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Real Estate in 2026: A Year of Steady Confidence and Evolving Demand

Real Estate in 2026: A Year of Steady Confidence and Evolving Demand

Author: By Andreas Wassenaar
Date: 2026-01-29

As the first quarter 2026 gains momentum, our North Coast property landscape is settling into a rhythm shaped by wider economic shifts, evolving buyer preferences, and enduring lifestyle trends.

Nationally, FNB's Property Barometer reports provide excellent information on average house price growth. The latest recorded figures ending Oct 2025 show house prices growing at 4,9% slightly down from the 5.1% and 5% recorded in the prior two months, but still significantly above the figures recorded between April 2022 through June 2025. This rebound in home prices reflects improvements in sentiment and demand. The RMB/BER business confidence index rose to 44 in Q4 2025 from a one year low of 39 in the previous quarter. Consumer confidence edged up to -9 in Q4 2025 from -13 in the previous period.

The question if house price growth has peaked and will flatten remains to be answered. The market activity so far for 2026 indicates a surge in demand which will hopefully fuel further growth. With CPI inflation recorded at 3,6% in December 2025 the chances of further interest rate reductions can be anticipated.

In this context of renewed optimism, a number ofemerging trendsare becoming clearer:

1. A Focus on Lifestyle and Coastal Living

Coastal regions - including the KwaZulu-Natal North Coast - are standing out aspreferred lifestyle destinations. Across South Africa, buyers are prioritising environments that offersecurity, natural beauty, and quality of life, whether for permanent residence or long-term investment. Coastal estates, secure developments, and lifestyle communities continue to draw interest, particularly from semigrants and lifestyle buyers.

2. Rental Demand Staying Robust

Another significant development for 2026 is the increasingly important role ofrental propertyin the residential market. With affordability still a challenge for many homebuyers - particularly first-timers - renting remains a long-term choice for a growing number of South Africans. Analysts note rising rental escalations nationally, especially in coastal and secure estate markets where supply is limited and demand continues to outpace stock.

This has created opportunities not just for tenants seeking flexibility, but for investors looking forconsistent, inflation-beating yields.

3. Estates and Security as Key Drivers

Across South Africa, trends show thatsectional title living and secure estatesare outperforming some traditional segments. Buyers are drawn to environments that offer lock-up-and-go convenience, controlled access, and predictable maintenance - all features that resonate with the modern lifestyle and growing investor confidence.

Sectional title properties, in particular, are attractive to first-time buyers and buy-to-let investors because they are often more affordable and benefit from economies of scale in services and security.

4. Sustainability and Functional Living

In 2026, buyers are increasingly prioritising homes that aren't just beautiful, butfunctional and resilient..

5. Regional Diversity and Emerging Growth Areas

While national trends provide the big picture, regional variation matters. Our North Coast is showingdistinct resilience, driven by lifestyle appeal, comparative affordability relative to other coastal regions. Key development nodes to watch are Zimbali Lakes, Zululami and Seaton.