South African property market set for recovery in 2026
Estate agents opportunistic of the residential property market for 2026
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The South African residential property market is poised for recovery in 2026, with a significant majority of estate agents expressing renewed optimism after a challenging 2025.
Reports from Lightstone, which conducts an annual survey of estate agents, indicate a growing confidence among agents who foresee a stabilisation of demand spurred by easing interest rates and a recovery in consumer sentiment.
Lightstone's survey at the end of 2025 found 69% said they did not reach volume targets in 2025 and 62% said they fell short of value targets.
Hayley Ivins-Downes, Lightstone’s managing executive of real estate said, “While 2025 was a tougher year than many estate agents anticipated, the confidence we’re seeing going into 2026 is notable. Expectations are being reset, but agents are clearly encouraged by signs of stabilising demand, easing interest rate pressure and improving sentiment across key residential segments.”
According to the survey, a reassuring 87% of estate agents anticipate achieving their sales volume targets in 2026, an increase from 86% the year prior, despite only 26% managing to meet those targets in 2025. However, confidence in achieving sales value targets is slightly tempered, with only 82% expecting to reach those goals, down from 85%.
The anticipated recovery is particularly notable among first-time buyers and homeowners looking to upgrade, who may seek opportunities in suburban and lifestyle nodes outside major metropolitan areas. However, challenges in affordability continue to plague middle-income households, limiting the market's growth potential to a moderate pace.
Investment activity in rental and income-producing residential assets could see an uptick, fuelled by institutional interest, among other indicators of continued urbanisation and demand for secure, well-located properties. The overall trajectory of growth will predominantly hinge on macroeconomic performance, accessibility of finance, and employment trends.
Notably, the preferences of buyers have evolved over the past year, with an increasing emphasis on security, which surpasses all other considerations. In 2025, 30% of buyers prioritised security over 19% who focused on green features and other attributes such as home office space, lifestyle and amenities, down from 33% the previous year.
Data from Lightstone shows that downscaling and relocation accounted for nearly 60% of homeowner transactions, with 33% listing downscaling as the primary reason for selling, reflecting a broader recalibration amongst South African homeowners.
Just more than two thirds expect demand for property to rise in 2026, while 66% expect demand to rise in the rental market.
“What’s clear from the data is that buyers are looking for secure homes. Security, location and long-term value are outweighing lifestyle extras, while downscaling and relocation continue to drive seller activity. These preferences reflect structural changes in how households are responding to affordability pressures as well as work and lifestyle patterns,” said Ivins-Downes.
Partnerships also play a crucial role in estate agents’ operational strategies, with BetterBond, Ooba, and MultiNet named as the preferred mortgage and bond origination partners by 71% of respondents. Additionally, two-thirds of agents indicated that obtaining seller leads is a top priority, highlighting the competitive landscape of the property market.