As South Africans prepare to head to the polls on 4 November 2026, it's worth considering how the decisions made at local government level can affect more than just our communities. They can also influence one of our most valuable assets — our property. Whether you're a homeowner, landlord, investor or prospective buyer, the quality of municipal leadership and service delivery plays an important role in shaping the property market. From the condition of our roads to the safety of our neighbourhoods, local government decisions can have a lasting impact on where people choose to live, what they're prepared to pay and how property values perform over time.
The financial significance of local government is substantial. According to Statistics South Africa's 2025 Financial Census of Municipalities, South African municipalities collectively generated approximately R620 billion in revenue during the 2024/25 financial year, while operating expenditure amounted to approximately R608 billion. These figures highlight the enormous responsibility municipalities carry in managing public finances and delivering the services that support our communities. At Realty Atlas, we believe that understanding these connections is an important part of making informed property decisions. Here are four ways local government can influence the value of your property.
1. Infrastructure and Maintenance
One of the most noticeable indicators of a well-managed neighbourhood is the condition of its infrastructure. Well-maintained roads, functioning streetlights, reliable water supplies and effective waste management all contribute to an area's overall appeal. When municipalities invest in infrastructure and maintain existing services, neighbourhoods can become more attractive to prospective buyers and tenants. Conversely, deteriorating roads, recurring water interruptions and neglected public spaces can discourage investment and negatively affect buyer confidence. The importance of municipal financial management is highlighted in the Auditor-General of South Africa's 2023/24 Local Government Audit Report, which found that only 41 municipalities, representing 16%, achieved clean audits.
The report also identified widespread weaknesses in financial reporting and legislative compliance. Although an audit outcome does not directly measure the quality of services delivered, poor financial controls can create significant risks for infrastructure maintenance and service delivery. For homeowners, this means that the condition of the infrastructure surrounding their property can be just as important as the condition of the property itself. A beautiful home in a poorly maintained neighbourhood may struggle to achieve the same market value as a comparable property in an area where municipal services are reliable.
Source: Auditor-General South Africa — 2023/24 Consolidated General Report on Local Government Audit Outcomes.
2. Safety and Security
Safety remains one of the most important considerations for South African property buyers, particularly families looking for a place to settle and investors seeking areas with consistent rental demand.The latest figures from Statistics South Africa's Governance, Public Safety and Justice Survey 2025/26 demonstrate why safety remains such an important consideration. According to the survey, South Africa experienced more than 1.5 million incidents of housebreaking, affecting approximately 1.08 million households, or 5.3% of all households. Perhaps even more revealing is how South Africans feel about their personal safety. While approximately 80.7% of respondents felt safe walking alone in their neighbourhoods during the day, only 37.9% felt safe doing so after dark. These figures illustrate the importance of safety and security in our communities.
Although crime prevention involves several levels of government, municipalities play an important supporting role through street lighting, by-law enforcement, the maintenance of public spaces and cooperation with law enforcement agencies. Neighbourhoods that are perceived as safe, clean and well-managed are often more desirable, which can translate into stronger demand from both buyers and tenants. This demand may help support property values and rental returns over time. The reality is that buyers are not simply purchasing a house; they are investing in a lifestyle and a community. The safer and more appealing that community is, the more attractive the properties within it may become.
Source: Statistics South Africa — Governance, Public Safety and Justice Survey 2025/26.
3. Municipal Rates, Taxes and Service Delivery
Owning property comes with ongoing financial responsibilities, and municipal rates and service charges form a significant part of those expenses. Decisions made by local councils influence property rates policies, municipal budgets and charges for services such as water, sanitation and refuse removal. These costs directly affect homeowners' monthly expenses and the profitability of investment properties. According to Statistics South Africa's 2025 Financial Census of Municipalities, property rates accounted for 16.4% of total municipal revenue nationally. Electricity sales contributed a further 27%, while water sales accounted for 9.5%.Together, these three revenue streams represented approximately 52.9% of municipal revenue, demonstrating how important property owners and municipal service consumers are to local government finances.
For landlords, increasing municipal charges can place pressure on rental returns, particularly when operating expenses rise faster than rental income. For homeowners, higher property-related costs can influence affordability and, ultimately, the amount prospective buyers are willing or able to pay. However, it's not simply about keeping rates low. A municipality that manages its finances responsibly and delivers reliable services can create a more sustainable environment for property ownership and investment. The balance between reasonable costs and effective service delivery is an important factor in maintaining a healthy local property market.
Source: Statistics South Africa — Financial Census of Municipalities, 2025 (Statistical Release P9114).
4. Urban Planning and Future Development
The decisions made today about how our cities and neighbourhoods develop can shape property values for decades to come. Municipalities influence land use, zoning, development approvals, transport planning and the provision of public amenities. These decisions determine how communities expand, where new developments take place and how effectively infrastructure supports population growth. Good urban planning requires more than approving new buildings. It involves ensuring that infrastructure, transport networks and municipal services can support the communities they serve.
The financial resources available for these responsibilities are significant. Statistics South Africa reported that municipalities received 26.2% of their total revenue from government transfers and subsidies in 2025. Of those transfers, approximately 29% were capital grants, intended to help fund long-term assets and infrastructure. This highlights the importance of how public funding is allocated and managed when planning for future development.
Well-planned development can improve accessibility, encourage economic activity and increase demand for property in surrounding areas. New transport routes, improved public spaces and thoughtfully designed residential developments can make neighbourhoods more attractive to both residents and investors. On the other hand, poorly managed development can place pressure on existing infrastructure, increase traffic congestion and affect the character and desirability of established residential areas. For property owners and investors, understanding future development plans is therefore an important part of assessing a property's long-term potential.
Source: Statistics South Africa — A 20-Year Snapshot of Municipal Finances, 2026.
Your Community, Your Future, Your Investment
Property values are influenced by many factors, including interest rates, economic conditions, supply and demand, and the overall performance of the property market. However, the quality of local governance is another important consideration that should not be overlooked. The statistics tell an important story. With municipalities collectively managing approximately R620 billion in annual revenue, only 16% achieving clean audits in the 2023/24 reporting period, and millions of South Africans affected by crime, the decisions made at local government level have real consequences for the communities in which we live. While these figures do not establish a direct percentage relationship between voting outcomes and property prices, they demonstrate the scale of the issues that local government must address. The decisions made by elected representatives can influence the infrastructure we depend on, the services we receive and the environments in which we live and work. Voting does not guarantee higher property values, but it provides citizens with an opportunity to participate in choosing the leadership responsible for many of these decisions. As we approach election day, it's worth remembering that the future of our neighbourhoods and the long-term attractiveness of our property investments are closely connected.
At Realty Atlas, we remain committed to helping our clients make informed property decisions, whether buying, selling, renting or investing.
REALTY ATLAS
All Things Real Estate Since 2011