Budget 2026 prioritises infrastructure and reform for property sector growth

The municipal intervention announced by Finance Minister Enoch Godongwana in his Budget 2026 will addresses the single biggest driver of South Africa’s current property migration patterns. In a pivotal moment for South Africa’s property sector, Finance Minister Enoch Godongwana’sBudget Speechon Wednesday underscored a decisive shift towards accelerating infrastructure investment and implementing structural reforms, all aimed at revitalising local government systems through Operation Vulindlela. The minister’s message resonated with stakeholders, highlighting the direct implications for operating costs, asset performance, and long-term investment decisions within the sector.

“This is aimed at strengthening financial sustainability, accountability and transparency. Spatial and housing reforms focus on restructuring our cities to ensure that people have access to affordable housing located close to centres of economic activity. “This is a systematic effort to remove the structural blockages that have held back growth for many years,” Godongwana said.

According to Justin Davidson, a portfolio manager at Anchor, the 2026 Budget reinforces the operating environment. This strengthening is achieved by enhancing fiscal discipline, decreasing policy uncertainty, and signalling a continuation of reform efforts. He sayslower borrowing costs, a more stable inflation outlook and growing public infrastructure investment will help support capital planning and valuations over time.

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“Importantly for property owners and developers, the renewed focus on municipal reform, energy security and logistics performance addresses some of the constraints facing the sector. While the environment remains challenging, this signalling helps to underpin expectations and support selective investment and development activity.” One of the headlines for the property sector was a radical intervention in local government, says Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty. She says Godongwana announced a major reform for metro trading services, allocating R27.7 billion over the medium term to a performance-linked grant for electricity, water, and sanitation.

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