Throughout 2020 and 2021, the real estate industry experienced several changes and upsets. However, as we enter 2022, it’s time to look to the future. To that end, we’re going to explore a few of the property trends from 2021 and look at which new ones will be emerging throughout this year.

In this article, we’re going to discuss:

The top industry trends from 2021. New property trends for 2022.

A Recap Of The Industry During 2021

The effect of the pandemic on the property market and real estate industry was undeniable throughout 2020 and 2021. The biggest impact was lowering interest rates, allowing many first-time and young buyers to purchase their first homes. Additionally, as workers were relegated to work-from-home positions, the needs for comfort, recreation, amenities, and space became determining factors in determining the appeal and value of properties.

Investors, young and old, also had many opportunities of which to take advantage. Group buying became a viable side hustle for those millennials entering the property market. Additionally, holiday homes became more appealing as an escape from isolation and the cramped living in large cities.

While some of these property trends will likely continue for at least the first few quarters of 2022, there are also indications that the market will be bouncing back throughout the year.

New Property Trends to Look Out for in 2022 in South Africa

Some of the property trends mentioned above may continue to grow and affect 2022. Below, we’re going to look at a few new - and noted - trends that experts expect to rise throughout the year.

First-Time Buyers And Remote Work Flexibility

Although the effects of the pandemic on loan interest rates are beginning to level off, they are still very favourable for first-time buyers. As employers continue to give employees the option of working remotely, buyers will continue to look for and purchase homes to meet their needs. To achieve a comfortable work-life balance, many individuals, couples, and families will likely continue to relocate to smaller towns with larger and more affordable properties throughout 2022.

Slowly Rising Interest Rates and Collaborative Lending

Interest rates are expected to rise slowly over the next two quarters with further incremental increases throughout the year. That said, the rates aren’t likely to increase sharply for at least the next year. Consequently, many lenders are taking a more open-minded approach to low-risk applicants, allowing more buyers into the market.

A clearly rising trend is the collaboration between buyers and lenders. The trend indicates that lenders and applicants will continue to collaborate, allowing buyers to decrease their risk while improving their application strength.

Increase in Renovations

As people spend more time at home due to travel and work restrictions, they’ve begun to pay more attention to the state of their homes. Additionally, as spending on recreation and travel decreased, homeowners were left with more disposable income. As a result, many owners have begun to renovate their properties to improve their quality of life.

A major benefit to the renovation trend is the availability of higher-quality properties in the market. According to experts, millennials will be the next big wave of buyers. However, the generation has high expectations for their future homes’ livability and technology standards. Recently renovated properties are ideally suited to this group of buyers.

Group Buying and Collective Ownership

While properties are still largely affordable to first-time buyers early in 2022, it’s likely that the financial pressure will rise as the market recovers later in the year. As such, experts expect group buying and collective ownership to see a sharp rise this year. Not only does this allow middle-income buyers to invest in property, but it encourages high-end investors as well. It promises to be a very interesting property trend in 2022.

Increased Buyer and Eco-Living Expectations

As we mentioned earlier, the new, young, and tech-savvy buyers entering the market will see many changes to property trends and buying behaviour in 2022. First, many young buyers expect to have access to high-quality photos and virtual tours of the properties and surrounding neighbourhoods before deciding to purchase a home.

They also have much higher expectations of their future homes, including:

• The availability of technologies like 5G and high-speed fibre.
• Amenities that are within walking distance.
• Eco-friendly technologies such as solar power and gas appliances.
• Smart technology and access.
• Access to gardens for vegetable gardens and relaxation.
• Being within delivery distance of many services.
• Furnished apartments and homes.

It’s clear that buyers, particularly millennials, strive to balance technology and eco-friendly solutions that improve their quality of life. The push is reminiscent of those that took place in other countries several years ago, where furnished, smart apartments are the standard.

Rising Popularity of Coastal Property

Many coastal areas are expected to see a surge in buyers throughout 2022. As people prioritise a high quality of life and work-life balance, buyers will likely continue to look for affordable properties in safe and beautiful coastal districts.

Conclusion

Many of the rising property trends can clearly trace their roots to the pandemic and its effects. However, that doesn’t mean they don’t afford several opportunities to buyers and sellers. As new buyers with high expectations continue entering the market, it’s also likely that the quality of property within the country will continue to rise, benefiting buyers and sellers alike. While the real estate market is expected to reach a new equilibrium, it’ll be interesting to see how the industry will continue to evolve throughout the year.