Buying real estate in Adelaide?

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17 strong reasons to buy property in Adelaide in 2025

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Authored by the expert who managed and guided the team behind the Australia Property Pack

buying property foreigner Australia

Everything you need to know before buying real estate is included in our Australia Property Pack

Why is Adelaide emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the city's growing appeal as a cultural hub, or the relative affordability compared to other Australian cities? What are the key benefits for investors?

We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.

Our goal is to provide a clear case for investing in Adelaide's property market, backed by our firsthand experience and market knowledge.

If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.

Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

How this content was created 🔎📝

At BambooRoutes, we study the Adelaide real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

Our process started with insights drawn from these conversations and what we observed firsthand. Then, to make our points more solid, we turned to trusted sources like the Minister for Defence, the City of Adelaide, and the Premier of South Australia (among many others).

We only include reasons to invest that are backed by credible sources, solid context, and clear information.

If we can’t find enough supporting data or context, we leave it out. There’s no point in presenting vague claims or overly optimistic assumptions that don’t hold up to scrutiny. Our goal is to provide you with a reliable and well-researched analysis of why this market is a smart choice for property investment—not just a list of unsupported ideas.

Every source and citation is clearly listed because we believe in transparency and want you to have the tools to dig deeper if you wish (we always encourage you to conduct your own research).

We also use a bit of AI during the writing process. This ensures that our explanations are clear and free from grammar or syntax errors, giving you content that’s easy to read and understand.

To make the information even more engaging, our team has crafted bespoke infographics that aggregate, summarize, and visualize key market trends. These visuals highlight why this market is such a strong investment opportunity. We hope you’ll find them useful! All additional illustrations and media were designed in-house to ensure the highest quality and relevance.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Adelaide’s beaches and coastal lifestyle make its properties highly desirable for locals and tourists alike

Adelaide's coastal lifestyle and beaches are a major attraction for both residents and tourists, boosting property desirability in these areas.

In suburbs like Somerton Park, property prices have skyrocketed by 130% over the past decade, showing a strong demand for beachside living. This surge is fueled by interest from both interstate and international buyers who are drawn to Adelaide's appealing coastal lifestyle.

Short-term rentals in Adelaide's beachside areas are thriving, with a median occupancy rate of 71% and an average daily rate of AU$203. This indicates that tourists are eager to experience the coastal lifestyle, further enhancing the appeal of these properties.

Adelaide's beaches are consistently ranked among the top attractions, reflecting a strong preference for coastal living among residents. This preference not only drives up property values but also increases demand in coastal suburbs.

Regular media coverage showcasing Adelaide's coastal attractions plays a significant role in boosting the appeal of these areas, driving up property prices and demand.

With over 3.8 million visitors in 2024, the high occupancy rates in coastal holiday accommodations highlight the popularity of Adelaide's beaches among tourists.

Sources: Environment SA, Airbtics, Camper Champ, Realestate.com.au

2) In Adelaide, you’ll find a mix of heritage homes and modern apartments to suit any buyer's taste

Adelaide offers a mix of heritage homes and modern apartments that appeal to a wide range of buyers.

The City of Adelaide's Adaptive Reuse City Housing Initiative, or ARCHI, is a key player in preserving the city's historic charm. By turning old, underused buildings into homes, ARCHI not only saves history but also meets the rising demand for heritage properties. Buyers who love a touch of history find these homes irresistible, especially with government incentives sweetening the deal.

Meanwhile, modern apartments are making waves in the urban landscape. Developments like Victoria Tower Adelaide and Quayview on Adelphi are not just about a place to live; they offer luxurious amenities and stunning views. These features are a magnet for those who crave a contemporary lifestyle, and the trend of converting empty office spaces into apartments keeps the market fresh and exciting.

Adelaide's real estate listings are a testament to its architectural diversity. Whether you're into the charm of a heritage home or the sleek lines of a modern apartment, there's something for everyone. This variety is backed by positive buyer feedback and market growth, showing that both heritage and modern properties are in demand.

Government support and urban development plans play a crucial role in this dynamic market. They ensure that Adelaide continues to offer a steady supply of diverse housing options, meeting the needs of different buyers. The city's ability to blend the old with the new makes it a unique place to invest in property.

With such a rich mix of architectural styles, Adelaide stands out as a city that caters to varied tastes and preferences, making it an attractive option for potential buyers.

Sources: City of Adelaide, Urban.com.au

infographics rental yields citiesAdelaide

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

3) In Adelaide, low vacancy rates mean you can expect steady rental returns

Adelaide's rental market is booming with impressively low vacancy rates.

As of February 2024, the vacancy rate in Adelaide was a mere 0.5 percent, making it one of the lowest in the country. This means that rental properties are rarely empty, indicating a high demand from tenants. When vacancy rates are this low, landlords often see rising rental prices, which is great news if you're considering investing in property here.

From September 2023 to September 2024, the median advertised rent in Adelaide jumped by 10.5 percent, reaching $580 per week. This was the second-largest increase among Australian capital cities, suggesting that landlords can expect consistent returns on their investments. Real estate agencies like PropTrack confirm that Adelaide's rental market is one of the tightest in the country.

With vacancy rates consistently below 1 percent, there's a strong tenant demand, which is crucial for maintaining a healthy rental market. Adelaide's vacancy rate is also significantly lower than the national average, which was 1.42 percent in July 2024. This shows that Adelaide is outperforming many other cities in terms of rental market strength.

For those looking to invest, Adelaide offers a promising opportunity with its low vacancy rates and rising rents. The city's rental market is not just strong; it's thriving, making it an attractive option for property investors seeking reliable returns.

Sources: Realestate.com.au, Realestate.com.au

4) Adelaide’s stable economy, supported by industries like defense, healthcare, and education, boosts its property market

Adelaide's property market is thriving, thanks to its stable economy supported by diverse industries.

The defense industry is a major player, contributing $10.6 billion to the economy in 2022-23, which is a 4.1% increase from the previous year. This growth has also created 900 new jobs in South Australia, making it a key driver of economic stability.

Healthcare is another cornerstone of Adelaide's economy, employing 62,000 people and expanding with new facilities to meet rising demand. This sector not only provides jobs but also supports the local economy, much like the booming education sector, which is seeing more students and boosting local businesses and housing demand.

Government investments are crucial, with projects like the Osborne Naval Shipyard showcasing a commitment to the defense sector, creating jobs and stimulating the economy. In healthcare, government funding for new facilities ensures continued growth, while education benefits from policies that attract students and professionals, driving housing demand.

Adelaide's property market mirrors this economic stability. In May 2024, property values rose by 14.76%, with the median dwelling value hitting $813,716. This growth is driven by strong population growth and limited housing supply. The rental market is tight, with a vacancy rate of just 0.83%, the lowest in the country, leading to high rents.

Population growth and migration trends further bolster the property market. Adelaide's diverse economy and high quality of life make it an attractive destination, boosting the local population and housing demand. Government policies, like the First Home Owner Grant and rental law reforms, also play a role in supporting the property market.

Sources: Savings.com.au, Minister for Defence, Boffo Real Estate

5) Adelaide’s location as a gateway to the Outback and wine regions boosts its tourism potential

Adelaide is perfectly positioned as a gateway to the Outback and wine regions, boosting its tourism potential.

In 2023, the Barossa Valley, a renowned wine region near Adelaide, welcomed 105,000 interstate overnight visitors who stayed for an average of 3.3 nights. This influx of tourists shows the region's charm, thanks to its rich wine and cultural heritage.

Tourism in South Australia is thriving, with regional visitor spending hitting a record high of $3.98 billion in 2023. This marks a 12% increase from pre-COVID levels, highlighting the economic benefits of tourism in areas like the Barossa Valley.

Adelaide's appeal is further enhanced by its direct air access with major international carriers, making it a breeze for global travelers to visit. The city's connectivity, along with its proximity to famous wine regions and the Outback, makes it a top choice for those seeking varied experiences.

For wine lovers, the Barossa Valley is a must-visit, offering not just exquisite wines but also a taste of local culture. The region's ability to draw in visitors is a testament to its unique offerings and Adelaide's strategic location.

Whether you're exploring the vast Outback or indulging in world-class wines, Adelaide serves as the perfect starting point. Its strategic position and easy access make it an ideal destination for diverse adventures.

Sources: Tourism SA, Tourism SA

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6) In Adelaide, you can find affordable properties with better capital growth potential than in other Australian capitals

Adelaide's property market is a hidden gem compared to other big Australian cities.

In 2023 and 2024, Adelaide's median house price was much lower than Sydney's, making it a great pick for those seeking affordability. While Sydney and Melbourne are known for their sky-high prices, Adelaide offers a more budget-friendly option without compromising on lifestyle.

Despite these lower prices, Adelaide's property market has been on the rise. In 2024, prices jumped by 13.1%, while Sydney and Melbourne saw much smaller increases or even declines. This trend continued into the last quarter of 2024, with Adelaide's home values growing by 2.1%, while Sydney and Melbourne experienced drops.

Looking to the future, experts predict that Adelaide's market could grow another 8-13% in the next year. This potential is fueled by strong population growth, new infrastructure projects, and a lower cost of living, making Adelaide an attractive choice for both residents and investors.

Adelaide's charm lies in its balance of affordability and growth potential. The city is not just about cheaper homes; it's about a lifestyle that offers more for less. With its vibrant culture, beautiful landscapes, and a community feel, Adelaide is becoming a top choice for those looking to invest in property.

For those considering a move or investment, Adelaide's property market offers a promising future. It's a city where you can enjoy the benefits of a capital city without the hefty price tag, making it a smart choice for savvy buyers.

Sources: InDaily, Savings.com.au, Property Update, Domain

7) Adelaide’s commitment to sustainable development secures long-term growth and stable property values

Adelaide is making waves in sustainable urban development, ensuring long-term growth and stable property values.

The city is investing heavily in green infrastructure, with the South Australian government aiming to boost urban green cover by 20% by 2045. By 2024, they were already mapping out existing canopy levels and exploring ways to enhance them, focusing on corridors that encourage active travel. This commitment to greenery not only beautifies the city but also enhances property values.

Adelaide's energy policies are another game-changer. Since 2020, the city has been running on 100% renewable energy, thanks to wind and solar farms. The 2023 Carbon Neutral Adelaide Action Plan introduced 104 actions, including energy-efficient buildings and promoting walking and cycling. These initiatives cut emissions and make the city more appealing to both residents and investors.

Eco-friendly housing is on the rise, with a growing demand for green homes in Adelaide by 2024. Homeowners are increasingly interested in environmentally friendly housing solutions that incorporate green building practices and energy-efficient designs. This shift towards sustainable living environments is a key factor in maintaining property value stability.

Adelaide's focus on sustainability is not just about the environment; it's about creating a vibrant, livable city that attracts people and investment. The city's efforts in green infrastructure and renewable energy are setting a benchmark for urban development.

For potential property buyers, Adelaide offers a unique blend of sustainability and growth, making it an attractive option for those looking to invest in a city with a forward-thinking approach to urban living.

Sources: Green Infrastructure Commitment, REN21 Cities, Hirch Property Group

8) First-time homebuyers get government incentives, boosting market activity and demand

The government is offering attractive incentives for first-time homebuyers to stir up the property market.

In South Australia, there's a sweet deal called the First Home Owner Grant (FHOG). It's been bumped up to $15,000 for new homes under $650,000, and from late 2023 to mid-2025, it's even doubled to $30,000. This is a clever move to get more first-time buyers excited about jumping into the market.

On top of that, they've scrapped stamp duty for first-home buyers on new homes up to $650,000 or vacant land up to $400,000. This makes it financially easier for newcomers to step into the property scene, boosting demand for new homes.

Real estate agencies are buzzing with inquiries from first-time buyers, and they say it's all thanks to these government incentives. Economic studies back this up, showing that these measures are effective in driving up market activity.

For those eyeing a property in the country, these incentives are a game-changer. They not only make buying a home more affordable but also increase the overall demand in the housing market.

So, if you're thinking about buying your first home, now might be the perfect time to dive in. With these incentives, the market is more accessible than ever.

Sources: Premier of South Australia, Realestate.com.au, NHSAC, Uno Home Loans

statistics infographics real estate market Adelaide

We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

9) Adelaide’s cultural festivals draw visitors, making short-term rentals more appealing

Adelaide's cultural festivals and events are a huge draw for visitors, making short-term rentals in the city more appealing than ever.

In 2024, the Adelaide Festival shattered attendance records with nearly 480,000 people joining the festivities, almost doubling the previous year's numbers. This surge included over 55,000 interstate visitors, leading to a 10% boost in hotel occupancy compared to the 2023 Fringe season.

These festivals don't just bring in crowds; they also have a big economic impact. For example, the 2023 Adelaide Festival added nearly $60 million to the state economy, with visitor bed nights climbing to 105,943. People are spending more during these lively events, showing their willingness to indulge in the vibrant atmosphere.

Short-term rentals, like those on Airbnb, see a big uptick in demand thanks to these events. Typically, a short-term rental in Adelaide is booked for 259 nights a year, with a median occupancy rate of 71%. During festival times, these numbers likely soar, offering hosts a chance to earn significantly more.

In 2023, the average host income was AU$51K, highlighting the lucrative potential of short-term rentals during festival seasons. This makes it a great time for property owners to consider entering the short-term rental market.

With the city's cultural festivals and events drawing in visitors, short-term rentals are becoming an increasingly attractive option for both hosts and guests.

Sources: InDaily, InDaily, Airbtics

10) Adelaide’s wine and food scene attracts tourists, making short-term rentals a great opportunity for you

Adelaide's wine regions, like the Barossa Valley and McLaren Vale, are drawing over 2 million visitors each year.

This surge of tourists means there's a strong demand for places to stay, especially short-term rentals, as people explore these famous wine areas.

Adelaide's food scene is also making waves, thanks to events like the Adelaide Food Festival and the Halal Food Festival in 2023.

These festivals celebrate a mix of cuisines and attract food lovers from all over, which boosts tourism and the need for short-term rentals.

Visitors are happy with their stays, as shown by positive reviews and high occupancy rates in these busy tourist spots.

This satisfaction is fueling the growth of the short-term rental market, helping the local economy and giving property owners more opportunities.

Sources: Halal Times, Australian Tourism, Lenox Avenue

11) Adelaide’s infrastructure projects like the North-South Corridor improve connectivity and increase property values

Adelaide's infrastructure projects, like the North-South Corridor, have made getting around the city a breeze.

With better roads and public transport, travel times are down, and it's easier than ever to access different parts of the city. This convenience is a big draw for people looking to live or invest here.

Thanks to these improvements, property values in Adelaide have jumped. By August 2024, the median property price hit $768,000, a 15.1% rise from the previous year. In suburbs like Salisbury East, unit prices soared by 46.6%, and house prices climbed 21.2% in just 12 months.

The Australian Government has poured over $7.5 billion into the North-South Corridor since 2008, showing just how crucial these projects are. This kind of investment not only boosts connectivity but also fuels economic growth and job creation, making Adelaide a hot spot for newcomers and investors.

As more people flock to the city, housing demand rises, pushing property prices even higher. This is great news for homeowners and investors who are seeing their property values increase.

Adelaide's strategic infrastructure upgrades are clearly paying off, making it a prime location for anyone looking to buy property.

Sources: We Connect Property, Hirch Property Group, Realestate.com.au

Don't buy the wrong property, in the wrong area of Adelaide

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housing market Adelaide

12) Major sporting events and facilities drive economic growth and increase property interest

Major sporting events and facilities can significantly boost local economies and property interest.

Take the $17 million upgrade to Alberton Oval, for example. This investment not only improved the venue but also increased its capacity, drawing more spectators and visitors. As a result, local businesses thrive, and the community buzzes with energy.

In places like Mount Barker and Seaford, new sports complexes have sparked a rise in property values. Real estate agents report a surge in interest from buyers, especially families, who view these areas as perfect for settling down. This isn't just happening here; it's a trend seen wherever sports facilities pop up.

When big sporting events roll into town, there's a noticeable spike in demand for short-term rentals. Tourists want to stay close to the action, which means property owners see a nice boost in income. This influx of visitors also pumps money into the local economy.

Building sports facilities isn't just about the games; it creates jobs too. In South Australia, infrastructure projects have supported 86 full-time jobs, showing how these developments benefit the community beyond just sports.

Sources: Broadland Estates, Premier of South Australia, Deloitte, Office for Recreation, Sport and Racing

13) Adelaide’s focus on renewable energy projects attracts eco-conscious investors

Adelaide is a hotspot for eco-conscious investors thanks to its strong focus on renewable energy.

The city has teamed up with Flow Power to ensure 100% of its operations run on renewable energy. This partnership is a major attraction for investors eager to back sustainable projects. Adelaide's commitment doesn't stop there; the city also offers a range of government incentives to make renewable energy more accessible. These incentives include discounts on solar panel installations and rebates for energy-saving technologies, making it easier and cheaper for both homes and businesses to go green.

Adelaide's leadership in renewable energy is well-recognized, having earned an ‘A’ score for its climate report. This achievement not only sets a high standard for other cities but also underscores Adelaide's dedication to sustainability. The city is home to major renewable energy companies and has strong partnerships with the private sector, reinforcing its status as a green investment hub.

For those considering a move to Adelaide, the city's commitment to renewable energy is a significant draw. The financial benefits from government incentives make it an attractive option for anyone looking to invest in a sustainable future. With its robust infrastructure and supportive policies, Adelaide is paving the way for a cleaner, greener tomorrow.

Investors and residents alike can take advantage of the city's forward-thinking approach to energy. The combination of government support and private sector involvement makes Adelaide a leader in the renewable energy space. This proactive stance not only benefits the environment but also offers financial advantages to those who choose to invest in the city.

Adelaide's focus on renewable energy is more than just a trend; it's a commitment to a sustainable future. The city's efforts to promote clean energy solutions make it a prime location for eco-conscious investors looking to make a positive impact.

Sources: City of Adelaide, Solar Calculator, REN21

14) Adelaide's growing population from interstate migration boosts housing demand

Adelaide's population is on the rise, thanks to a wave of interstate migration.

In 2025, the city's metro area population hit 1,393,000, marking a steady increase of 1.02% from the previous year. This growth is a testament to Adelaide's growing appeal, drawing more people from other parts of Australia.

Interstate migration is a major driver of this trend. After a slowdown during the COVID-19 pandemic, migration is picking up again. By 2025–26, it's expected that around 450,000 people will move interstate, with South Australia reaping the benefits of this influx.

As more people flock to Adelaide, the demand for housing is climbing. The real estate market is feeling the heat, with median house prices on the rise. In November 2023, there was a +0.7% increase in house prices, contributing to a quarterly growth of +2.6%.

Major banks are predicting that property prices will continue to grow strongly, signaling a sustained high demand for housing. This trend is making Adelaide an attractive spot for potential property buyers looking to invest in a thriving market.

With its increasing population and booming real estate market, Adelaide is becoming a hotspot for those seeking new opportunities and a vibrant lifestyle.

Sources: Macrotrends, AIHW, OpenAgent

infographics comparison property prices Adelaide

We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

15) Adelaide’s community vibe and lifestyle make it a top choice for long-term residents, ensuring steady demand

Adelaide is a magnet for long-term residents thanks to its strong community focus and appealing lifestyle.

In 2024, Adelaide was celebrated as the 11th most liveable city in the world, a nod to its high quality of life. This accolade underscores the city's charm and livability, making it a top choice for those seeking a balanced lifestyle.

Adelaide's population is steadily growing, thanks to smart urban planning that welcomes new residents. The city's Strategic Plan emphasizes community engagement, creating a sense of belonging that encourages people to put down roots. This community vibe is bolstered by low unemployment rates, offering residents security and stability.

Education and healthcare are pillars of Adelaide's appeal, with universities and hospitals providing excellent services and training. This draws families and professionals who prioritize quality education and healthcare, enhancing Adelaide's reputation as a family-friendly city.

Low crime rates and high satisfaction with lifestyle make Adelaide an attractive place to live. Residents enjoy a safe environment and a fulfilling lifestyle, which keeps the demand for housing steady.

Sources: SA Health, City of Adelaide Strategic Plan, Royal Adelaide Hospital, Committee for Adelaide, Migration SA

16) Adelaide’s tech hubs and innovation areas draw professionals, boosting housing demand

Adelaide is buzzing with excitement as it becomes a hotspot for tech innovation.

The city is seeing a surge in tech professionals flocking to its innovation precincts, thanks to significant investments in the sector. With the tech industry employing thousands and generating billions in revenue, Adelaide is becoming a magnet for talent. This growth is fueled by a notable increase in investment, reflecting a strong commitment to expanding the tech landscape.

One standout development is Lot Fourteen, which is set to house a $400 million Entrepreneur and Innovation Centre. This hub is not just a workplace; it's a thriving ecosystem that supports both established businesses and startups. The infrastructure here is designed to foster innovation and attract new ventures, making it a key player in Adelaide's tech scene.

As these tech hubs grow, so does the demand for housing. Professionals moving to Adelaide for these opportunities are driving up the housing market. The demand has already outpaced the available supply, a trend that's expected to continue as more people seek to live close to their workplaces.

Adelaide's tech boom is not just about jobs; it's reshaping the city's landscape. The influx of professionals is creating a vibrant community, with new housing developments springing up to meet the demand. This growth is a testament to the city's appeal as a place to live and work.

For those considering a move, Adelaide offers a unique blend of career opportunities and lifestyle. The city's tech hubs are not just attracting talent; they're transforming Adelaide into a dynamic place to call home.

Sources: AEDASA, NHSAC, Nucamp

17) With expanding public transport, properties become more accessible and valuable

Expanding public transport networks can make a city much easier to navigate.

When new services like the Port Dock rail extension or the T800 bus service in Adelaide are introduced, it becomes simpler for people to reach various parts of the city. This means getting to work, school, or even just heading out for fun is more convenient, which is a huge benefit for any neighborhood.

As areas become easier to access, they often become more attractive places to live. This increased appeal can lead to a rise in property values. For instance, the Port Dock rail extension attracted over 50,000 passengers in its first month, hinting that nearby areas are now more appealing to potential homebuyers. Similarly, the T800 bus service has seen a noticeable uptick in daily boardings, showing that neighborhoods along its route are gaining popularity.

Research from the past few years, including insights from the Department for Infrastructure and Transport, highlights a clear link between public transport access and rising property prices. As more people opt for public transport, areas with good connectivity tend to see a boost in property values. This isn't just happening in Adelaide; it's a trend seen in many cities around the globe.

Sources: InDaily, Hirsch Property Group, Department for Infrastructure and Transport

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.