Top real estate trends for 2023
Category News
2023 is now in full swing and now is a perfect opportunity to take a closer look at the trends currently driving the real estate industry. Jawitz Properties takes a look at some of the forces driving the industry and the trends we expect to see taking greater hold in 2023.
Semigration continues and popularity of semi-rural areas on the rise
Many companies have permanently entrenched remote working into their ethos. This means that living a digitally nomadic lifestyle - at least to some degree - has become the new normal. Employees are no longer tied to commercial hubs like Cape Town, Johannesburg or Durban. As a result, they are taking advantage of the affordability and lifestyle advantages offered by peri-urban and semi-rural areas. By way of definition, a "peri-urban" area is one located directly next to a city or urban area. "Semi-rural" refers to areas that have characteristics of both urban areas and rural areas.
Factors high on the checklist for property buyers include access to the great outdoors, areas for children to play, proximity to cycling routes and opportunities to enjoy a fit and healthy way of life. Lifestyle now far supersedes proximity to work on the list of priorities. People buying homes in peri-urban and semi-rural areas are typically looking for bigger properties than that which they would have been able to afford in the centre of an urban metropolis.
In addition, the Western Cape is still seeing an influx of newcomers - mostly from Gauteng - who want to make the most of life at the coast. Semigration amongst older property buyers and retirees - commonly called "silver semigration" - is also becoming more prevalent.
Opportunities for off-grid and smart living high on buyers' priorities lists
In light of Eskom's recent announcement of permanent loadshedding being likely to prevail for the next two years, it should come as no surprise that off-the-grid installations like solar power, inverters and grey water collection continue to climb property buyers' priority lists. For convenience reasons and sustainability concerns, more and more people are taking steps to lower their reliance on the grid.
Increasing demand for smart-home features, such as lights, blinds and appliances - is another feature of the property market in 2023. Apple has announced its intention to challenge Google and Amazon's dominance in the smart home space, so we can expect to see new and dynamic innovations from all smart-home tech providers.
Banks' appetite for risk
Despite the historic low interest rate brought about by the pandemic being a thing of the past, the banks' appetite for risk remains high, and it is still possible to get a 100% home loan if your circumstances are suitable. In light of the rising interest rate, it is important not to overextend yourself financially and ensure that you are buying within your means. While there are many great reasons to become a homeowner, it is worth considering a smaller home - or perhaps a different area - to ensure that your bond repayments don't excessively strain your budget. Investing in bricks and mortar remains a sound financial choice if it is done correctly, with the assistance of a property practitioner and your financial advisor.
Sectional titles remain extremely popular
The popularity of sectional title properties - with the security and family-orientated way of life they offer, shows no sign of tapering off. The popularity of new developments and all the advantages of buying off plan are also at the forefront of buyers' minds when making decisions about their property investments.
In light of current market conditions, it is more important than ever to make your real estate decisions smartly. To do this, you need the help of a qualified and experienced property practitioner, and the Jawitz team is here to help. Contact us today for advice or help in buying your new property.
Author: Jawitz Properties
