Strong momentum predicted for commercial property in 2026 as investor confidence surges
Renewed confidence, rising transaction values and a shift in investor behaviour are predicted to influence the South African property auction landscape in 2026.
Broll Auctions and Sales’ 2026 market outlook, drawing on robust performance trends from 2025 trading data, is that conditions for growth are in place as interest rates continue to ease and funding conditions become more lenient.
“Investor sentiment has become bullish,” said Jayson-lee Collins, Director at Broll Auctions and Sales. “We are seeing buyers willing to deploy more capital now, believing that the market has bottomed out and that values will strengthen over the next five years.”
Broll Auctions and Sales expect the industrial sector to lead the market once again, supported by sustained demand for logistics space and modern warehousing.
Last year’s most sought-after assets - neighbourhood retail centres anchored by strong national tenants – are expected to continue outperforming large regional and super malls. Industrial property, particularly logistics-focused facilities, also delivered standout performance, underpinned by the continued acceleration of e-commerce and demand for efficient distribution networks. “Our most active price band in 2025 was between R20 million and R50 million, however we saw a strong demand and uptick for larger asset groups north of R100 million, with several deals surpassing these levels,” Collins said.
The office market showed clear signs of stabilisation in 2025, with vacancies steadily being absorbed and owner-occupier activity increasing. “We expect this recovery to continue, with the office market nearing pre-pandemic levels. Vacant land has also re-entered the investment conversation, supported by longer-term redevelopment plays and improving confidence in urban regeneration.”
Online auctions continued to gain traction as a value-enhancing channel, but in-room bidding remains the focal point for serious investors. “We’ve seen strong cross-pollination between online and live bidders, with digital participants increasingly choosing to experience auctions in person. Our expanded marketing capabilities are delivering more leads, more offers and a higher conversion rate of successful deals, which we expect to carry through into 2026.”
Innovation remained a key driver of growth in 2025, with timed auctions proving highly successful and crypto-enabled transactions demonstrating the firm’s flexibility in accommodating alternative payment mechanisms. “These and other innovations are expected to continue our year-on-year growth in the number of successful sales.”
On the demand side, buyer activity has become increasingly active across the board. The Western Cape remained the country’s top-performing market in 2025, with KwaZulu-Natal showing a strong uptick in activity. Johannesburg has seen growing interest in assets with upside potential as investors position for a medium-term recovery. “We are seeing experienced investors sitting on cash, targeting opportunistic buys across all asset classes. Investors are looking for the opportunity to capitalise in a recovering market, often sacrificing higher initial yields with the prospective of higher long term growth” said Collins.
Sellers continue to choose auction as a sales method for its speed, transparency and ability to secure non-suspensive, cash-based transactions.
“We are optimistic about the year ahead. Decreasing interest rates, improved funding conditions and a renewed appetite for risk are combining to create a constructive environment. We expect 2026 to deliver even bigger deals and stronger participation across all major asset classes.”
