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Media release

Media release

SA Property Investment Confidence Remains Near Record Highs, Absa HSI Finds

24 July 2025

Investment sentiment in South Africa’s residential property market remained elevated in the second quarter of 2025, with Absa’s latest Homeowners Sentiment Index (HSI) recording an 84% positive response.

This marks the strongest consecutive three-quarter performance since the Index was launched in 2015, underscoring sustained consumer confidence in property as a long-term investment asset.

“Property investment is largely driven by the common goal of owning a stable, high-return asset, along with the growing awareness of the benefits of earning additional or passive income,” said Nondumiso Ncapai, Absa Home Loans Managing Executive. “With many South Africans optimistic about economic recovery, there is increasing recognition of property’s potential to generate value now and build wealth for future generations.”

The positive outlook for property as an investment is underpinned by several key perceptions among South African consumers. Over half (53%) believe that property consistently gains value over time, while 52% see it as offering good returns. Nearly half (48%) view it as a reliable source of passive income, and 47% cite strong demand for rental properties as a motivating factor. Looking ahead, 42% anticipate continued growth in demand, reinforcing confidence in property’s long-term investment potential.

At the same time, investors remain cautious about several risks. Chief among these is concern over the broader economic climate, with 51% citing poor economic performance as a key deterrent. Other concerns include the weak rand (33%), high property prices (36%), and affordability challenges among tenants – particularly in the context of job insecurity and unemployment – with 29% worried that tenants may be unable to pay rent and 27% highlighting broader concerns about labour market stability.

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. In the second quarter of 2025, overall homeowner sentiment rose by one percentage point to 86%, suggesting that persistent economic concerns have not significantly dampened consumer confidence. The uplift was supported by easing inflation and expectations of stable or gradually declining interest rates.

Ongoing semigration shifts were also noted in the HSI report. The Western Cape and Eastern Cape continue to see a positive net migration over the most recent quarter, similar to levels observed in the previous quarter. Gauteng remains the biggest net loser of property owners, with a 24% increase in net outward migration.

Looking ahead, a further interest rate cut anticipated in July, according to the Absa house view, should help sustain the stability in consumer sentiment this market has enjoyed in the last year, said Ncapai.

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

24 July 2025

Investment sentiment in South Africa’s residential property market remained elevated in the second quarter of 2025, with Absa’s latest Homeowners Sentiment Index (HSI) recording an 84% positive response.

This marks the strongest consecutive three-quarter performance since the Index was launched in 2015, underscoring sustained consumer confidence in property as a long-term investment asset.

“Property investment is largely driven by the common goal of owning a stable, high-return asset, along with the growing awareness of the benefits of earning additional or passive income,” said Nondumiso Ncapai, Absa Home Loans Managing Executive. “With many South Africans optimistic about economic recovery, there is increasing recognition of property’s potential to generate value now and build wealth for future generations.”

The positive outlook for property as an investment is underpinned by several key perceptions among South African consumers. Over half (53%) believe that property consistently gains value over time, while 52% see it as offering good returns. Nearly half (48%) view it as a reliable source of passive income, and 47% cite strong demand for rental properties as a motivating factor. Looking ahead, 42% anticipate continued growth in demand, reinforcing confidence in property’s long-term investment potential.

At the same time, investors remain cautious about several risks. Chief among these is concern over the broader economic climate, with 51% citing poor economic performance as a key deterrent. Other concerns include the weak rand (33%), high property prices (36%), and affordability challenges among tenants – particularly in the context of job insecurity and unemployment – with 29% worried that tenants may be unable to pay rent and 27% highlighting broader concerns about labour market stability.

The Absa HSI is a leading indicator of the overall state of consumer confidence in South Africa’s property market. In the second quarter of 2025, overall homeowner sentiment rose by one percentage point to 86%, suggesting that persistent economic concerns have not significantly dampened consumer confidence. The uplift was supported by easing inflation and expectations of stable or gradually declining interest rates.

Ongoing semigration shifts were also noted in the HSI report. The Western Cape and Eastern Cape continue to see a positive net migration over the most recent quarter, similar to levels observed in the previous quarter. Gauteng remains the biggest net loser of property owners, with a 24% increase in net outward migration.

Looking ahead, a further interest rate cut anticipated in July, according to the Absa house view, should help sustain the stability in consumer sentiment this market has enjoyed in the last year, said Ncapai.

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