Cape Town leaves Joburg in the dust

South Africa’s property market is set for steady, value-driven growth in 2026, with Cape Town pulling even further ahead of Johannesburg and other metros.

Chas Everitt International CEO Berry Everitt explained that as 2026 unfolds, a quiet but growing sense of realism is emerging about the South African residential property market.

It is becoming very clear that the next 12 months are not going to be defined by any booms or busts, but rather by the steady separation of areas and property types that offer real value and security from those that do not.

According to Everitt, the fundamentals of confidence, functional infrastructure, and good governance will increasingly determine where investment flows – and where it doesn’t.

“In line with that, we expect that Cape Town and the Western Cape will continue to lead the country in house price growth for now.”

“This region’s consistent performance over the past few years has not just been about lifestyle appeal; it has also been about functioning infrastructure, fiscal discipline and the delivery of basic services.”

Everitt noted that families and investors have been moving to the region, confident that the lights will stay on, that water will run from their taps, that refuse will be collected, and that roads will be repaired.

“In the process, this basic reliability has become the new premium, and the result is a local market driven by scarcity and high demand, with supply pressure continuing to push prices higher.”

In contrast, he said, Johannesburg, Pretoria and Durban are still struggling under the weight of decaying infrastructure and governance failures, despite recent efforts to address them.

“Without electricity, water, transport and waste systems that work, even the most desirable suburbs and cities can lose value.

Growth runway for Johannesburg

Despite the infrastructure challenges in Johannesburg, Pretoria and Durban, Everitt said these cities are all vital economic centres whose well-being is essential to the health of the national real estate market.

Johannesburg alone contributes around 16% of South Africa’s GDP and remains a major magnet for business and entrepreneurship.

Recently, a growing number of international corporate investors have also begun to view it as the most viable and stable gateway to Africa’s burgeoning markets.

This is especially the case now that the African Continental Free Trade Agreement is starting to bear fruit, Everitt noted.

“Consequently, we are pleased with the progress that has been made by the Presidential Working Group in conjunction with local government and the business sector on the much-needed revival and restoration of the city.”

Everitt added that they hope to see these efforts continue. Meanwhile, market confidence is growing as the broader economic backdrop improves.

“Growth has inched up, South Africa has been removed from both the Financial Action Task Force Grey List and the EU list of high-risk third country jurisdictions, the rand is stronger than it has been in years, and inflation remains under control.”

“The Reserve Bank’s rate cuts of the past year – with more expected to come – have also provided significant relief to both existing homeowners and new buyers.”

Everitt said that there is also no shortage of demand at this stage. However, affordability remains constrained by job creation.

“So for the market to thrive in the longer term, we must keep our focus on further economic expansion, employment, good governance and investor-friendly policies that keep building consumer and business confidence into the future.”

Strong segments in 2026

Against South Africa’s current market backdrop, Everitt said that several strong segments are expected to stand out in 2026.

“For example, secure complexes and lifestyle estates will remain highly sought-after, driven by the twin desires for safety and wellness.”

“The concept of luxury has evolved beyond aesthetics or size; it now encompasses peace of mind, health and resilience.”

As a result, Everitt said buyers want communities that function independently, with security, solar energy and water solutions built in.

“These same factors are also influencing the growing popularity of smaller, greener homes, as sustainability shifts from being a lifestyle choice to a financial calculation. Indeed, we believe green certification is poised to play a major role in the next property cycle.”

He added that a new collaboration between Standard Bank, regulators and Chas Everitt aims to measure and certify the energy performance of homes, linking green features directly to their financial value.

Buyer behaviour is also continuing to evolve, Everitt said. The old worry about commuting distances has been overtaken by new, more pressing concerns.

Now, buyers are aiming to purchase properties in areas that are safe, have reliable services, and will continue to function during outages. “Security, quality of life and resilience are the new non-negotiables.”

“This shift is also still driving movement away from major metros toward smaller ‘lifestyle towns’ on the Garden Route, in the Boland and along KwaZulu-Natal’s North Coast.”

Everitt explained that this is especially the case among those who are not geographically bound to a specific workplace.

“These towns, with their stable infrastructure and strong sense of community, are fast becoming permanent relocation destinations rather than holiday spots.”

Finally, Everitt said that technology is another major force reshaping the industry. Restate has become a race of responsiveness, where “speed to lead” determines success.

For this reason, companies like Chas Everitt have started embracing AI-led generation, instant WhatsApp engagement, digital property reports, agent videography and virtual tours.

“Our brand is a leader in this space, not only at a corporate level but right down to the local agent. But we are also acutely aware that these tools do not and cannot replace the human element of property transactions.”

“Their purpose is to enable our agents to be faster, more visible and more relevant, so that they can build closer relationships with clients that are based on trust, knowledge and personal guidance.”

Against this backdrop, Everitt noted that the overarching challenge for the real estate sector in 2026 will be helping to restore faith in public institutions.

“Where government falls short, trusted property professionals will need to fill the gaps, offering stability, expertise and integrity. The South African housing market is resilient by nature, and its people are resourceful.”

“But the direction of the next 12 months is clear: growth will follow confidence, confidence will follow good governance, and where infrastructure and sustainability meet, the market will flourish.”