South Africa investment report 2025 /2026

The commercial property market in 2025 experienced a year of significant transformation and geographic realignment. After the record-breaking performance of 2024, the market consolidated at more sustainable levels while demonstrating remarkable regional shifts that will reshape South African commercial real estate for years to come.

For the first time in the decade that JLL has tracked this data, the Western Cape overtook Gauteng as the dominant investment destination, capturing nearly half of all commercial property investment volume. This historic shift reflects the ongoing semigration trends, improved infrastructure, and investor confidence in the province's economic fundamentals.

The year was characterised by continued interest rate normalization, political stability following the successful Government of National Unity, and the sustained absence of loadshedding. These positive fundamentals supported investor confidence, though total investment volumes moderated from 2024's exceptional levels to a more normalized R20.15 billion.

In 2026, the market is expected to show continued strength, particularly in well-located industrial properties, dominant retail centres, and prime office developments in strategic nodes. The Western Cape's emergence as the primary investment destination is likely to continue, supported by ongoing demographic shifts and infrastructure investments.