Despite the challenges caused by a declining property sales market, the rental market has flourished, offering lucrative opportunities for savvy property investors.

The Absa Homeowner’s Sentiment Index is an economic report that indicates the consumer confidence level of the property market in South Africa – and it has indicated a host of positive trends.

The results for the first quarter of 2024 reveal an increase in confidence in the property market, with overall sentiment among respondents surveyed climbing to 82%. In the survey of 1, 149 respondents, the number of positive responses rose 4% compared to the last quarter of 2023. This quarter’s index also indicates healthy growth in sentiment across investors surveyed, surging 6% quarter-on-quarter.

Several key trends are shaping the South African property market, including:
• Continued rise in women property ownership: Women, particularly those under the age of 35, are increasingly prominent in the property market, driving demand and shaping investment trends.
• Buy-to-let surge in the Western Cape: The Western Cape remains a hotspot for buy-to-let investments, with significant demand growth.
• Rise in sectional titles: Developments like those from Balwin Properties offer incentives, making sectional titles an attractive investment.
• Increase in co-buying: More investors are partnering to buy properties, pooling resources to enter the market.
• A boost for the sheconomy: Women are taking the lead in property investment, driving a notable shift in the market. Between 2010 and 2020, bond approvals for women surged from 14% to 41%, with 60% of these approvals for single women.

Women are increasingly investing in property to secure their future and create generational wealth, with a focus on younger professionals across various industries. Solo female buyers are often buying slightly more expensive properties than their male counterparts, reflecting their growing financial independence and investment savvy.

According to mortgage originator Ooba, investment property finance applications have tripled nationally, rising from 4-5% to 11.8% of all home loan applications. The Western Cape has seen a dramatic rise, with these applications now standing at just over 28%, meaning that nearly one in three home loans applied for in the province is related to investment property.

Despite the thriving buy-to-let market, a significant portion of South Africans still views homeownership as unattainable. Absa is changing this perception by offering comprehensive guidance and support to potential investors.

Absa’s Buy to Let offering caters to a diverse range of investment needs, making property investment more accessible and sustainable.

⁠ ⁠• Future rental income:* Investors can add the market-estimated future rental income to their credit affordability assessment, – enhancing their investment capacity.
• Tenant Profile Network (TPN): Absa customers can access comprehensive rental market reports and lease agreements at discounted rates via this handy service.
• South African Property Investors Network (SAPIN): Absa customers get a free six- month Foundation Membership, including access to events, webinars, and a network of like-minded investors.
• Absa Fiduciary Services: This includes estate and trust administration, financial planning, and Absa Law For You, which provides top-quality legal services with litigation cover.
• Absa Insurance: Make the most of building and homeowner’s insurance, home loan protector insurance, life cover, and even credit protection plans!

*Terms and conditions apply.  

Absa is dedicated to helping South Africans realise their property investment dreams. With tailored services, comprehensive support and unique features like future rental income assessments, Absa makes it easier for investors to navigate the property market and secure their financial futures. Whether you’re a seasoned investor or a newcomer to the market, Absa provides the tools and resources needed to succeed in the thriving buy-to-let sector.

Explore the possibilities and invest in your story with Absa!