Consumer Confidence in SA Property Market Reaches All-Time High in 2026

Absa’s latest Homeowners Sentiment Index (HSI) for the first quarter of 2026 shows that overall consumer confidence in South Africa’s property market increased by 1 percentage point to 88%, the highest level recorded since the Index was launched in 2015.

The increase continues the upward trend seen since 2024, pointing to sustained optimism in the country’s residential property market.

The overall score was supported by stronger sentiment across all categories within the HSI, with buying, selling, investing, and renovating all recording gains from the final quarter of 2025. Selling sentiment saw the largest increase at 4 percentage points, followed by buying and renovating sentiment at 3 percentage points each, while investment sentiment rose by 2 percentage points.

All subindices are now at their highest levels to date.

“The main driver of positive sentiment is that many South Africans believe property is a secure asset for investment,” said Tshepo Mashashane, Executive: Strategy & Strategic Communication at Absa Home Loans. “Homeownership is also an aspirational purchase for many South Africans entering the market for the first time, reflected in the high number of home loan applications from the first-time homebuyer segment. Investors are also expected to play a key role in the market, driven by ongoing demand for rental properties.”

The Index also showed stronger confidence among younger South Africans participating in the property market. Respondents between the ages of 25 and 34 recorded the highest confidence levels at 90%, with this segment accounting for 27% of buyers over the past 12 months. Those aged between 35 and 44, and 45 and 54, both recorded confidence levels of 88%, while respondents over the age of 55 were the least confident at 84%.

Confidence around renovations has also reached a record high of 82%, driven by the belief that renovations increase property value and can deliver stronger returns when selling. High levels of investment confidence were also observed among both existing and aspiring investors, underpinned by strong belief in property as a long-term investment choice.

“The developments in the Middle East had not affected homeowner sentiment at the time the survey was conducted, but only time will tell whether there is a delayed impact as the macroeconomic environment changes,” said Mashashane. “Higher fuel prices and the effect this could have on inflation and the interest rate outlook may still influence sentiment in the months ahead.”

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. Launched in 2015, the Index’s overall consumer confidence insight is supported by sub-indices that measure consumer confidence around buying, selling, and investing in property.

To view the full report, visit our Homeowner Sentiment Index site .

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