Where first-time buyers, retirees and investors are buying in 2025

Different buyer groups are gravitating toward specific areas of South Africa as the property market evolves in 2025. Antonie Goosen, principal and founder of Meridian Realty, says location remains the most important factor-but lifestyle, security, and return on investment are the real drivers behind today's buying decisions.

"Each buyer segment has distinct needs, and understanding those helps us predict where the demand is going," Goosen says.

Where First-Time Buyers Are Looking

Affordability is key for first-time buyers, many of whom are younger professionals or couples. Popular areas include:

• Northern suburbs of Johannesburg such as Randburg and Fourways
• Southern suburbs of Cape Town like Ottery and Plumstead
• Up-and-coming parts of the Helderberg region, including Strand and parts of Somerset West

"These areas offer access to transport routes, schools, and retail hubs-making them practical without breaking the bank," says Goosen.

Retirees Seeking Tranquillity and Security

Downsizing and a quieter lifestyle are top priorities for retirees, who often want community, medical facilities, and lock-up-and-go security.

Popular destinations include:

• Hermanus and the Overberg for coastal serenity
• Stellenbosch and Paarl for access to healthcare and culture
• Secure lifestyle estates across the Western Cape and Garden Route

"Security and peace of mind are paramount for this group, which is why we see such strong demand in lifestyle estates," Goosen says.

Investors Eyeing Growth Potential

Buy-to-let investors and those looking for long-term growth are focusing on:

• Student hubs like Stellenbosch, Potchefstroom, and Pretoria
• Gentrifying suburbs with strong rental yields, such as Woodstock and Observatory in Cape Town
• Mixed-use developments near transport nodes

"Investors are data-driven," says Goosen. "They want to know about occupancy rates, growth projections, and tenant demand. The right areas offer reliable returns even in a cautious economy."