Restoring confidence in the property and construction industries has wider economic advantages because they contribute significantly to employment and fixed investment in South Africa.
Image: Phando Jikelo/ANA
To strengthen confidence among developers, investors, homeowners and financial institutions, Finance Minister Enoch Godongwana must emphasise predictability and fiscal discipline.
The property sector is highly sensitive to interest rates and broader macroeconomic stability, both of which are closely linked to fiscal credibility, says Raeesa Kader, the academic programme leader at the School of Accounting, Finance and Tax at the Management College of Southern Africa (Mancosa)
“Signalling stronger support for affordable housing and improved municipal efficiency would further demonstrate that government recognises the sector’s role in employment creation and economic growth,” Kader says.
Godongwana will deliver the 2026 Budget Speech on Wednesday, February 25.
As South Africa prepares for the Budget Speech, the real estate sector will, above all, be looking for stability and regulatory efficiency, says Kader.
The academic leader adds that a practical wish-list would include targeted support for first-time homebuyers to stimulate residential demand, alongside faster and more streamlined municipal approval processes to reduce costly development delays.
“Restoring confidence in the property and construction industries has wider economic advantages because they contribute significantly to employment and fixed investment in South Africa. Ultimately, the focus should not be on short-term incentives alone, but on creating a stable environment that supports long-term investment and sustainable growth.”
According to Kader, South Africans are cautiously expectant after last year’s budget was marked by intense debate and fiscal pressure.
“This year, the expectation is for a more measured and deliberate approach. In a municipal election year, the Minister has both the opportunity and the responsibility to demonstrate that public finances are being managed prudently and with purpose.”
The property sector stands to gain most from policies that drive economic growth, restore consumer confidence, and improve affordability, says Adrian Goslett, chairperson of Real Estate Business Owners of South Africa (REBOSA) and CEO and regional director of REMAX Southern Africa.
“We would welcome a Budget that supports first-time buyers, lowers the tax burden on individuals, and reduces red tape in property transactions,” says Goslett. “A stable interest rate environment will also be critical to unlocking increased market activity and encouraging sustained investment in housing.”
Goslett adds that placing the property sector and its stakeholders on a stronger footing will require a clear indication from the Minister that the government remains committed to economic growth, fiscal discipline, and infrastructure delivery.
The property sector’s key wish-list centres on certainty, consistency and continued progress of growth enabling reforms, says Justin Davidson, the portfolio manager at Anchor.
He says this includes a firm commitment to fiscal discipline, improved municipal infrastructure delivery, and policy stability that supports long-term capital investment.
“Relief from rising municipal costs, improved local governance, and more rapid progress on energy and logistics reforms would materially improve the operating environment for property owners and tenants.”
The most important signal the minister can send is a credible and sustained commitment towards South Africa’s reform trajectory, says Davidson.
He says a reinforcement of commitments to structural reform, infrastructure investment and prudent debt management would help anchor investor confidence and support capital allocation decisions.
“For the property sector, recognising its role as a long-term capital allocator, income generator and contributor to employment and urban regeneration is important.
"Clear messaging on municipal reform, energy security and tax stability would place stakeholders in a stronger position to invest, develop and support housing delivery across the value chain,” the portfolio manager says.
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