Load shedding in South Africa has not only disrupted daily life but has also influenced property market dynamics. Renier Kriek, the Managing Director at Sentinel Homes, highlights the intricate relationship between home enjoyment during blackouts and the long-term value of a property. Here’s a closer look at how load shedding impacts the property market.
The Impact of Load Shedding on South Africa’s Property Market
The Non-Financial and Financial Effects
Load shedding affects households both in non-financial and financial ways. On the one hand, it may lead to challenges like ineffective studying or the boredom of not having entertainment during blackouts.
On the other hand, the financial impact is more quantifiable. Longer commute times due to non-functional traffic lights, eating out more frequently to compensate for cooking difficulties, and increased expenses caused by food spoilage in non-functioning refrigerators are some of the consequences. Security concerns may also prompt homeowners to invest in better physical security systems.
Investing in Alternative Energy Solutions
Given the challenges posed by load shedding, many households are turning to alternative energy solutions like inverters, generators, and solar panels. These investments not only provide convenience but also offer financial benefits. In the future, these considerations will be at the forefront of potential buyers’ minds.
Property Buying Trends
Buyers who can afford it often prefer homes in gated estates to ensure security during load shedding. This preference can make selling a standalone house in the same price range more challenging.
Properties equipped with alternative energy solutions or suitable for such installations are in higher demand among buyers.
South-facing roofs, which receive less sunlight for solar power systems, may affect a property’s value. However, alternatives like gas appliances can offset this limitation. The location is also a crucial factor, with areas offering more reliable electricity infrastructure and supply attracting buyers.
Ensuring a Smooth Sale
To maintain a property’s market value and attract buyers, homeowners should hire registered energy-solution experts. Incorrectly installed or maintained systems could lead to property damage or fires.
Checking the installer’s credentials with the industry body, such as the South African Photovoltaic Industry Association for solar power systems, is recommended.
Additionally, obtaining a certificate of compliance from a qualified professional is advisable when selling a property. These measures will likely remain important as long as load shedding continues to impact South Africa’s property market.