Work from home comeback in South Africa

Rising fuel prices in South Africa could revive demand for remote and hybrid work, reshaping housing preferences as buyers prioritise affordability, reduced commuting, and homes suited for flexible working.

South Africans are currently bracing for sharp fuel price increases in early April, with the latest estimates suggesting petrol will rise by approximately R6 per litre and diesel by around R10 per litre.

These increases follow the ongoing conflict in the Middle East, which has pushed oil prices higher and weakened the rand.

In particular, the closure of the Strait of Hormuz pushed Brent Crude oil prices from roughly $69 to over $115 per barrel.

Just Property CEO Paul Stevens cautioned that while the immediate impact will be felt at the pumps, rising fuel prices will influence household budgets, and ultimately, where and how home buyers choose to live.

“Fuel isn’t just a budget item, it shapes behaviour,” he said. “When the cost of getting from A to B jumps overnight, people rethink their routines, their work patterns, and their housing decisions.”

“We saw this during Covid‑19, and we could see echoes of that again, even though the circumstances are very different.”

South Africa’s property market is already feeling the effects of the conflict. On Thursday, 26 March, the Reserve Bank’s Monetary Policy Committee (MPC) voted to keep South Africa’s interest rates unchanged.

This means the repo rate will remain at 6.75% and the prime lending rate at 10.25% until the MPC’s next meeting on 28 May.

Independent economist John Loos said this decision by the MPC was unsurprising, “given the huge inflation uncertainty emanating from the Middle East conflict around Iran”.

“Depending on what happens in the Middle East, the SARB may relook at interest rates when they next meet in May, but it’s probably safer to accept that there won’t be any more cuts this year.”

Loos added that he is considering the possibility that the coming months will reopen two major debates that have influenced the post‑pandemic housing landscape.

The two debates are the country’s future of remote and hybrid work, and the affordability of living close to economic opportunity.

Employees push for remote work

The pandemic normalised remote and hybrid work for millions of South Africans, Loos explained. However, as offices reopened, many employers pushed for a return to in‑person work, citing culture and collaboration.

Employers’ arguments typically centre on the human culture and connection benefits of in-person contact in a business environment.

Meanwhile, those in favour of remote work focus on the benefits of reducing unproductive commuting time and financial costs.

“As such, I believe we should expect the debate around remote and hybrid work to escalate once more, should fuel prices remain elevated for some time,” Loos said.

He expects that employees who can operate flexibly will likely push for greater flexibility. While this may not be met with enthusiasm by employers, if fuel prices remain high, the debate around work‑location flexibility could intensify.

For the local property market, this could influence affordable housing demand in high‑opportunity areas, the role of short‑term rentals, the need for mixed‑income development, and expose the limitations of the current public‑transport infrastructure.

Stevens explained that sustained fuel price hikes will influence buyer and tenant priorities in a number of ways. “Homes with a study, a converted garage, and a second lounge will become more sought-after,” he said.

“And as we’ve seen before, fibre‑ready units with designated workspaces and privacy could quickly move from ‘nice‑to‑haves’ to standard expectations.”

If hybrid work becomes more common again, he added, the pressure to live close to central business districts will ease, and as a result, demand could grow for homes in areas previously seen as too far for daily commuting.