The vast majority of Estate Agents expect South Africa's residential property market to improve in 2026, an expectation reinforced by many property observers who say they are "cautiously optimistic" that demand will stabilise as interest rates moderate and consumer confidence improves after a period of stagnation and affordability pressures.
First-time buyers and upgraders may accelerate activity, particularly in suburban and lifestyle nodes outside major metros. However, affordability challenges remain for middle-income households, keeping growth moderate rather than explosive.
Investment activity in rental and income-producing residential assets could rise, driven by institutional interest. Continued urbanisation and demand for secure, well-located housing will support selected segments, but overall growth will hinge on economic performance, finance accessibility, and employment trends.
Lightstone's annual survey of Estate Agents at the end of 2025 found 69% said they did not reach volume targets in 2025 and 62% said they fell short of value targets.
However, despite falling short in 2025, 87% of Estate Agents said they expected to reach sales volume targets in 2026, up marginally from 86% the year before, where just 26% reached their targets. Estate Agents are less bullish on reaching sales value targets at 82%, compared to 85% the year before.
Did Estate Agents reach 2025 sales targets by volume?
Did Estate Agents reach 2025 sales targets by value?
Estate Agents comment on the value of Lightstone in achieving their targets
While the findings suggest that nearly two thirds of agents performed worse than anticipated in 2025, the tough year hasn't dented expectations for 2026, with 71% of Estate Agents either "very optimistic" (27%) or "somewhat optimistic" (44%) about growth opportunities over the next twelve months (see graph below). A fifth (20%) are "neutral" or "uncertain" with just 9% either "somewhat" or "very pessimistic".
How confident are Estate Agents about growth opportunities in South Africa's property market over the next 12 months?
Just more than two thirds expect demand for property to rise in 2026, while 66% expect demand to rise in the rental market (see graphs below).
What Estate Agents estimate is going to happen in the property market in 2026 in terms of demand for ownership and rental
Security topped buyer needs, downscaling led the way for sellers
Estate Agents noted a shift in buyer preferences in 2025, with security becoming the primary attribute house buyers were looking for when compared with 2024 (30%:19%). All other attributes - including green features, buy-to-rent, size to work from home, and lifestyle and amenities - fell in importance in 2025. Of the four, lifestyle and amenities was next most important after security at 26%, down from 33% the year before, followed by enough space to accommodate a home office.
What Estate Agents say buyers are looking for?
Downscaling and relocation accounted for nearly 60% of homeowners selling up and moving on. A third of sellers listed downscaling as the primary reason they sold in 2025, with 19% saying lifestyle change was the driver while 14% said it was financial difficulty. Relocating to another province (14%) and relocating to another city or town (10%) made up 24%.
What Estate Agents say were the main reasons given by the sellers for selling properties this past year?
Lightstone's Property Report is a firm favourite
The majority of Estate Agents indicated that data accuracy is the most important factor in their decision-making, reinforcing Lightstone's commitment to delivering trusted, highly accurate insights.
Data accuracy and freshness (29%), ease of use and overall user experience (21%) and breadth of data coverage (14%) were the three factors which Estate Agents said would most influence their choice of a property data tool to recommend to a colleague. Price and value for money and speed and performance made the top five (9% each).
Nearly a third of Estate Agents said Lightstone's Property Report was the most effective tool for work, followed by the Suburb Report and the Sectional Ownership Report.
The Lightstone Property Report emerged as a firm favourite among Estate Agents, consistently cited as a report they cannot operate without. Together with the Suburb and Sectional Scheme Ownership Reports, these three tools account for 56% of reports identified as the most effective within Lightstone's Toolkit.
71% of Estate Agents identified BetterBond, Ooba and MultiNet as their preferred mortgage and bond origination partners. In addition, nearly two-thirds of agents cited access to seller leads as their top priority, followed by tools that enable more effective property marketing and improved access to buyer leads.
