- South Africans are living longer, and the over 60s are increasing as a percentage of the population.
- Retirement developments are becoming more advanced, and are expected to offer a range of facilities and recreational activities.
- Coastal areas are especially popular with retirees.
People are living longer, but that doesn’t necessarily mean they want to be working for longer. For those who wish to enjoy their elder years in peace, moving into a retirement home is an appealing prospect. This demographic is growing fast, and demand for retirement properties will only increase.
According to Statistics South Africa, South Africans aged over 60 currently comprise 8.1% of the population. Furthermore, there has been a 10 year increase in the lifespan of the average South African. (source)
They are a growing market that property developers are looking to target, since there is currently insufficient housing to meet the demand.
Investing in a retirement development
Property investors should be keeping their eye on new retirement developments, which will increase in number as developers cater to the growing demand. The percentage of South Africans over the age of 60 is predicted to double to 15.4% of the total population by 2050.
What should you be looking for in a retirement development?
- Look for properties in coastal areas, as these are proving popular for retirees.
- As mentioned, South Africans are living longer, and favour an active lifestyle even in their later years. The retirement developments of today should offer facilities that cater to that, such as outdoor areas and walking trails.
- Retirement developments nowadays are expected to be significantly more advanced than those of old, with a range of facilities and creature comforts. Don’t look for low-cost apartments in old buildings and expect there to be a demand for it.
- Sectional title properties in gated estates are especially appealing because of the safe outdoor spaces and additional security.
Popular retirement destinations in South Africa include:
- Plettenberg Bay
- Jeffreys Bay
- St Francis Bay
- Port Alfred
- Mossel Bay
Some other interest facts about retirement in South Africa:
- Western Cape has overtaken Gauteng as the most popular retirement destination in South Africa. (source)
- Estate living is the most popular form of retirement living in the Western Cape, as opposed to sectional title properties in Gauteng.
- These days, many individuals in the average age bracket for retirement (60+) are still economically active, hence the desire for retirement estates that have access to recreational activities.
- According to businesstech, the value of sales of retirement units rose from just under R2 billion in 2008 to R4.9 billion in 2019.
- Buyers over the age of 50 years made up 33.06% of total property purchases as of 2017, up from 22.09% in 2007.
The benefits of using a home loan comparison service
Retirees are a safe market for property investment and one that is guaranteed to see significant growth. If you’re looking to invest in a retirement property, ooba Home Loans — the largest home loan comparison service in South Africa, can help you reap maximum benefits by securing you a bond with low interest rates.
We submit your bond application to multiple banks, so you can compare deals and choose the best package.
We also offer tools that make the buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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