SARB Raises the Repo Rate to 7.25%: What It Means for South African Property Plans
The SARB raised the repo rate to 7.25% and prime to 10.75% on 25 September 2026. What it means for bonds and Dubai property plans.
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The SARB lifted the repo rate to 7.25% in September 2026. What the decision means for bond costs and for South Africans weighing a Dubai purchase.
South Africa Property Insights · Interest Rates SARB Raises the Repo Rate to 7.25%: What It Means for South African Property Plans South Africans planning a property purchase, at home or in Dubai, now face a higher cost of borrowing. This guide summarises the Reserve Bank’s September decision and the questions it raises for buyers. What the Reserve Bank Decided On 25 September 2026 the Monetary Policy Committee unanimously raised the repo rate by 25 basis points to 7.25%. Commercial banks’ prime lending rate rises to 10.75%. Reports describe it as the second hike of 2026, following a hold in July. Governor Lesetja Kganyago said inflation, at 4.4%, faces upside risks and that longer-run expectations sit around 4%, above the 3% target. Fuel prices have begun rising again, while food inflation is at its lowest level since 2010. The rand has stayed resilient, which has helped contain import prices. Why It Matters for Property A higher prime rate raises the monthly instalment on a variable-rate home loan. If you plan to buy locally, ask your bank to recalculate affordability at the new rate. If you hold a South African bond while considering a Dubai purchase, the higher cost of that debt is part of your cash-flow picture. Questions to Ask Before You Commit Bond costs: what is your instalment at 10.75% prime, and what if rates rise again? Funding source: will the Dubai deposit come from savings, a bond release or an offshore allowance? Currency: how would a weaker rand change the rand cost of dirham payments? Buffer: can you carry both obligations if rents or income fall short? The Takeaway Rate decisions change the cost of borrowing, not the quality of a property. Run your numbers at today’s rates and with a margin for further moves. For more on the currency side, read our guide on how the rand-to-dirham exchange rate affects your purchase and our overview of financing a Dubai property from South Africa , or speak to a Banke consultant . Details come from SARB coverage checked in October 2026 and can change; this is general information, not financial advice.
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