Property

South Africa’s property market set to soar

Kirsten Minnaar • 17 January 2026

The South African property market is poised for strong growth in 2026, driven by easing interest rates, renewed investor confidence, and robust demand across industrial, retail, office and auction-based property segments.

Drawing on robust performance trends from 2025 trading data, Broll Auctions and Sales’ 2026 market outlook is that conditions for growth are in place as interest rates continue to ease and funding conditions become more lenient.

The commercial real estate auction house pointed out that renewed confidence, rising transaction values and a shift in investor behaviour are predicted to influence the South African property auction landscape in 2026.

Positively, Broll Auctions and Sales Director Jayson-lee Collins explained that investor sentiment has become bullish.

“We are seeing buyers willing to deploy more capital now, believing that the market has bottomed out and that values will strengthen over the next five years,” Collins said.

Broll Auctions and Sales anticipate that the industrial sector will lead the market once again, driven by sustained demand for logistics space and modern warehousing.

In 2025, the most sought-after assets were neighbourhood retail centres anchored by strong national tenants. These properties are expected to continue outperforming large regional and super malls in 2026.

Industrial property, particularly logistics-focused facilities, also delivered standout performance, underpinned by the continued acceleration of e-commerce and demand for efficient distribution networks.

“Our most active price band in 2025 was between R20 million and R50 million,” Collins said. “However, we saw a strong demand and uptick for larger asset groups north of R100 million, with several deals surpassing these levels.”

The office market showed clear signs of stabilisation in 2025, with vacancies steadily being absorbed and owner-occupier activity increasing.

Collins said they expect this recovery to continue, with the office market now nearing pre-pandemic levels.

“Vacant land has also re-entered the investment conversation, supported by longer-term redevelopment plays and improving confidence in urban regeneration,” he said.

More growth ahead

Online auctions continued to gain traction as a value-enhancing channel, but in-room bidding remains the focal point for serious investors.

“We’ve seen strong cross-pollination between online and live bidders, with digital participants increasingly choosing to experience auctions in person,” Collins said.

“Our expanded marketing capabilities are delivering more leads, more offers and a higher conversion rate of successful deals, which we expect to carry through into 2026.”

Innovation remained a key driver of growth in 2025, with timed auctions proving highly successful and crypto-enabled transactions demonstrating the benefits of flexibility in accommodating alternative payment mechanisms.

“These and other innovations are expected to continue our year-on-year growth in the number of successful sales,” Collins said.

On the demand side, buyer activity has become increasingly active across the board. The Western Cape remained the country’s top-performing market in 2025, with KwaZulu-Natal showing a strong uptick in activity.

Johannesburg has seen growing interest in assets with upside potential as investors position for a medium-term recovery.

“We are seeing experienced investors sitting on cash, targeting opportunistic buys across all asset classes,” Collins said.

“Investors are looking for the opportunity to capitalise in a recovering market, often sacrificing higher initial yields with the prospect of higher long-term growth.”

He added that sellers continue to choose auction as a sales method for its speed, transparency and ability to secure non-suspensive, cash-based transactions.

“We are optimistic about the year ahead. Decreasing interest rates, improved funding conditions and a renewed appetite for risk are combining to create a constructive environment,” he said.

“We expect 2026 to deliver even bigger deals and stronger participation across all major asset classes.”

Listed below are two industrial properties sold by Broll in 2025 – Mayfair Convent School, a former private primary school in Johannesburg, and an industrial park located at Elsies River.