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What steady interest rate means for property market

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Economic recovery often boosts property demand, as more people gain income confidence to invest in housing, commercial property and land.
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On November 21, 2025, the Central Bank of Eswatini announced that it will maintain the discount rate at 6.75 per cent, following its Monetary Policy Consultative Committee meeting.

This decision was made after reviewing global, regional and domestic economic conditions, with the aim of maintaining price stability and protecting the Lilangeni’s parity with the South African Rand.

From a property and real estate perspective, this stability in interest rates is a positive signal for the market.

With borrowing costs remaining unchanged, home buyers and property investors can plan with more certainty. Mortgage repayments are unlikely to rise in the short term, which supports affordability for first-time buyers and encourages investors to proceed with housing developments, land purchases and property construction projects.

The statement also highlighted a rebound in Eswatini’s GDP growth to 3.4 per cent in the second quarter of 2025, driven mainly by improvements in the secondary sector. Economic recovery often boosts property demand, as more people gain income confidence to invest in housing, commercial property and land.

However, inflation pressures from higher taxes on alcohol and tobacco, along with rising public debt, may affect disposable income levels. This means while the property market remains supported by stable interest rates, buyers and investors must still plan carefully and budget wisely.

For the property sector, this current environment presents:

  • An opportunity for affordable mortgage access
  • A stable period for property development and investment planning
  • A supportive environment for long-term property ownership, especially for those aligned with a Buy-Wait-Grow strategy

“At MGI-PRO, we continue to monitor these economic developments closely to help our clients make informed property decisions in a changing financial environment.”

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