Rental Market 2025

Good news for homeowners in South Africa: the average rental has increased substantially over the last few years. Homeowners can now begin to recover from the lower and even negative returns experienced following the pandemic.

Rental growth for this quarter reached slightly more than 5% nationwide. The residential rental market is healthy across all provinces and continues to show strong tenant demand. However, the economic slowdown could dampen further rental growth. The vacancy rate is the lowest since 2016, also indicating that the market is stable.

The risk assessment of tenants has also improved in 2025, further supporting the view that the current rental market in South Africa is stable. This is encouraging news not only for landlords but also for letting agents.

In summary: South Africa’s rental market is strong, with the national average rent exceeding R9,000, vacancy rates at decade lows, and rental growth levels not seen since 2017. However, some segments of the population are still under pressure, highlighting the need for balanced pricing and regional sensitivity.

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