There’s quite a bit of optimism in the South Africa’s property market at the start of this year. Not only are further interest rate cuts expected as inflation subdues, but also evidence that macroeconomic conditions will improve, given a stronger currency performance and SA’s removal from the Financial Action Task Force greylist.
Alongside is evidence that foreign buyers perceive the country’s residential property market as excellent value, particularly the high-end market. The banks are also offering competitive lending conditions, including lower deposit requirements which is enticing first time buyers to enter the realm of homeownership.
Private Property asked some notable real estate voices to give us their predictions for this market in 2026.
Bradd Bendall, BetterBond’s National Head of Sales:
“After a year marked by renewed vigour in South Africa’s housing market, BetterBond is confident that 2026 will build on the strong recovery seen throughout 2025.
Improved affordability in 2025 has set the scene for a more accessible, buyer-friendly market. The buyers’ market is likely to continue in 2026, with BetterBond’s data showing that compared to the last quarter of 2024, average home prices have increased by 2.8%, which is slightly lower than the current consumer price index (CPI). This suggests a continuation of a market environment that favours buyers.”
John Loos, property economist at 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. In addition, FNB expects another 25 basis point interest rate cut early in 2026, and mild further acceleration in economic growth in 2026.”
Berry Everitt, CEO of the Chas Everitt International property group
“There is a quiet but growing sense of realism emerging. It is becoming very clear that the next 12 months are not going to be defined by any booms or busts, rather by the steady separation of areas and property types that offer real value and security from those that do not. The fundamentals of confidence, functional infrastructure, and good governance will increasingly determine where investment flows - and where it doesn’t.
The direction of this year is clear: growth will follow confidence, confidence will follow good governance, and where infrastructure and sustainability meet, the market will flourish.”
Chris Tyson, Tyson Properties CEO
“2026 promises to be better than 2025. Against a background of far more positive economic fundamentals than a year ago, I believe that the residential property market is on the cusp of a renewal and a different year for all of us on the property ladder based on six reasons: rising confidence; interest rate easing cycles; the performance of local municipalities given upcoming local elections; more employees considering moving closer to commercial centres; a growing appetite by banks for lending; and the return of first-time homebuyers.
Stephen Whitombe, MD of the FIRZT Realty group
“The first-time buyer sector is likely to be the busiest in 2026. Figures show that they already account for almost 50% of all bond applications now 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 to limit the effects of rapidly rising running costs with an increasing number of suburban homeowners finding themselves ‘house rich and cash poor’. We think this will continue to drive strong demand for more modern, compact and lower maintenance properties in complexes and estates. We also foresee that the rental sector will thrive and become increasingly attractive to investors.”
Samuel Seeff, chairman of the Seeff Property Group
“2026 will be better year than 2025 provided positive economic fundamentals hold, but it will largely remain a “tale of two markets,” with the Cape a seller’s market, and the rest of the country, including Gauteng, largely a buyer’s market.
The rental market is expected to continue its strong performance in 2026, boosted by the continued influx of people to the cities and bigger 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.
Don't wait for further cuts. Those who wait too long may end up regretting not taking the leap when the opportunity presented.”
Dr Andrew Golding, chief executive of the Pam Golding Property group
“While it is particularly difficult to forecast with any accuracy at the moment, it seems likely that the pace of local economic activity will strengthen somewhat and that there may well 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.
2026 looks like it will continue to offer good prospects in the property market, as interest rates continue to decline and SA’s GDP and revenue collections continue to increase, which taken together provide for a stable and encouraging outlook for 2026.”
Grant Smee, CEO of Only Realty Property Group
“My five trends poised to reshape the market in the year ahead are: house price inflation will stabilise; Gen Z’s appetite for ‘rentvesting’ will be fuelled by social media - rentvesting is whereby young investors purchase buy-to-let properties in more affordable areas to generate passive income while renting homes that align with their desired lifestyle; foreign buyers will be turning their eyes towards Gauteng; sectional title demands with more people returning to the office or closer to those; and the expectation of greater regulation on short-term rentals.”
Adrian Goslett, Regional Director and CEO of REMAX Southern Africa
“Our expectation is for continued but measured growth into 2026. Key risk-factors remain, however: interest-rate policy, inflation, consumer confidence, and regional supply/demand imbalances. But, for the well-informed buyer, seller or investor, the near-term window offers opportunity.
While the market is not without its challenges, there are clear and actionable lessons emerging for homeowners, investors and developers. In 2025, one of the most important catalysts for activity was improved affordability owing to interest rate cuts. For buyers, the lesson is clear: those who can enter the market early will have a strong strategic advantage over those who wait until interest rates drop further and cause even higher demand (which inevitably will inflate property prices further.”
