When the global economy took a hit in 2008-09, the real estate market nearly crashed and burned. It was no different here is South Africa, with people hesitant to make any major investments during times of economic uncertainty. When the recession hit, most industry experts speculated that it might take nearly a decade for the real estate market to recover.
While the market has bounced back in several countries, it’s slow to recover in South Africa. However, even as it recovers, there’s a surprising trend amongst home buyers that wasn’t as prevalent before. An increasing number of new home buyers are choosing to live in gated communities in the suburbs. This is evident from the fact that in some suburbs, the price of property has nearly doubled over the course of three years.
Buyers are more Circumspect
Before the recession, almost everyone could make profit from their property, regardless of where it was located. The value appreciated over a period of 3 to 4 years enough for most people to gain significant return on investment.
However, that’s no longer the case. Today, buyers have very specific demands and the goal isn’t just to own a house, but rather a house that has a good view, is in a safe neighbourhood, has great schools nearby, has leisure and business establishments, and is within easy distance of urban areas.
These things have drastically influenced the prices of property across the board. While the previous market was fairly in favour of urban properties, electricity and water supply problems, municipal service, and traffic have turned attention towards more comfortable suburbs.
Why Gated Communities?
According to statistics, the best suburbs when it comes to home value appreciation are in Johannesburg, Pretoria, Cape Town, and Durban. Here, Cape Town performs better because of the lifestyle it offers as well as the local governance.
- Security – This is the primary motivating factor behind the high price in gated communities. Crime across the board is less in these areas, allowing people to move about freely and raise their families without fear.
- Location – These communities are located close to major city centres, allowing people an easy access to work and other necessities. However, these places are also isolated enough to escape the noise and the hustle and bustle of urban areas, which allows residents to relax.
- Family-Friendly – One of the primary motivating factors behind purchasing a home in a gated community is family. Most people want to live in a place where their children can be safe and comfortable. These communities are always in close proximity of great schools, making them more attractive.
Aside from the above mentioned factors, the view and general visual appeal of these green gated communities also holds sway over a buyer. For more information about selling up and buying in a leafy suburb, contact Homefair.