Not only does South African politics influence the real estate market but neighbouring countries' political situation can easily spill over into SA.
In recent history stats have shown that the number of sellers selling due to emigration has doubled and this is mostly due to political instability.
Zimbabwe has for long had political problems and this directly influences any potential investments both locally and internationally, says Craig Hutchison chief executive officer of Engel & Völkers Southern Africa.
Hutchison says South Africa has never lagged behind any country when it comes to political turmoil.
This political situation has influenced everyone and almost everything in the country, so how has it and will it influence the real estate market.
Looking back to 1994, when the first democratic elections took place, the hype that was created on a social level ensured the emigration of thousands of South Africans.
Due to this the real estate market became a complete buyers' market, homes were sold for next to nothing as sellers just wanted to get rid of their homes and emigrate, he says.
Hutchison explains that to date emigration does play a factor in selling when political turmoil arises.
Due to this factor investor confidence takes a battering as the political situation has a negative impact on economic growth.
In recent history stats have shown that the number of sellers selling due to emigration has doubled and this is mostly due to political instability.
Factors that are also indirectly influenced by politics are things like rising inflation due to global food and oil prices which diminishes monthly disposable income.
This all leads to a rising household debt-to-disposable-income ratio, he says.
Even though we have seen some ups and downs in the real estate market during the years since the first democratic elections, the future still looks bright.
Recent stats have shown that black buyers have made a big entrance into the market and that almost half of the home loan applications now come from black buyers, a very long way from the only 12 percent it contributed a decade ago.
This could be because of many factors with one of the main influencers being Black Economic Empowerment.
Craig Hutchison, chief executive officer of Engel & Völkers Southern Africa, says any political instability within South Africa causes potential international buyers to retreat and this also causes buyers to drop their prices.
This has been part of South Africa for many years now, but the increase in bond applications show that black buyers are now more confident in investing in property and have better job security than before, he says.
“This is a very positive sign for the real estate market and we hope that this continues.
“We have seen major changes over the years in the real estate market, from an absolute jump to some real lows as well, but the entry of new buyers into the market are surely welcomed.”
Also the role politics plays towards foreign investors is immense.
Any political instability within South Africa causes potential international buyers to retreat and this also causes buyers to drop their prices.
One concern that also plays a big factor is the land reform situation.
This is one of the major concerns for buyers looking at farm properties and these properties have been attracting a lot of international attention as many of them can generate some income for the buyer.
With land reforms being called for, those international as well as local buyers stay hesitant when investing in South African properties.
There are quite a number of negatives when it comes to the influence that our politics have on the real estate market, but we continually see great improvements in the market, not only from local buyers but internationally as well, he says.
"Engel & Völkers have a very large international referral system and we have seen some real interest from international buyers especially from Germany and other parts of Europe," adds Hutchison.
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