Why eco-friendly properties are in demand!
For many South Africans, going green is no longer just a lifestyle choice; it is a practical response to real challenges like load-shedding, water scarcity and rising utility costs. Homebuyers and tenants alike are increasingly viewing self-sufficient, eco-friendly features as essential, not optional.
“Eco-friendly homes have definitely increased in value from both a buyer and tenant’s perspective over the last two years,” says Lindy Breytenbach, Property Practitioner at Just Property Platinum, Mossel Bay. “Buyers value the convenience and resale value. These features mean lower municipal bills, making them very attractive to anyone looking for a cost-effective and sustainable lifestyle.”
What’s driving demand?
South Africa’s service delivery challenges have sharpened demand for homes that can operate independently. In many markets, green features such as solar power, rainwater harvesting and energy-efficient appliances have become key selling points.
According to the latest Absa Homeowner Sentiment Index (HSI) Q1 2025, 57% of surveyed South Africans believe it is a good time to buy property, but affordability concerns remain high. Almost 80% of buyers cite “cost of living” pressures as their biggest challenge, and 58% specifically mention municipal tariff hikes as a key worry. In this context, homes offering genuine savings on water and power bills stand out.
What buyers want
Green features that are especially sought-after include:
- Solar power systems to mitigate load-shedding and slash electricity costs.
- Water-saving solutions such as rainwater tanks, boreholes and greywater systems (critical in drought-prone regions).
- Energy-efficient appliances and lighting that reduce both running costs and environmental impact.
- Smart home technologies that optimise energy use and improve convenience.
- Sustainable materials that reduce construction emissions and waste.
Lindy notes that “younger families working from home, especially those with children, are actively looking for more eco-friendly homes.”
The financial case and the risks
Investing in green upgrades generally pays off, but the costs and complexity can’t be ignored. “I’ve seen buyers put in lower offers to make sure they can afford installing off-grid systems if they’re not already there,” says Lindy. “They also check things like the roof’s structure and gradient to make sure it can support solar equipment.”
She also advises sellers to be transparent and avoid removing installed systems during negotiations. “Sell your property with your solar panels and inverter system included. Trying to take it down as a special condition puts potential buyers off.”
From a landlord’s perspective, the picture is more mixed.
“Landlords can be hesitant about installing eco-friendly improvements because of maintenance costs if something goes wrong,” Lindy explains. “There’s also a shortage of affordable rental stock. Tenants might prioritise getting any property over finding one with green features – but if those features are there already, it’s definitely a bonus.”
Building from scratch? Research by the Green Building Council of South Africa, the Association of South African Quantity Surveyors, and the University of Pretoria shows that the Green Building Cost Premium has been falling steadily (from 5.95% between 2009 and 2014) to 3.15% between 2019 and 2021. This cost is more than recouped in higher resale value as buyers increasingly prioritise lower utility costs and resilience. Just Property’s own informal survey among its agents two years ago found that buyers were prepared to pay premiums of up to 16% for homes that operate largely off-grid or independent of municipal services.
Lindy suggests tailored strategies for the key market participants:
- Developers: “All new homes should come with solar panels, an inverter system and a decent-sized water tank. It’s becoming essential for the way we have to live and survive.”
- Buyers: “Budget for the extra expense. It genuinely improves your lifestyle. But don’t overlook older homes either because there are many budget-friendly solutions now available.”
- Landlords: “Be open to tenants’ requests for eco-friendly installations. It can help with retention.”
Commercial property perspective
The drive for sustainability has already reshaped South Africa’s commercial real estate. According to the recently released MSCI South Africa Green Annual Property Index 2024, green-certified commercial properties have consistently outperformed their non-certified peers on key metrics like capital growth and income returns.
Growthpoint reports that green-certified offices delivered total returns of 9.1% in 2023, compared to 5.4% for non-certified offices. This performance gap demonstrates that the market values sustainability beyond just residential buyers – tenants, investors, and landlords are all recognising the long-term cost savings, lower environmental impact and stronger asset values that come with going green.
For today’s buyers, especially younger, tech-savvy professionals, sustainability is not a luxury but an expectation. “Developers and sellers need to realise it’s just part of how we have to live,” says Lindy.
Ultimately, green homes aren’t just about saving the planet. They’re about ensuring a more reliable, affordable and resilient future, one that aligns with the practical priorities of South Africans across income levels.
