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As global trends shift, South Africa’s property landscape is evolving in response to new buyer demands, driven by sustainability, technology, and multi-functional living spaces.
Community schemes, including freehold, sectional title, and mixed-use developments, are at the heart of these changes, serving as the foundation for modern, secure, and forward-thinking communities.
1. The Shift Toward Sustainable Living
Property trends have always been shaped by generational shifts in buyer priorities. In the 1980s, the baby boomer generation’s primary concern was safety, sparking a wave of gated communities and residential estates. Over the past 20 years, this sector has experienced more than 400% growth, transforming from basic security enclaves into lifestyle-driven developments offering amenities like golf courses, gyms, and community centres.
Between 2015 and 2019, developers introduced “resort-style” living, offering concierge services and luxury experiences, as seen in developments like Steyn City and Waterfall.
However, the current shift is towards sustainability—a trend ignited by the water crisis in 2017, known as “Day Zero” in the Western Cape. Buyers began to seek developments that offered self-reliance, especially in terms of water and energy security.
Today, green practices are not just a luxury but a necessity, particularly as municipal infrastructure struggles to keep pace with rapid urbanization. Community schemes are increasingly operating as “mini municipalities,” managing their own water, power, sanitation, and waste. The Greater Midstream Association in Johannesburg is a prime example, where eight communities collaborate on utilities and security, making it a highly desirable and resilient community. It also high lights the important of effective management, good governess, effective board members and the number of contributing levy payers.
2. The Rise of Smart Homes
The evolution of technology has played a critical role in how we live. High-speed internet and advancements in digital security systems have paved the way for smart homes, particularly within community schemes. Although South Africa’s adoption of smart home technology may not be as advanced as in Europe, features like smart meters for water management and solar energy solutions have become essential.
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The growing demand for smart homes ties into the broader movement towards sustainability. After the Western Cape’s water crisis and the ongoing challenges of load-shedding, buyers are prioritizing developments that offer energy efficiency, water-saving technologies, and digital integration. While luxury features like “talking fridges” may seem superfluous, it is clear that technology focused on security, convenience, and sustainability is where investment is being made.
COVID-19 further accelerated the demand for smart living. During the pandemic, community schemes faced increased conflict between residents and management, highlighting the need for better communication and crisis management. This period also emphasized the importance of creating resilient communities that can maintain essential services, even in times of crisis.
3. Increased Demand for Multi-Functional Spaces
The new generation of buyers—largely Gen Z—has fundamentally different priorities from previous generations. Having grown up with the internet, smartphones, social media, and significant global events like COVID-19 and the 2008 financial crisis, these buyers are less interested in traditional property features like white picket fences and more concerned with how a property can meet multiple needs.
Gen Z buyers expect developments to offer more than just a home; they seek security, self-reliance, 100% digital integration, sustainability, and community outreach. For them, the question is not just, “How secure is my property?” but “How will I continue to work during a power outage?” They desire flexible, multi-functional spaces like shared offices where they can collaborate on side projects. Community schemes must now cater to these evolving needs by offering not only recreational amenities but also practical solutions for modern living.
4. Urbanization and the Growth of Mixed-Use Developments
Mixed-use developments has been popular for a number of years. These projects combine residential, commercial, and recreational spaces, offering a more affordable and accessible way of living. With urbanization continuing at pace, there is a growing focus on creating developments that are not just luxurious but also financially accessible.
However, the property industry faces a challenge in engaging with younger buyers. The luxury goods market has excelled in attracting Gen Z consumers by communicating effectively on platforms where they make purchasing decisions. They appeal to the persons brand appeal within their social community. In contrast, the property sector has been slower to adapt its marketing strategies. Currently, only 3% of potential 28 million Gen Z buyers in South Africa show interest in property, while 7% are on the fence and the remaining 90% feel excluded due to a lack of access to information.
This indicates a need for better education around property as a valuable investment, not just as a financial asset but as a foundation for long-term security. Owning property such be a metric for success, not driving a luxury vehicle.
Property in this sector has a number of challengers – potential buyers being unaware of affordable housing options is one challenge however there is also a shortfall in available properties to buy in this price range. Adding to property ownership challenges – Private equity funds and banks have shown a preference for investing in rental properties rather than affordable ownership, but the concept of rent-to-own could offer a promising solution for those looking to enter the market.
Looking Forward
The property industry needs to adapt to meet the evolving needs of future buyers. Affordability, sustainability, digital integration and community outreach are key drivers for the next generation, and community schemes must continue to evolve if they are to remain relevant. Mixed-use developments, smart home technology, and a focus on sustainable living and a variety of financing models for property ownership will be crucial in shaping the future of South African real estate.
As we look ahead, the challenge for developers will be to create spaces that not only meet the functional needs of residents but also offer the flexibility and resilience required in a rapidly changing world. The ability to educate and engage with the next generation of property buyers will be essential in ensuring the continued growth of this vital sector.
