How will the 2024 Election affect the property market?

In 2024, the world will witness unprecedented elections, with at least 64 countries, including South Africa, the United Kingdom, The United States, India, and Russia, heading to the polls. 

Representing nearly half of the global population, these elections carry significant weight and promise consequential outcomes for years to come. With the stakes high, South Africa's property market prepares for what could be a transformative journey, bracing for the impact of political uncertainties amidst a crucial election year.

Experts predict a transformative year amidst global election surge

As South Africa braces to go to the polls on May 29th, real estate experts foresee a transformative period characterised by opportunities and challenges. But it is important to note that factors of economic challenges tend to transcend election woes.

Last year's tumultuous landscape, marked by high inflation and interest rate hikes, set the stage for a year of resilience and adaptation in the property market. However, amidst the global election surge, market fluctuations, whether positive or negative, appear inevitable, urging stakeholders to adopt a strategic approach to navigate the evolving landscape.

Interest rate outlook and market dynamics

While elections in the UK and the US often result in a change of party policy and government, South Africa's elections tend to be far less tumultuous. Since 1994, the incumbent party has comfortably extended its term to another five years and has set the tone for a more unencumbered property market within each subsequent election year. It is also worth noting that the ruling party is once again projected to win in 2024, albeit with a smaller share of the vote.

The real heartbeat of South Africa's property market often syncs with the rhythm of interest rate movements. Real estate experts see a glimmer of hope on the horizon as inflation stabilises locally and globally. This stabilisation marks a turning point after a challenging period, setting the stage for potential interest rate adjustments in mid-2024.

Real estate experts anticipate a gradual decline in interest rates, which could increase buyer confidence and unleash pent-up demand, especially among first-time buyers. Some experts speculate that the first cut could come in Q2, signalling a significant shift in the market dynamics. While escalating interest rates hindered property demand in 2023, stabilisation is expected to reignite the market, particularly for those sensitive to interest rate fluctuations.

Cautious optimism and strategic planning for buyers and sellers

Despite the anticipation of interest rate reductions, caution prevails among market participants. Real estate experts advise against expecting a dramatic rate-cutting cycle to begin. While even a modest rate cut can alleviate some financial pressure on households, market conditions are unlikely to witness substantial impacts from marginal adjustments.

However, buyers and sellers alike are urged to approach the market strategically. In a buyer's market, sellers may need to adjust prices to align with market realities, while buyers benefit from improved affordability and strategic investment opportunities. We echo cautious optimism, emphasising the importance of looking beyond short-term uncertainties such as a general election.

"It is essential to research and understand your financial goals and reach in terms of expenditure. Make informed decisions based on your income and expenses and what would suit your family best. There is no good right or wrong time; it is only the right time for you. Take manageable risks, but don't stagnate either." - Martin Hayward, Ikonic Real Estate

South Africa's property market stands at a crossroads, but it is not informed by the surface-level worry over an election. Because of this, and as interest rate dynamics evolve, stakeholders are called upon to embrace a strategic mindset, leveraging market insights to make informed decisions over an almost whimsical worry/hope that the government will change hands (at least for now). 

Contact Ikonic Real Estate today.

For Real Estate professionals you can trust and rely on for industry-related expertise, contact us below for more information.

If you are looking to live in Silver Lakes Golf and Lifestyle Estate, Silver Stream Estate, Lombardy Estate & Health Spa, The Ridge Estate, Six Fountains Estate, or Willow Acres Estate and surrounding areas, then Ikonic Real Estate is your preferred property practitioner to assist you in all aspects of the selling and buying process.

Office Number: 083 452 5599
Cell Number: 083 452 5599
Email: martin@ikonic.co.za

Ikonic Real Estate holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.