Impact of elections on South Africa’s property development sector in 2026

Municipal service delivery and good governance are essential for sustained development. Insufficient maintenance, delays in approvals and capacity constraints, are costly and deter investors. An election year brings both uncertainty and opportunity for the property development sector.

While there can be short-term delays as municipalities navigate political transitions, election cycles also place the focus firmly on service delivery and infrastructure, says Barto van der Merwe, managing director of Renishaw Coastal Precinct. He says theproperty sectorcontinues to face challenges related to municipal service delivery and regulatory delays. While load-shedding has eased, the impact created a need for developers to invest in alternative energy and water, which is good news in the long run, he adds.

“This is why developers are increasingly investing in self-sufficient models that provide reliable services for residents and businesses.” The MD says fordevelopmentssuch as Renishaw Coastal Precinct, they prioritise self-sufficiency in development design. “ These risks are largely mitigated, and investors benefit from a stable, long-term investment regardless of political cycles.” The property management company states that South Africa’s property market began 2026 on a stronger footing, thanks to improved macroeconomic indicators and renewed investor confidence. It states that, compared to the past year, the sector is experiencing a more stable interest rate environment following an extended period of rate cuts, improved electricity supply reliability, easing inflation, and a stronger rand.

[paywall]

“Compared to a decade ago, South Africa’s property sector is more resilient, with developers focusing on sustainability, mixed-use precincts, and self-sufficient models,” says Renishaw Coastal Precinct. Looking back three to five years, the contrast is even more pronounced, as the industry emerged from pandemic-related disruption, rising borrowing costs, and a lack of consumer confidence, it says. “Regions such as the KZN South Coast, and developments like Renishaw Coastal Precinct, are benefitting from this shift as buyers focus on lifestyle appeal and investments with long-term growth potential.”

[/paywall]