Based on economic insights by Dr Roelof Botha (January 2026).
Despite cautious headlines, South Africa’s underlying economic data is pointing to a more positive and stable outlook — and the property market is one of the sectors benefiting most from this shift.
According to economist Dr Roelof Botha, several powerful economic forces are aligning to support the next phase of the property cycle. These trends are already influencing regional markets like Port Elizabeth (Gqeberha), where affordability, lifestyle appeal, and renewed buyer confidence are driving increased activity.
This article explains how these economic shifts impact the Port Elizabeth property market in 2026, and what homeowners, buyers, and sellers should expect.
Why the Economy Matters to Property in Port Elizabeth
Property markets are closely linked to broader economic conditions. Factors such as interest rates, inflation, currency strength, and private sector investment directly influence:
- Buyer affordability
- Bond approvals
- Property demand
- Price stability
As Dr Botha’s data shows, South Africa is entering 2026 with improving economic fundamentals, which bodes well for the Port Elizabeth housing market.
1. A Stronger Rand and Its Impact on Port Elizabeth Property
South Africa’s currency strengthened by nearly 14 percent against the US dollar by the end of 2025, with positive momentum continuing into early 2026.
Why a Stronger Rand Supports Property
A stronger rand helps to:
- Reduce the cost of imported goods, including fuel and building materials
- Keep inflation under control
- Create room for interest rate reductions
For the Port Elizabeth property market, this translates into:
- Improved home loan affordability
- Greater buyer confidence
- More stable pricing conditions
Lower interest rates remain one of the strongest drivers of residential property demand, particularly in value-driven coastal cities like Gqeberha.
Why the Rand Is Holding Firm
Improved Balance of Payments
One of the main supports for the rand is South Africa’s healthier balance of payments. Over the past two years:
- The trade account has remained in surplus
- The financial account has also recorded a surplus
This means more capital is flowing into South Africa than out, strengthening currency stability and reducing economic volatility.
A Softer US Dollar
The rand has also benefited from a weaker US dollar, driven by:
- Global policy uncertainty
- Reduced yield advantages on US bonds
- Expectations of further US interest rate cuts during 2026
This environment continues to support emerging market currencies like the rand.
Inflation Remains Contained
Inflation trends remain favourable:
- Producer Price Inflation remains below 3 percent
- Consumer Price Inflation remains within the Reserve Bank’s target range
These conditions significantly increase the likelihood of additional interest rate cuts, with prime potentially approaching 10 percent in early 2026.
For Port Elizabeth homeowners and buyers, this creates a more predictable and supportive lending environment.
2. Trade Surpluses Are Supporting Economic Stability
Concerns around global trade disruptions have not materialised as feared. Instead, South Africa’s export performance has remained strong.
Key highlights include:
- Exports reaching record levels during 2025
- A substantial trade surplus helping stabilise the economy
Why This Matters for Port Elizabeth
Strong exports:
- Support employment levels
- Improve household income security
- Strengthen the rand
- Reduce inflation pressure
Port Elizabeth’s economic links to manufacturing, automotive production, and logistics mean these gains directly support local economic resilience and housing demand.
3. Private Sector Investment Is Recovering Strongly
One of the most encouraging indicators identified by Dr Botha is the resurgence in private sector capital investment.
After years of subdued activity due to structural challenges and pandemic-related disruptions, private investment — particularly in construction — has rebounded.
A Construction-Led Recovery
Between early 2024 and late 2025:
- Private sector investment in buildings and construction rose sharply
- Average quarterly investment levels increased significantly compared to prior years
This recovery reflects renewed confidence in long-term economic and property demand.
Why Construction Growth Supports the Port Elizabeth Property Market
Construction activity is a key driver of economic momentum. Growth in this sector:
- Creates employment
- Supports housing supply
- Stimulates related industries
- Drives property transactions
In Port Elizabeth, this supports both new developments and renovations, particularly in well-located suburbs close to schools, hospitals, and business hubs.
What This Means for the Port Elizabeth Property Market in 2026
Taken together, these economic factors point to a stable and sustainable property market rather than a speculative boom.
Key expectations for 2026 include:
- Improved affordability for buyers
- Moderate and sustainable price growth
- Strong demand for practical, low-maintenance homes
- Continued activity in sectional title and secure estates
Port Elizabeth is well positioned to benefit from these trends due to its affordability and lifestyle appeal.
Final Outlook: A Stronger Economic Foundation for Property Growth
As highlighted by Dr Roelof Botha’s economic analysis, South Africa’s economic foundations are strengthening.
With:
- A stronger rand
- Sustained trade surpluses
- Rising private sector investment
- Controlled inflation
- The real possibility of lower interest rates
…the property market — including Port Elizabeth (Gqeberha) — is entering 2026 on firmer footing.
For buyers, sellers, and homeowners, understanding these macroeconomic signals allows for better pricing, smarter timing, and more confident property decisions.
FAQ
Q1: Will interest rates drop in South Africa in 2026?
Yes. Economic indicators such as controlled inflation, a stronger rand, and improved trade balances suggest further interest rate cuts are likely in 2026. Lower interest rates improve buyer affordability and typically increase property demand in Port Elizabeth.
Q2: How will the 2026 economy affect house prices in Port Elizabeth?
The Port Elizabeth property market is expected to see stable to moderate growth rather than a boom. Improved economic stability supports steady buyer demand, helping sellers achieve fair market value without excessive price volatility.
Q3: Is 2026 a good time to sell a house in Port Elizabeth?
Yes. With buyer confidence improving and affordability increasing, sellers in Port Elizabeth may benefit from faster sales, especially for well-priced homes in popular suburbs and secure estates.
Q4: How does a stronger rand impact the property market?
A stronger rand helps reduce inflation and borrowing costs, which supports lower interest rates. This creates favourable conditions for both buyers and sellers in the residential property market.
Q5: Will cash buyers be more active in Port Elizabeth in 2026?
Yes. Economic stability and slower interest rate cycles often increase cash buyer activity, especially among investors and homeowners seeking fast, hassle-free property sales.
Q6: Which properties will sell fastest in Port Elizabeth in 2026?
Low-maintenance homes, sectional title units, security estates, and properties priced correctly for the current market are expected to sell the fastest.
Source Credit
Economic insights and data referenced in this article are based on analysis by Dr Roelof Botha (January 2026).
