Construction activity rebounds as building plans, home loan applications rise

ACTIVITY in the building and construction industry in South Africa is expected to continue gaining momentum for the remainder of the year due to the upward trend in the value of building plans passed.

- SIPHELELE DLUDLA

This comes as mining and materials group Afrimat on Monday reported a sharp rebound in South Africa’s construction sector during the second quarter of 2025, with its Afrimat Construction Index (ACI) showing broad-based improvements across key indicators.

Compiled by economist Dr. Roelof Botha on behalf of Afrimat, the ACI measures activity in the building and construction industry.

Botha said the latest reading reflected a 6.8% quarter-on-quarter rise, outpacing national GDP growth.

According to Botha, the recovery of the ACI was, however, fairly predictable, as the indicators included in the index came off a low base recorded in the first quarter of the year. He said the further marginal decline in the prime overdraft rate during the second quarter also played a role in the improvement.

“A strong rebound occurred since the first quarter of 2025 for several key indicators, most notably the value of buildings completed, up by 21.7%, the sales aie of building materials, up 13%, and the volume of building materials produced, up 10%,” Botha said.