PROPERTY TRENDS
INVESTOR ADVICE FOR 2026
Marcus advises that property investors should prioritise strategic, risk-mitigating approaches focused on adaptation and resilience. He says the best value lies in enhancing or renovating existing structures, reducing the high cost and risk of new construction while gearing selectively for new developments to preserve cash flow for unforeseen demands. He shares some insider tips:
3. Municipal governance and value recovery
• The upcoming municipal elections will direct capital towards areas with good governance and functional services.
• Areas improving service delivery, safety, and infrastructure may see property value recovery.
• Investors will favour value-for-money, income-generating assets over costly new developments.
4. Tenant risk and portfolio value
• Tenant quality increasingly drives property valuations.
• Reliable, diversified tenants support strong returns; high-risk or single-tenant properties face greater exposure.
• Rising informal settlements and economic instability heighten the need for sophisticated risk management.
• To offset inconsistent municipal services, landlords must invest in essential enhancements – solar panels, inverters, water tanks, and advanced security – to attract tenants.
• Commercial investment should target smaller, convenience-focused retail centres and suburban industrial parks aligned with online retail and distribution logistics. Tenant risk directly affects property value, making rigorous screening, monitoring, and proactive arrears management critical.
• With high construction costs and regulatory pressures, successful investors will shift from greenfield developments to adaptable existing assets. Property valuation is increasingly tied to municipal and provincial governance and service delivery, driving a flight to quality areas.
• Securing portfolio value requires dual focus: managing tenant risk for stable income and investing in property enhancements to protect assets and tenants from infrastructure failures. Those navigating supply constraints and governance pressures effectively will achieve sustainable returns.
The takeout? Smart investments in adaptable, well-managed properties will define success this year. IB
FEBRUARY 2026 / INBOUND SA 21