Migration shifts in the South African Real Estate market could benefit Real Estate Investors.

Real estate market shift as more and more South Africans relocate from one city to another - Best Agent Article

Migration shifts in the South African Real Estate market could benefit Real Estate Investors 

As a direct consequence of the COVID-19 pandemic, an increasing number of people are thinking about moving away from large cities and into smaller communities. Because of this shift in population, property owners and investors in real estate have been presented with a fantastic opportunity.

According to the findings of Lightstone [R], a company that specialises in real estate analytics, approximately twenty percent fewer people are choosing to relocate from one city to another at present, while more people are deciding to move to smaller towns. This pattern is not restricted to people who are between the ages of 45 and 65; rather, it encompasses younger working professionals as well as families who are actively engaged in the working class.

People are choosing to relocate to smaller towns for a variety of reasons, one of the most prominent of which is the rising cost of living in larger cities. People are realising that small towns can offer a higher quality of life at a price that is more manageable for their budgets. The highest rates of population loss as a result of emigration are being experienced in the provinces of KwaZulu-Natal, Gauteng, and the Western Cape, respectively. The majority of people leaving Gauteng are relocating to the neighbouring provinces of KZN and the Western Cape. Mpumalanga, the Eastern Cape, and the North West are also seeing the trickle-down effect of relocation, albeit on a much smaller scale.

Small towns such as Hartbeespoort in Gauteng, Swellendam and Ladismith in the Cape region, Riversdale, Agulhas, and Suiderstrand in the Southern Cape, Plettenberg Bay on the Garden Route, and Langebaan on the Cape West Coast are among the most appealing destinations for people looking to purchase real estate in South Africa. These towns provide a healthier way of life as well as residences that can be purchased for lower costs and come with a wider range of essential utilities. Additionally, larger cities such as Cape Town and Plettenberg Bay are becoming increasingly appealing to people who are looking to escape the hustle and bustle of the city.

By purchasing property in these more rural communities, real estate investors can position themselves to profit from the current trend. The rise in demand for homeowners' properties can also be beneficial for the owners of those properties. They have the option of either selling their properties at higher prices as a result of the rising demand or renting them out to individuals who are looking for a change of environment. Property owners and investors in real estate should pay attention to the shifting patterns of population movement and seize opportunities as they present themselves.

As a result of the COVID-19 pandemic, there has been a significant migration of people from large cities to smaller towns. Because of this, property owners and investors in real estate now have the opportunity to profit from the rising demand for homes and other real estate in smaller towns. As the cost of living continues to rise in larger cities, an increasing number of people are opting to move to smaller towns in search of a higher quality of life at more manageable prices. Real estate investors and property owners can capitalise on this trend by purchasing or selling properties in desirable locations to make future investments there.

Marcel Koole This blog post author is Marcel Koole

Marcel Koole