Rising confidence in property development sparks increased capital investment

Today it is about efficiency, adaptability and specialisation. Sentiment has improved in South Africa’sproperty development sectorcompared to a year ago, and capital is more active, says Landseer Collen, the director and architect at BPAS Architects. “There is a sense that institutional capital, which largely sat on the sidelines, is carefully beginning to re-engage.

But investors are more selective, too. They are looking for quality assets that can withstand economic, infrastructure and governance pressures.” The multidisciplinary architecture and interior design firm says the property sector is entering 2026 in a steadier position than it has been in some time, but much more realistically. It says over the past five years, the industry has been operating in survival mode, dealing with the aftershocks of the Covid19 pandemic, rising interest rates, load shedding and grey-listing.

That period forced a lot of caution and sometimes paralysis, it says. Looking back on 2025, it is clear that it was a year of strong momentum, said Rabie Property Developers. It said the momentum was driven by real demand and continued confidence in their developments.

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“During the year, we recorded over 700 new development sales with a total value of R2 billion, reflecting solid growth from previous years. When combined with a further R400 million in resales, the numbers paint a clear picture of a market that remains active, resilient, and confident in its continued growth.” The sector has matured significantly in the last decade, says Collen. Logistics, data infrastructure, mixed-use developments and green-certified buildings are becoming the standard.” According to BPAS Architects, the biggest challenge remains the deterioration of municipal infrastructure.

“Water reliability, waste management and road maintenance are central to asset value and operational viability. In many cases, developers step in where municipalities fall short, which directly affects costs and feasibility,” Collen says. With that said, he says there are real positives.

“The strong performance ofSouth African REITsin 2025 has restored confidence and provided a much-needed tailwind for the sector. We are also seeing renewed momentum in specific niches like high-spec logistics, data centres and specialised mixed-use developments.” He adds that one of the most promising opportunities lies in the refurbishment and repositioning of existing assets.

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