South African homeowners shift towards off-grid living, ditching municipal services for sustainability
Solar installations on properties has been on the rise in South Africa.
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More South African homeowners aspire to live off-grid, with many seeking to replace municipal and state-provided services-particularly electricity and water-in pursuit of greater sustainability and self-sufficiency.
This is according to Absa's Homeowners Sentiment Index (HSI) for the first quarter of this year.
More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources.
In parallel, households are said to be actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity.
A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security.
'We're seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today's environment,' said Nondumiso Ncapai, managing executive at Absa Home Loans.
First developed in 2015, the Absa HSI is an indicator of the overall state of consumer confidence in South Africa's property market. In this year's first quarter, the Index was expanded to include new questions exploring consumer perspectives on sustainable living and emerging trends likely to influence this in the future.
Overall homeowner sentiment declined slightly by 2 percentage points to 85% in this period, down from 87% in the last quarter of last year.
The dip reflects growing uncertainty around US policy direction and the South African Reserve Bank's decision not to implement a widely anticipated rate cut in March. Despite this, the current reading was said to remain the second-highest since the Index's inception a decade ago.
Buying sentiment held steady at 77% in this year's first quarter, maintaining the gains recorded in the previous quarter. The average age of homebuyers continued to decline, with first-time buyers now entering the market at 38.
Selling sentiment declined marginally to 49%, down from 51% in the last quarter of last year. Many sellers were said to still be adopting a wait-and-see approach, anticipating that they would get better prices in the future.
Buy-versus-rent sentiment dropped by 4 percentage points in this year's first quarter. While many renters noted they had now saved enough for a deposit or sought more space, others continued to favour renting for its flexibility and perceived affordability.
Renovation sentiment fell by 3 percentage points to 79%, with most homeowners citing value-adding improvements and quality-of-life enhancements as primary motivators. Rising input costs were said to remain a barrier for many.
Investment sentiment held firm at 85%, sustaining its highest level on record since the Index began. While concerns around economic conditions and the country's long-term trajectory remain, property continues to be viewed as a resilient investment vehicle.
At a provincial level, the highest overall homeowner sentiment was recorded in Limpopo (93%), the Free State (92%), marking its highest score on record, and the Northern Cape (92%).
Migration trends continued to shape local dynamics with the Western Cape remaining a net beneficiary of inward migration, although the pace has slowed over the past three quarters. The Eastern Cape continued to record positive net migration, while KwaZulu-Natal has seen an uptick in outward migration.
Ncapai said the sustained strength in overall sentiment, particularly in buying and investment confidence, signals not only the resilience of South African consumers, but also a growing optimism around a medium- to long-term recovery in property market activity.
'Despite near-term pressures, there is a clear belief that property remains a reliable store of value and a pathway to financial security. The momentum in positive sentiment over the last three quarters is expected to continue into the rest of 2025.'
Timely relief for homeowners was signalled by the 0.25% interest rate announced on Thursday by the South African Reserve Bank's Monetary Policy Committee, which will hopefully act as a catalyst for first-time buyers entering the market, according to Paul Stevens, CEO of Just Property.
'The cut, along with lower-than-expected inflation numbers, should inject fresh momentum into the property market, lowering monthly bond repayments and improving affordability for first-time buyers and investors alike.
"For Just Property clients, it may open the door to upgrades, refinancing or entering the market sooner,' Stevens said.
The property company said that broadly, a cut will support economic activity, particularly in consumer-sensitive sectors like property and retail, although the SARB will be mindful of inflationary risks going forward.
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