2025 ended on a positive note and, despite recent super power spats over oil and other resources on other continents, 2026 promises to be a positive one back home with the residential property market set to continue to benefit from interest rate cuts, according to Tyson Properties’ founder and chief executive, Chris Tyson.
In the throes of rolling out a brand renewal and tech upgrade to co-incide with this property revival, Tyson shares six reasons why 2026 will be positive for all on the property ladder:
1. Confidence sells: Investor confidence is on the up. Like its iconic rugby team, South Africa is resilient and there is already rising demand for housing on the back of improved incomes. Better governance and fiscal policy, together with the fact that South Africa has slipped from the FATF grey list and seen an S&P rating improvement, will raise the appetite for investment.
2. Rates are attracting interest: 2026 ushers in a whole new chapter in monetary policy. In the Medium-Term Budget Policy Statement, Finance Minister Enoch Godongwana and the Reserve Bank set a 3% inflation target that not only promises lower household food and energy costs but also makes two further interest rate cuts likely - adding up to 50 basis points in further relief for 2026.
3. A new approach to service delivery: The upcoming local government elections could spark improvement in service delivery if only to attract votes. The performance of local municipalities influences property values with those benefitting from good services commanding a premium. Hence, it comes as no surprise that the Western Cape will continue to lead the property market recovery for 2026 with Gauteng and KwaZulu-Natal still playing catch up for most of the year.
4. The year when people return to work: Although remote work is a reality, particularly in the tech space, the workforce is heading back to the office. This will not only impact positively in the commercial property market but also persuade employees to move closer to their workspaces. Convenience and safety will be key growth drivers and demand for sectional title estates will grow. Already equity values are exceeding those of freestanding homes.
5. A growing appetite for lending: Fuelled by lower interest rates and expectations of further cuts, banks are on the lookout for loan candidates. By year end, it was evident that home loan applications are rising at the fastest pace since 2022. With expectations that House Price Inflation will stabilize during 2026, greater affordability should bring more borrowers to the table. With income growth potentially outpacing inflation in 2026, these buyers will have greater long-term purchasing power.
6. The return of first-time buyers: Greater affordability and further interest rate cuts, together with a more positive overall economic outlook and lower inflation should encourage first time buyers to enter the market. Although the rental market is expected to remain strong in 2026, those sitting on the picket fence are expected to make pro-investment choices this year.
Tyson admits that, while some uncertainties remain - global trade wars and political altercations, water shortages and potential currency fluctuations – there are far more positives than negatives in 2026.
“It would be safe to say that, for the property sector, we are starting the year on a very positive note and expect to not only see a more vibrant market but also one where developers look to return to the market in key hubs like the Western Cape and the KZN North Coast,” he concludes.
