After difficult years and modest returns, South Africa’s real estate market is beginning to show signs of recovery despite ongoing structural challenges and regional disparities. This situation has led buyers to question the value of investing in property in the country.
Harry Scherzer, CEO of FutureForex, believes that real estate represents security and wealth for South African families rather than just an investment. However, he noted that recent years have tested this idea due to rising interest rates, a weak rand, and demographic shifts across provinces.
For property buyers, the key question is how suitable an investment is for their circumstances compared to global real estate markets. Between 2020 and 2025, property prices rose by an average of 38% nominally, but after adjusting for inflation, gains barely exceeded 1% annually in 2023 and 2024.
The most notable improvement occurred in 2025, with prices growing by 5.2% following central bank rate cuts and relative political stability. Nevertheless, despite local gains, South Africa’s real estate returns have not reached the levels seen in global markets, which achieved an 11.04% return according to the FTSE EPRA Nareit index. Additionally, South Africa suffers from weak tradable real estate investments compared to the global market.
