Kerry Dimmer
After a steadier 2025, industry leaders expect 2026 to bring stronger momentum to South Africa’s residential market, supported by improved affordability, easing interest rates, and clear regional outperformance in key areas.
From price growth and building activity to rentals and buyer behaviour, here’s what top property voices are watching in the year ahead.
John Loos, Property Economist, FNB
“I expect the SA property market in 2026 to perform mildly stronger than 2025 in terms of investor demand, volumes of sales, and capital growth alike. This expectation is based on the lagged impact of what we believe was mildly stronger economic growth in 2025 than in 2024, along with the full effects of recent interest rate cuts in 2025 still to feed through into investor demand.
In addition, we expect a further 25 basis point interest rate cut early in 2026 and a mild further acceleration in economic growth in 2026.
The Western Cape is again expected to be the clear outperformer in the property market as a whole. The Southern Cape part of the province (including George, Mossel Bay, etc.) is outperforming, with semigration having partly shifted to that sub-region in recent years. I will be looking to see if certain Eastern Cape coastal towns see their emigration activity pick up as affordability in Cape Town and surrounding towns deteriorates.
On the residential building side, I expect the strongest building activity to be in the Western Cape Province, due to the best property returns and the most acute shortage. Western Cape house price growth has been heading towards double-digit rates in recent times, according to Stats SA data, outstripping the other major markets by far. A strong new residential supply response in the Western Cape should thus be expected in 2026.”
Samuel Seeff, Chairman, Seeff Property Group
“I am expecting a robust recovery for the housing market in 2026, with the Cape region maintaining its strength, while Gauteng will continue to lag until service issues are resolved.
2026 will be a better year than 2025, provided positive economic fundamentals hold. Still, it will largely remain a tale of two markets: the Cape, a seller’s market, and the rest of the country, including Gauteng, a buyer’s market.
The rental market is expected to continue its strong performance in 2026, boosted by the ongoing influx of people into cities and larger towns. Rental growth should be positive, while stock shortages in the high-demand areas will be favourable for those looking to invest in the rental market.
The series of interest rate cuts since mid-2024 has been crucial in providing vital relief to the economy and consumers. These cuts have lowered the cost of debt, freed up disposable income, and directly improved property affordability.
For buyers and investors, our advice is clear: don’t wait for further cuts. Those who wait too long may end up regretting not acting when the opportunity presents, as property prices continue rising.”
Bradd Bendall, National Head of Sales, BetterBond
“With interest rates stabilising at multi-year lows, buyer confidence strengthening, and regional markets showing powerful growth patterns, 2026 is likely to bring sustained momentum and increased accessibility for more homebuyers. The prime lending rate is now 150 basis points lower than it was at the beginning of September last year.
Improved affordability in 2025 has set the scene for a more accessible, buyer-friendly market. Our data shows that, compared to the last quarter of 2024, average home prices have increased by 2.8%, slightly lower than the current consumer price index (CPI). This suggests a continuation of a market environment that favours buyers.
All eyes will be on Tshwane in 2026 to see whether the impressive 27% year-on-year increase in bond approvals recorded this year will continue. It will also be interesting to watch whether the rapid uptick in home loan activity in the Free State and Northern Cape continues into 2026.
The latest bond values bode well for a strong start to 2026, with all regions reporting average bond values above R1 million, according to our November data. The Western Cape’s average bond value of R1.75 million continues to widen the gap with other regions.”
Dr Andrew Golding, Chief Executive, Pam Golding Properties
“On the back of November’s (2025) interest rate reduction, with further cuts anticipated by mid-2026 and supported by a new 3% inflation target indicating greater price stability, we saw 2025 end with a more buoyant close. This was supported by increased affordability for home loan seekers, a stronger lending appetite by the banks, South Africa’s removal from the FATF Grey List, and S&P’s first credit rating upgrade in 20 years.
While it is difficult to forecast with accuracy at the moment, it seems likely that the pace of local economic activity will strengthen somewhat this year and that there may be further interest rate relief during the first half of 2026.
Overall, while the market is stabilising and showing pockets of vibrancy, a sustained recovery will depend on broader economic improvements, policy certainty, and continued financial sector support. Gauteng’s housing market remains under pressure due to ongoing service delivery failures, and improved confidence there will be key.”
Chris Tyson, CEO, Tyson Properties
“Against a background of more positive economic fundamentals than a year ago, I believe that the residential property market is on the cusp of renewal. Here are six reasons why 2026 will be a different year for all of us on the property ladder:
Confidence sells: The general feeling is that confidence is on the up.
Rates are attracting interest: A continued interest rate-easing cycle supports predictability and encourages buyers who have been sitting on the fence.
Service delivery matters: The upcoming local government elections, due at the end of 2026, may drive short-term improvements in service delivery, though sustainability remains the real test.
Return-to-office is shifting behaviour: While remote work continues, more employees are returning to offices, which may boost commercial property and increase demand closer to business hubs.
Banks are lending more willingly: With income growth potentially outpacing inflation in 2026, buyers may have greater long-term purchasing power.
First-time buyers are coming back: Greater affordability and contained inflation are expected to encourage first-time buyers to enter the market.”
Adrian Goslett, Regional Director and CEO, RE/MAX Southern Africa
“With the momentum gathered in 2025, our expectation is for continued but measured growth into 2026. Key risk factors remain: interest rate policy, inflation, consumer confidence, and regional supply-and-demand imbalances.
For buyers, the lesson is clear: those who can enter the market early will have a strategic advantage over those who wait for interest rates to drop further and drive higher demand.
Despite positive signals, the broader economy remains cautious. The lesson is not to over-leverage, because conditions can change quickly. For property investors, this means understanding debt servicing risks and focusing on fundamentals such as location, quality, and cash flow.”
Stephen Whitombe, MD, FIRZT Realty
“Falling interest rates over the past year have brought many new buyers into the market. Lower interest rates also tend to drive higher rental increases. Once rentals start to equal bond repayments for the same type of property, many tenants are encouraged to become homeowners.
The first-time buyer sector is likely to be the busiest in 2026. Figures show they already account for almost 50% of all bond applications, and we think this will be closer to 60% in 2026.
We are also seeing a strong trend towards downsizing in the middle-income market, with an increasing number of suburban homeowners finding themselves house-rich and cash-poor. This is expected to drive demand for more compact, lower-maintenance properties in estates and complexes, as well as densification through subdivision and redevelopment.
We also foresee that the rental sector will thrive and become increasingly attractive to investors.”
Berry Everitt, CEO, Chas Everitt International Property Group
“The next 12 months are not going to be defined by booms or busts, but by the steady separation of areas and property types that offer real value and security from those that do not. Confidence, functional infrastructure, and good governance will increasingly determine where investment flows.
Secure complexes and lifestyle estates will remain highly sought-after, driven by safety and wellness. Luxury now includes resilience, with buyers looking for homes and communities that function independently, with security, solar energy, and water solutions built in.
Buyer behaviour has shifted: security, quality of life, and service reliability are now non-negotiables. Technology is also reshaping the industry, where speed to lead determines success.”
Grant Smee, CEO, Only Realty Property Group
“Five trends poised to reshape the market in the year ahead:
House price inflation stabilises: We expect price growth to remain evident in the low- to
mid-purchase price bands, particularly for well-priced coastal homes supported by semigration demand.
Rentvesting grows: Young investors are expected to keep buying in affordable areas to generate rental income while renting where they want to live.
Return-to-office supports sectional title: Proximity is becoming more valuable, and sectional title remains a more affordable entry point, particularly off-plan.
Foreign buyers look to Gauteng: As the country’s economic hub, Gauteng is well-positioned to attract increased foreign investment.
Short-term rental regulation returns: We expect renewed calls for stricter short-term letting rules, with pressure on metros to balance tourism with residential needs.”
