From both a national and provincial perspective, 2025 has emerged as the strongest year for property price growth since 2021.

In that year, national house price inflation stood at 4.8%, with KwaZulu-Natal recording 4.6%. Current projections suggest that, by the end of 2025, national inflation will settle at about 4%, while KZN is expected to close around 3.5%. This represents roughly double the growth seen over the three intervening years.

It is also worth noting that KZN experienced deflation of around 0.5% in 2023, making the current recovery particularly significant.

Focusing on the North Coast, extracting precise figures remains challenging, although clearer data is expected in the coming months. That said, all indicators suggest the region has outperformed the broader provincial average.

There have been multiple instances of the same property reselling within a 12-month period at price increases of around 5%, along with several comparable “like-for-like” sales showing similar or stronger growth between the start and end of the year.

At an operational level, our own figures support this trend. As a real estate business, we recorded a 26% increase in sales volumes compared to 2024, making 2025 our strongest year on record, surpassing even the post-Covid boom of 2021.

The rental market was equally robust, with an 18% increase in activity, reflecting strong tenant demand and rising confidence.

On the ground, agents consistently reported a far more active market with improved buyer appetite throughout the year. Notably, even the traditionally quieter December period proved busier than usual, a clear signal of sustained momentum rather than seasonal spikes.

Looking ahead, while national sales volumes remain well below the peak levels seen between 2004 and 2007, current price growth suggests the market still has room to run.

In short, despite recent gains, the South African property market, particularly on the North Coast, appears to have further potential, setting the stage for an active and encouraging start to 2026.

Due to the standard three-month lag in property data becoming publicly available, this overview cannot yet be considered definitive. Current statistics only extend to the end of October 2025. However, they provide a reliable and meaningful insight into how the property market performed in 2025 and the direction in which it is heading.

Graham White is the managing director at Local Real Estate.

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