The South African property market in 2026 is being shaped by more than just price and location. Instead, buyers are prioritising three key factors: security, resilience, and lifestyle. Easing economic pressures and sustained lower interest rates in 2025 have seen a wave of strategic buyers from aspirant first-time buyers to downscaling retirees enter the market.
“They are intentional about their homebuying journey,” says Bradd Bendall, BetterBond’s Head of National Sales. “Buyers in 2026 want homes that offer peace of mind, sustainable and cost-effective living solutions, and a quality lifestyle.” Features once considered luxury add-ons have become standard in most homes. Luxury living has transitioned into design-led living, where every aspect contributes to creating a space that is functional and restorative.
Increased appetite for smaller, flexible, and affordable housing
Many buyers want smaller homes – often sectional title properties and mixed-use developments – that are affordable and well located. These property options offer security, lower maintenance, and lock-and-go convenience. Affordability remains a critical concern for many homebuyers.
As interest rates ease, first-time buyers and downsizers will dominate the market, fuelling a demand for secure, efficient sectional title units and townhouses over expensive, high-maintenance freehold homes. Lock-up-and-go apartments appeal to young, mobile professionals and retirees alike. These buyers place a premium on security, communal amenities such as gyms and swimming pools, and lower monthly maintenance levies.
The rise of sectional title living
Sectional title is SA’s fastest-growing sector, especially in major metros such as Cape Town and Gauteng, where urbanisation and high-density living are prevalent. According to Property24, sectional title sales account for 30 to 40% of all property transactions in these urban centres. At an average selling price of R1.2 million, sectional title properties are more accessible for a range of buyers. As these properties often fall within the R1.21 million transfer duty threshold, they are particularly popular with first-time buyers and buy-to-let investors.
According to the FNB House Price Index, July marked a key milestone: for the first time post-pandemic, equity values generated by sectional title properties marginally outpaced those of freestanding homes. This trend is likely to continue in 2026.
Mixed-use urban developments
Developments that combine residential, retail, and commercial spaces (like the Westown development in Durban) are in high demand, particularly for young professionals seeking integrated work-life environments, says Bendall. “Properties within these ‘mini-cities’ will command a premium due to on-site amenities and improved security.”
Energy resilience premium
The days of load-shedding tolerance are over. In 2026, full energy backup (inverters, batteries, and solar panels) will transition from a luxury feature to a non-negotiable standard for a desirable home. Properties that offer true off-grid readiness and reliable power solutions like solar power, inverters, and reliable backup water solutions are commanding a significant price premium.
“Estate agents report that these properties sell faster and at higher prices up to 5 to 10% more because they offer sustainable and cost-effective solutions,” explains Bendall. Investing in alternative energy solutions is increasingly important for protecting and increasing property value.
Fibre connectivity as a standard
Ultra-high-speed fibre connectivity is an essential infrastructure requirement for renters and buyers. Rand Merchant Bank has reported that fibre was initially a “luxury installation” in sought-after suburbs such as Parkhurst, but is now commonplace in many suburbs and high-density areas around the country.
The international benchmark is that properties with high-speed fibre can sell or rent for 5 to 8% above market value. “We are seeing similar price premiums in South Africa, especially post-pandemic, as more people have opted for hybrid or work-from-home arrangements.”
All-inclusive mega-estates
Lifestyle estates are evolving into true urban villages or mini-cities that offer a 20-minute life radius. These new developments are integrating an array of lifestyle amenities to appeal to families and young professionals who demand safety and convenience. The developments now commonly feature co-working spaces, private schools, doggy daycares, padel courts, and on-site medical facilities. For residents within these mega-estates, such as Steyn City in Johannesburg’s northern suburbs, it means the death of the commute and the birth of the fully integrated, hyper-convenient neighbourhood.
Water-wise homes
Following South Africa’s energy crisis, water security is rapidly becoming the next critical point of value. Consumers are actively seeking homes with infrastructure that mitigates municipal service risk. Features like greywater recycling systems, rainwater harvesting tanks, and smart boreholes are highly prized.
In 2026, the narrative will shift from simply being eco-friendly to being survival-savvy. Reducing reliance on municipal services is good for the environment and your pocket, notes Bendall. Homes with these features sell faster and often at closer to the asking price because they prove to a potential buyer that the home is sustainable and is likely to incur lower utility costs.
Wellness and biophilic design
A growing trend in home design, often inspired by biophilic principles, incorporates elements proven to boost mental and physical well-being. This shift is a permanent outcome of the work-from-home era, necessitating homes to function as both a workspace and a sanctuary, explains Bendall. Expect to see design elements such as enhanced natural light, dedicated Zoom-ready “pods” or “hubs”, seamless indoor-outdoor living flow, and a greater emphasis on natural materials like wood and stone, along with features like vertical gardens on balconies or patios.
Co-living investor models
Due to high property costs, new investment models are emerging. The trend of siblings, friends, or young colleagues purchasing property together (joint bond applications) or renting large properties to share costs is becoming more prevalent. Particularly in sought-after areas where apartments or homes are in short supply, co-living provides a cost-effective alternative, says Bendall. It’s also an ideal solution for mobile professionals and digital travelers, perfect for stays ranging from a few months to a year.
They can rent a room on a property, sharing communal spaces with other like-minded tenants. “Co-living is a trend that challenges traditional ownership norms. It provides access to better properties in highly desirable suburbs, allowing young South Africans to afford the security and lifestyle amenities they desire collectively,” says Bendall.
An optimistic outlook
Overall, indicators point to 2026 being a year of continued cautious optimism in the property market, concludes Bendall. FNB’s latest Property Barometer reports that 67% of agents anticipate increased market activity, up from 34% recorded in the previous quarter. Positive sentiment is robust, particularly in the affordable and luxury segments. “The trends defining 2026 point to a market increasingly driven by functionality, sustainability, and value retention, concludes Bendall.
