Double-digit growth: Inside South Africa’s booming estate housing market
In the early 2000s, housing estates made up only a small segment of South Africa’s residential market. Two decades on, they’ve emerged as one of the country’s fastest-growing property types, prized for their security, convenience, shared amenities, and consistent long-term value.
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Market data shows just how dramatically buyer preferences have shifted over this period. Property intelligence firm Lightstone, which tracks data on how buyer preferences have shifted over time, reveals that in 2009, freehold properties accounted for 66% of sales. By 2023, preference for freehold property had swung the other way, dropping to 56%, while sectional title climbed from 23% to 29% and estates grew from 11% to 15%.
While both estates and sectional-title schemes might cater to demands for affordability, convenience and security, it is estates that have become the aspirational choice for higher-income buyers, particularly seniors. With more than 490,000 homes located in estates across South Africa – four times the number recorded in 2003 – planned communities built around shared amenities, resilience and peace of mind have become one of the most sought-after forms of housing in the country.
Why estates are booming
Crime is unfortunately a major factor, but it is not the primary motivation. World Bank data estimates that crime costs South Africa $40bn a year, or about 10% of GDP, which is worsened by the power and water crisis. Estates can provide residents with peace of mind: secure perimeters, access control, state-of-the-art backup power and water solutions, as well as professional management of shared services.
They also spread costs more effectively. By sharing expenses across many owners, estates can fund amenities that would be impossible to finance in smaller developments, allowing residents to benefit from gyms, clubhouses, clinics, co-working spaces, golf courses, and even schools, all within the estate perimeter.
The diversity of estate living
Residential estates are not a single category but a spectrum of lifestyle options. These include:
Golf estates: Premium courses integrated with residential developments. Fancourt in George, Val de Vie outside Paarl and Leopard Creek near the Kruger National Park remain among the most desirable addresses in the country.
Eco and wildlife estates: Concentrated in Limpopo, Mpumalanga and KwaZulu-Natal, these allow residents to live within conservation areas, often among free-roaming wildlife, while enjoying modern services. Many incorporate solar energy, rainwater harvesting and indigenous landscaping, appealing to buyers who value a luxury bush experience and sustainability.
Marina estates: Coastal enclaves designed for waterfront living. Knysna’s Thesen Islands and St Francis Links stand out, combining direct water access with secure residential design. With supply constrained, these properties continue to command premium values.
Wine estates: Unique to the Western Cape, these developments blend working vineyards with luxury housing. Estates such as Val de Vie and De Zalze outside Stellenbosch offer heritage, lifestyle and strong capital growth.
Source: Supplied.
Shifting buyer expectations
Younger purchasers, especially those entering the market for the first time, tend to favour sectional-title units for affordability and convenience. By contrast, estates appeal to buyers in higher-income brackets who prioritise lifestyle, security and long-term value.
Bradd Bendall, national head of Sales at BetterBond says affluent, often older buyers who seek stability and lifestyle are still driving estate demand, but the aspirational pull is just as powerful.
“Estate living speaks to buyers who want more than a house – they want a secure, convenient and connected way of life, with healthcare, leisure and community amenities on their doorstep,” he explains. “For these clients, estates are not only a sound investment but a gateway to the quality of life they’ve worked hard to achieve.”
Estate living has also become a way to preserve wealth. Estates consistently command a price premium over other property types, with average values almost double those of freehold homes. Even as transaction volumes slowed nationally in 2023 and 2024, Stats SA has recorded strong house-price inflation in the Western Cape (9.5% in March 2025) and Limpopo (6.8%).
Coveted addresses
At the upper end, Henley & Partners’ Africa Wealth Report shows that wealth concentration in South Africa is shifting, and estates are at the heart of it. The Western Cape now hosts about 17,300 millionaires spread among Cape Town, the Winelands, the Whale Coast, and the Garden Route – areas that also boast many of the country’s most sought-after estates. Gauteng, in contrast, has about 14,000 millionaires.
Most of the country’s estates are still in Johannesburg’s northern suburbs (Sandton, Midrand, Fourways) and Pretoria East, but the Western Cape leads with premium, high-value estates, particularly in the Cape Winelands (Stellenbosch, Paarl, Somerset West), Southern Suburbs, and along the Whale Coast and Garden Route.
Market fundamentals also point to continued resilience in estate living. The South African Institute of Valuers expects that consecutive interest rate cuts in 2025 will stimulate demand. Lower borrowing costs will ease pressure on existing homeowners while widening the pool of potential buyers. In areas where stock is limited, stronger demand is likely to give sellers greater leverage and support higher prices.
For buyers, estates offer more than secure walls: they represent safety, community, convenience, and long-term value. As Bendall puts it: “Whether you’re a first-time buyer pooling resources, or an investor seeking lifestyle and capital growth, estates have become the benchmark of modern South African living.”