The Construction Alliance South Africa (CASA) has raised concerns about the continued elevated interest rate environment, warning that it is placing significant pressure on the country’s construction sector.
Higher borrowing costs are discouraging new developments, with many projects being delayed or cancelled. The residential market has been particularly affected, as rising mortgage rates reduce affordability and weaken demand for new housing.
CASA notes that the construction industry is highly sensitive to interest rates and that sustained high levels are contributing to declining project pipelines, reduced investment, and slower delivery of critical infrastructure.
The Alliance cautions that these conditions not only impact industry growth but also pose risks to employment and broader economic recovery, given the sector’s role as a key driver of jobs and infrastructure development.
CASA has called for a coordinated response to support the sector, including increased public infrastructure investment and measures to improve access to development finance.
