moving to different areas, the demand for remote property viewing is skyrocketing. VR tours are meeting this demand head-on, providing a safe and efficient way to explore potential new homes. It's a win-win for buyers and sellers alike.
Sources: Globe Newswire, LandVault, EZ Real Estate Tools, No Triangle Studio
We have made this infographic to give you a quick and clear snapshot of the property market in South Africa. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Foreign buyers will increasingly target Johannesburg’s luxury market due to favorable exchange rates
Foreign buyers are increasingly interested in Johannesburg's luxury market thanks to favorable exchange rates.
In recent years, especially around 2023 and 2024, the South African Rand (ZAR) has seen fluctuations against major currencies. This has made it more appealing for international investors to snap up high-end properties in Johannesburg. When the local currency dips, real estate agencies notice a spike in inquiries and purchases from abroad. It's like a shopping spree for luxury homes, where buyers can enjoy Johannesburg's vibrant lifestyle and stunning properties without breaking the bank.
These favorable exchange rates mean that foreign buyers can acquire luxury homes with all the bells and whistles—think high-end finishes and spacious living areas—at prices much lower than in other major cities worldwide. Johannesburg offers a unique blend of urban sophistication and natural beauty, making it a hot spot for those looking to invest in luxury real estate.
Economic experts have pointed out that there's a clear link between exchange rate changes and foreign investment. When the ZAR weakens, it becomes a golden opportunity for foreign buyers to invest in Johannesburg's luxury properties. This trend is expected to keep going strong, drawing more international interest to the city's upscale market.
For those in the know, Johannesburg's luxury market is a hidden gem. The city offers a mix of modern amenities and cultural richness, making it an attractive destination for high-net-worth individuals. With the current exchange rates, it's like getting a first-class ticket to a world of luxury at economy prices.
Sources: Sotheby's Realty, Easy Equities, The African Investor
10) Demand for retirement-friendly properties with healthcare access will rise due to an aging population
South Africa's elderly population is expected to double by 2050, making retirement-friendly properties a hot commodity.
As people age, they often need more healthcare services, and many older South Africans report limitations in daily activities. This makes living near healthcare facilities a top priority for them. In Johannesburg, for instance, there's a growing trend of developing retirement communities that cater specifically to these needs.
These communities aren't just about housing; they offer features like gated communities and sectional title schemes, which are highly preferred by older adults. Being close to healthcare services is a key factor in choosing where to live, and Johannesburg is leading the way in this trend.
Real estate market analysis shows a clear demand for age-appropriate housing, especially in regions like the Western Cape and Gauteng. High average sales prices for retirement properties indicate that people are willing to pay a premium for homes that meet their needs as they age.
However, there's a catch: the availability of such homes is limited. This scarcity further emphasizes the need for more retirement-friendly developments. The demand is outpacing supply, making it a lucrative opportunity for developers.
So, if you're considering buying property in South Africa, keep an eye on these trends. Retirement-friendly properties with easy access to healthcare are not just a necessity but a growing market segment.
Sources: Property Wheel, CCH, Total Care SA
11) Properties with home office spaces will gain popularity as remote work remains widespread
In Johannesburg, prime office rents have dropped by 10% as more people embrace remote work.
This shift is reshaping the real estate market, with office vacancy rates climbing due to fewer people needing traditional office spaces. As companies expand their workforce, employees are increasingly seeking homes that can double as workspaces. This trend is particularly evident in South Africa, where remote work opportunities have surged since 2020.
Many employees now prefer flexible work arrangements, and 40.8% of them continue to work remotely. This preference is influencing the housing market, where listings frequently emphasize home office features. The demand for properties with dedicated workspaces is growing, as people look for homes that support their new work-life balance.
Even as some companies return to office-based work, the popularity of remote work persists. This ongoing trend is making home office spaces more desirable, especially in areas like Johannesburg. The real estate market is adapting, with more properties being designed or marketed to include these features.
For potential buyers, this means that properties with home office spaces are becoming a hot commodity. As remote work continues to be a significant part of the work culture, homes that offer these amenities are likely to see increased demand.
In summary, the shift towards remote work is not just a temporary change but a lasting trend that is reshaping the housing market. Properties that cater to this new way of working are becoming increasingly attractive to buyers.
Sources: Africa Offices Market Dashboard - Knight Frank, Is Remote Work Here to Stay in South Africa? - SME Tech Guru, 4 key factors driving recovery in SA's office market - Bizcommunity
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12) Demand for large family homes will drop as people choose smaller, low-maintenance properties
In Gauteng, including Johannesburg, household sizes have been shrinking over the years.
Back in 2022, the average household size was 2.8 people, down from 3.1 in 2011. This means fewer people are living together, which naturally reduces the need for large family homes. Rising property prices in Johannesburg have also made large homes less affordable for many. As prices continue to climb, people are looking for more budget-friendly options, often turning to smaller, low-maintenance properties that fit their financial situation better.
There's a growing trend towards urban living, where people prefer to be closer to amenities. This urban lifestyle often involves living in smaller, more efficient housing units. The increased population density in Gauteng, which rose by 18.7% between 2011 and 2022, supports this shift towards urban, smaller living spaces.
Moreover, the real estate market has shown a clear trend towards smaller properties. In the first quarter of 2024, while approvals for flats and townhouses dropped, their completions increased significantly by 38.9% year-over-year. This indicates a strong demand for smaller, more manageable homes.
In Johannesburg, rising property prices have made large homes less affordable for many. As prices continue to climb, people are looking for more budget-friendly options, often turning to smaller, low-maintenance properties that fit their financial situation better.
There's also a growing trend towards urban living, where people prefer to be closer to amenities. This urban lifestyle often involves living in smaller, more efficient housing units. The increased population density in Gauteng, which rose by 18.7% between 2011 and 2022, supports this shift towards urban, smaller living spaces.
Sources: Pam Golding Blog, Census 2022 for Gauteng, Global Property Guide
13) Property values will rise in areas with new Gautrain stations due to network expansion
The expansion of the Gautrain network is set to boost property values in areas with new stations.
Take Sandton and Midrand, for example. When their Gautrain stations opened, properties within 1 km saw an 87% price jump in just a year. This trend hints that new stations will likely have a similar effect on nearby property values.
Looking at the bigger picture, research from American cities shows that homes near transit stations often see value increases between 6% and 24%. So, Johannesburg might experience similar benefits with the Gautrain expansion.
There's also a massive investment from the Gauteng Provincial Government, pouring R120 billion into the Gautrain expansion. This isn't just about trains; it's about creating over 125,000 jobs, which will give the local economy a significant boost.
With this kind of economic activity, infrastructure development will naturally follow, further enhancing property values in areas with new stations. It's a cycle of growth that benefits everyone involved.
For those considering buying property, this expansion could mean a smart investment opportunity, as areas with new stations are likely to become more desirable and valuable.
Sources: Kathryn Arnold et al., 2015, SCIELO, 2014, MyBroadband, 2024
14) Fourways will see increased property interest with the expansion of commercial and retail spaces
Fourways is buzzing with new energy thanks to its expanding commercial and retail spaces.
The heart of this transformation is the revamped Fourways Mall, now the largest shopping center in South Africa. With an impressive addition of 90,000 square meters, it hosts popular stores like H&M and Food Lovers Market, drawing in both shoppers and businesses.
This expansion has led to a surge in foot traffic and consumer spending in the area. The mall has enhanced the shopping experience with better signage and reliable backup power, making it a go-to destination. Naturally, this influx of visitors is sparking more interest in nearby properties.
Johannesburg's commercial real estate market, including Fourways, is on an upswing. Economic indicators show that property prices and leasing activities are climbing, positioning Fourways as a hot spot for investment. The area's growing population further boosts demand for both commercial and residential properties.
For those considering property investment, Fourways offers a promising opportunity. The area's development is not just about retail; it's about creating a vibrant community that attracts people and businesses alike.
Sources: BusinessTech, Refrigeration and Aircon, Coastline Equity
We made this infographic to show you how property prices in South Africa compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Property demand in the West Rand will grow as more people opt for suburban living with city access
The West Rand is becoming a hot spot for those wanting suburban life with easy city access.
One big draw is the improved public transport, like the Nancefield to Johannesburg railway line, making city commutes a breeze. This convenience is a game-changer for many who work in Johannesburg but prefer a quieter home base.
As property prices in central Johannesburg climb, more buyers are looking for affordable alternatives in the suburbs. The West Rand offers larger homes without the hefty city price tag, making it a smart choice for those wanting more space for their money.
Families are particularly drawn to the area thanks to the growing number of schools and family-friendly amenities. This makes the West Rand not just a place to live, but a community where families can thrive.
Infrastructure is also on the up, with new road projects boosting the area's connectivity. These improvements, led by the Gauteng MEC for Roads and Transport, are part of a bigger plan to enhance smart mobility and regional growth.
With all these developments, the West Rand is set to see a rise in property demand as more people discover the perks of suburban living with city convenience.
Sources: Property24, Gauteng Government, PRASA, Jozikids
16) Smart home technology will become a major selling point for new developments in Johannesburg
In South Africa, smart home technology is booming.
Back in 2023, the Africa Smart Home Market was valued at USD 2.32 billion, and it's expected to grow to USD 8.63 billion by 2030. This rapid growth, with a projected annual increase of 20.7% from 2024 to 2030, highlights the increasing interest and investment in smart home solutions. Consumer demand for energy-efficient and automated home solutions has been on the rise. Around 50% of South African consumers have shown interest in integrating smart systems like lighting, security, and energy-efficient appliances into their homes. This trend aligns with a broader focus on sustainability, as people prioritize energy savings and enhanced security.
Moreover, real estate market reports have indicated that properties with smart features are in high demand and often command a premium. This is driven by the growing awareness of the benefits of smart home technology among consumers. As a result, property developers in Johannesburg are increasingly incorporating smart technology to attract buyers, using features like smart thermostats and solar panels to enhance home value. Properties with smart features are in high demand and often command a premium.
In Johannesburg, developers are catching on. They're adding smart thermostats and solar panels to new homes, making them more appealing to tech-savvy buyers. This isn't just about convenience; it's about adding real value to properties. Buyers are willing to pay more for homes that offer these modern conveniences.
For those considering buying property in the country, smart home features are becoming a must-have. They not only offer energy savings but also provide enhanced security and convenience. As more people become aware of these benefits, the demand for such homes is expected to rise even further.
So, if you're looking at properties in Johannesburg, keep an eye out for those with smart technology. It's a trend that's here to stay, and it could make a significant difference in your home's value and functionality.
Sources: NextMSC, KLA, Wise Move
17) Better road infrastructure will enhance suburban appeal, increasing demand in those areas
Improved road infrastructure can make suburban living more attractive by increasing property values.
Take Randburg, for instance, where property values have risen significantly due to infrastructure upgrades, with prices now ranging from R1 million to R3 million. This trend highlights how better roads can lead to higher property values, making suburbs more appealing to potential buyers. In fact, Randburg has consistently performed well in the real estate market, even during tough economic times, thanks to its robust infrastructure.
Another reason for the appeal is the increase in home sales in suburban areas following road improvements. This suggests that better roads can boost demand for homes in suburban areas, as people are more willing to invest in places with good infrastructure. Improved road infrastructure also reduces commute times, which is a big draw for suburban living.
The City of Johannesburg's investment in upgrading major highways like the Soweto Freeway, M1, and M2 is expected to improve mobility and reduce congestion. This means residents can enjoy shorter commutes, making suburban areas more attractive for those who work in the city. Imagine cutting your daily travel time significantly, allowing for more leisure or family time.
In certain areas, the migration patterns of potential homeowners have shifted, indicating changes in preferences due to these infrastructure improvements. This trend is particularly notable in suburban areas, where improved roads are playing a crucial role in making these locations more desirable. The ripple effect of these upgrades is evident in the increased interest and investment in suburban properties.
Sources: SARF, BusinessTech, Seeff
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.