In South Africa, the housing market is evolving rapidly as younger generations demand affordable, secure, sustainable and technologically advanced homes, reshaping the landscape of real estate.
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According to BusinessTech, millennials, born between 1980 and 1996 and now aged 27 to 44, have faced challenges from the global financial crisis and COVID-19.
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As they increasingly enter the property market, they are reshaping home buying trends, influencing property types and location preferences.
‘Millennials are now a powerful force in the real estate market. Their unique preferences and financial behaviours are driving changes that are impacting the entire housing sector,’ said CEO of Harcourts South Africa, Richard Gray.
‘This generation prioritises flexibility, technology, and sustainable living, which is markedly different from previous generations.’
Millennials prefer urban living and access to amenities, unlike previous generations, who preferred suburban areas.
Millennials’ tech-savviness is changing real estate transactions, requiring the use of digital tools and online platforms to meet their expectations.
‘Millennials expect a seamless, tech-driven experience when buying or selling property,’ Gray added.
Sustainability is a key factor for millennial home buyers, who prioritise eco-friendly features and energy-efficient homes.
‘They are more likely to invest in properties that offer sustainable features such as solar panels, energy-efficient appliances, and eco-friendly building materials. This is encouraging developers to incorporate green technologies into their projects.’
Affordability is a major concern for millennial buyers, many of whom are still managing student debt and facing a competitive job market.
CEO of Fitzanne Estate, Pearl Scheltema, notes that younger millennial and Gen Z buyers are shaping property demand with their focus on technology and sustainability, though affordability remains their top priority.
‘One of the primary challenges for these groups is affordability,’ said Scheltema.
Scheltema highlights that high property prices, strict lending criteria, and economic uncertainty make it challenging for young buyers to enter the market.
The emotional stress of buying a home adds to the difficulty.
Millennials and Gen Z prefer homes with advanced smart technologies like automated security systems, smart lighting and energy management tools.
Much value is placed on energy-efficient features and sustainable materials, while also prioritising safety and security.
As a result, they often seek properties in secure complexes and new developments with integrated security systems.
Modern developments are incorporating smart security technologies that let residents monitor and control their homes via smartphones, appealing to a generation that values tech integration.
Scheltema notes that this trend reflects a shift towards multifunctional homes where security, sustainability, and technology meet contemporary lifestyles and values.
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