Property trend spreading across South Africa

Demand for apartment living is rising in South Africa, and, contrary to popular belief, this is not solely due to affordability.

The Devmco Realty team recently highlighted this trend, specifically focusing on apartment demand in KwaZulu-Natal. 

Devmco’s sales and marketing director, Pamela Naidu, said the shift towards apartment living is as much about aspiration as it is about necessity. 

“In recent years, the market has matured. Buyers and investors alike are more discerning, and apartments have proven to offer the kind of return, flexibility, and tenant demand that stand the test of time,” she said. 

She noted that the locale of these apartments is still important. “From first-time buyers and savvy investors to downsizers seeking simplicity, the appetite for well-located, lifestyle-rich apartments has surged,” she said.

According to Naidu, the numbers tell their own story. She said rental demand is outpacing supply, with investors scrambling to secure available stock. 

“Strong yields and low-maintenance ownership are just part of the appeal,” she said. 

“The real differentiator? Quality design, secure living, and curated amenities including everything from gyms and co-working lounges to integrated green spaces and smart tech.”

She explained that these lifestyle features are no longer “nice-to-haves” but requirements, as investors and buyers look for convenience.

In addition, while affordability remains key, she said first-time buyers and rental-focused investors, in particular, seek high-end apartments catering to lifestyle purchasers who value space and exclusivity. 

In both cases, Naidu believes these fundamentals are aligned. “Security, good workmanship, and a well-run body corporate are non-negotiables,” she said. 

“If the product is well-designed, well-positioned, and priced right, demand will always follow”.  

She added that mixed-use precincts are also gaining traction, primarily due to competitive pricing and the seamless integration of work, life, and leisure. 

“And with a younger generation increasingly choosing flexibility over fixed mortgages, apartments remain a vital solution for urban expansion,” she explained.

Young renters

Naidu advised potential buyers to do their homework, look at how the building is managed, understand the levy structure, and consider newer developments where upkeep costs are lower.

“And, as always, location is everything and it plays a huge role in resale value and rental demand,” she said. 

“In a market where certainty is hard to come by, apartments are offering investors a rare combination of stability, scalability, and sustained demand.”

Tyson Properties director Murray Haywood recently said younger South Africans, in particular, are increasingly opting to rent rather than buy.

“Newcomers to real estate are looking for convenience, amenities and flexibility, rather than first-time home ownership,” he said. 

“As a result, demand for rentals is growing and the market is at its busiest since 2018.”

Beyond the high costs of running a house or the consistent maintenance expense, the younger generation wants to be fluid and follow careers rather than be bogged down by bricks and mortar.

Haywood explained that these younger South Africans prefer investing their spare funds in more liquid financial investments than buying property.

He noted that Gauteng is the most vibrant rental market in the country, as the economic hub offers more job opportunities than many other major metropolitan areas. 

Suburbs like Sandton and Rosebank are particularly popular, offering trendy apartments, proximity to top schools, shopping centres and good transport links.

Aside from Gauteng, Cape Town is also a popular area for renters, with the city’s natural beauty, sophisticated lifestyle, tourism and expanding tech and creative sectors as major drawcards.

He said areas such as Bishopscourt, Constantia, and Newlands are particularly popular.

“The ‘rental’ asset class is growing nationally. Agencies like Tyson Properties are making a concerted effort to set up rental books and establish rental portfolios within their franchise networks,” he said.