The suburban renaissance: how the residential property market is transforming

Urbanisation has been a key watchword for the past two decades and, whilst cities are still attracting droves of job seekers and young professionals looking to establish themselves, it’s much less of a one-way street since the pandemic and many of those who can, are opting to live in the suburbs.

“The global shift toward remote and hybrid work models has redefined how and where people live, and this transformation has sparked a suburban renaissance, as workers seek homes that offer more space, affordability and a better quality of life,” says Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty.

“Suburbs and smaller towns, once overlooked by those tethered to urban offices, are now experiencing a surge in popularity which has profound implications for residential real estate, urban planning, and community development.”

Remote work was already gaining traction before the COVID-19 pandemic, but the global health crisis accelerated its adoption and companies across industries have embraced flexible work arrangements, enabling employees to work from virtually anywhere.

“In South Africa, where traffic congestion and long commutes are daily challenges in the major cities, the ability to work remotely has been a game-changer.

“Employees no longer need to live within close proximity to urban centres, allowing them to prioritise lifestyle factors such as space, safety, and access to nature and, as a result, suburban areas and smaller towns have become highly desirable, marking a far-reaching switch in residential preferences.”

Key Drivers of Suburban Migration

According to Geffen, there are several factors that are driving the shift toward suburban living.

“For most people the two primary factors are space and affordability. Suburbs and smaller towns often offer larger homes and plots of land at lower prices compared to urban areas which is particularly appealing to families and those who value outdoor spaces and dedicated home offices.

“Also key drivers are lifestyle amenities and access to nature and we are seeing that new development in suburbs is increasingly designed with a focus on community living, offering amenities such as parks, schools, gyms, and shopping centres.

“And, after the pandemic, access to green spaces is much more important to many people and proximity to green spaces, hiking trails, and beaches adds to the allure of suburban and semi-rural living, particularly for those seeking a healthier and more balanced lifestyle.

“Last, but certainly not least is safety and security. Crime in urban areas is higher than in many suburban and semi-rural areas and this concern is clearly evidenced by the spike in popularity of gated communities and secure estates, even in more rural places.”

Emerging Suburban Hotspots

Numerous suburban areas in around the country are thriving as a result of this migration trend and Geffen suggests that those looking to invest should be considering in the following areas:

  • Somerset West (Western Cape): Known for its scenic beauty and proximity to Cape Town, Somerset West has seen a surge in demand for family-friendly homes. The area’s access to excellent schools, wineries, and outdoor activities makes it a popular choice for remote workers.
  • Ballito (KwaZulu-Natal): Positioned along the Dolphin Coast, Ballito offers a blend of coastal living and modern amenities. Its growing property market caters to families and professionals seeking tranquillity without sacrificing connectivity.
  • Midstream Estate (Gauteng): Located between Johannesburg and Pretoria, Midstream Estate provides a secure, community-oriented environment. With its schools, medical facilities, and recreational spaces, it has become a prime choice for remote-working families.
  • Mbombela (Mpumalanga): As a gateway to the Kruger National Park, Mbombela attracts nature enthusiasts looking for a peaceful lifestyle. The town’s affordability and relaxed pace of life are key draws.
  • Hartbeespoort (North West): Famous for its dam and leisure activities, Hartbeespoort has become a popular escape for professionals seeking a resort-like lifestyle close to Johannesburg and Pretoria.
  • Durbanville (Western Cape): Located in the northern suburbs of Cape Town, Durbanville is known for its wine farms, excellent schools, and suburban tranquillity. It appeals to families looking for spacious homes within commuting distance of the city.
  • George (Western Cape): Situated on the Garden Route, George offers a mix of small-town charm and modern conveniences. It is particularly appealing to families and retirees seeking coastal living.
  • Knysna (Western Cape): Also on the Garden Route and known for its lagoon and forests, Knysna is a picturesque town that attracts remote workers who value outdoor activities and a laid-back atmosphere.
  • Centurion (Gauteng): A bustling suburb between Pretoria and Johannesburg, Centurion offers affordable housing and excellent infrastructure. Its proximity to major highways makes it ideal for hybrid workers.
  • Witbank (Mpumalanga): Also known as Emalahleni, Witbank is emerging as a residential hotspot due to its affordability and access to nearby industrial hubs.
  • Hilton (KwaZulu-Natal): A charming town in the Midlands, Hilton provides a serene environment and excellent schools. It's a favourite for those seeking cooler climates and proximity to nature.

“The real estate sector has responded to these changing preferences by adapting residential developments to cater to the shifting needs of buyers in general and remote workers specifically,” says Geffen.

“Developers are increasingly incorporating home offices or multipurpose rooms into residential designs and these spaces are equipped with high-speed internet connectivity and layouts conducive to productivity.

“Community-oriented living is also factored into estate and suburban planning and many new suburban developments prioritise a sense of community, with shared spaces such as coworking hubs, recreational facilities, and communal gardens, all of which foster social interaction while supporting work-life balance.

“Smart home features, such as automated lighting, temperature control, and advanced security systems, are also becoming more standard in new developments, especially in higher end properties. These technologies enhance convenience and efficiency for remote workers.

“We’re also seeing more eco-conscious development that prioritises sustainability and energy-efficient designs appeal to buyers seeking environmentally friendly options.”

While the suburban renaissance offers numerous benefits, it also presents challenges that need to be addressed and Geffen notes the following as the most common obstacles:

  • Infrastructure Development: Many smaller towns and suburban areas lack the infrastructure to support rapid population growth. Investments in roads, public transport, and utilities are crucial to sustain this migration.
  • Access to Services: Ensuring access to quality healthcare, education, and recreational facilities is vital to meet the needs of new residents.
  • Urban-Rural Balance: Policymakers must balance suburban growth with the need to revitalise urban centres, ensuring equitable development across regions.

“Opportunities abound for developers, investors, and local governments to capitalise on the suburban shift and public-private partnerships (PPPs) can play a significant role in financing and delivering essential infrastructure and services.

“And, as the trend continues to gain momentum, suburban and semi-rural areas will play an increasingly important role in the country’s economic and social fabric. For the real estate industry, this shift represents an opportunity to innovate and create developments that meet the evolving needs of South Africans.”

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