It’s fair to say 2025 kept the property industry on its toes. Ongoing global uncertainty, measured consumer spending, and an economy only just starting to recover made for a cautious year.
Looking ahead, however, Prop Data’s latest poll shows a brighter picture. Among property practitioners, 70% say they feel “optimistic” about 2026, with an additional 14% describing their outlook as “very optimistic”.
Strong end set the stage for 2026
The upbeat sentiment reflected in the poll isn’t surprising, given how 2025 wrapped up and laid the groundwork for growth in 2026. “A sustained improvement in the electricity supply, a soaring gold price, and better governance and fiscal policy definitely put South Africans in a good festive mood,” says Chris Tyson, Founder and CEO of Tyson Properties.
“Higher economic growth prediction from government and a new inflation target that suggests lower food and household costs will also bring relief and even make it easy for first-time buyers to reach their goals.”
Falling interest rates boost market activity
Much of the renewed energy in the market can be traced back to declining interest rates. “The protracted drop in interest rates throughout 2025 stimulated buyer appetite,” says Tyson. “By the end of 2025, homeowners were saving up to R1000 per R1 million on their home loans.”
With eyes now on 2026, Trish Kennedy, Principal and Owner of Zest Property Group, believes property practitioners are also seeing positive signs on the horizon. “Many of the prominent and imminently well qualified economists are predicting an upturn both economically and politically in 2026,” she says. “This, in turn, has also given rise to the prediction that interest rates will also be cut at least twice during the course of the year.”
Buyer confidence is also on the rise
Despite low economic growth and disposable income pressures, property practitioners are seeing an uptick in market momentum. “There are clear indications that buyer activity is increasing, affordability is improving, and consumer and business confidence is rising,” says Herschel Jawitz, CEO of Jawitz Properties. “This is contributing to a better outlook for the country and consumers in 2026, which will filter down into improved demand in the residential market and a gradual recovery in property prices.”
From their offices and showrooms, practitioners are already sensing a noticeable shift. “Buyers are back out viewing properties, phones are ringing more, and people are making decisions instead of sitting on the fence,” shares Renata Milanesi, Principal and Director of R and R Real Estate. “Because interest rates have stopped climbing, this has taken a lot of fear out of the market, and that alone brings confidence back.”
Milanesi also points to the long-term stability of property as a key factor. “Real estate remains a safe place for people to put their money, especially in uncertain times. When you add lifestyle buyers and people finally ready to move after a few slow years, it creates a very positive energy going into 2026,” she adds.
Taking a more measured view, Kyle Leigh, Founder and Managing Director of The Agency Property Group, says while there’s growing optimism nationally, it’s important to recognise that the experience differs by region. “In Cape Town’s coastal markets, for example, 2025 was one of the toughest years many practitioners have faced due to extremely low stock levels, a strong seller’s market, and increased competition among property practitioners,” he says.
Compliance checks open doors
According to Jawitz and Tyson, another highlight for practitioners is South Africa slipping from the FATF grey list, alongside an S&P Global Ratings improvement. These developments are already creating a more predictable and efficient environment for property and financial transactions.
The most immediate gain from delisting is lower compliance costs and reduced uncertainty in cross-border transactions. With mandatory enhanced due diligence removed, routine trade finance and payments, including real estate transactions, will face fewer information requests, improving speed and reliability.
Meanwhile, S&P’s revision of South Africa’s long-term foreign currency rating to BB from BB-, and the local currency rating to BB+ from BB, validates sustained fiscal discipline and regulatory reform. The upgrade signals to investors that South Africa is a credible, lower-risk destination for long-term capital, which in turn supports smoother property transactions.
Looking forward: trends to watch in 2026
With optimism on the rise, property practitioners are moving through 2026 with renewed energy. The year is shaping up to be full of opportunities, and understanding the trends that are driving the market will be key to making the most of them: