Rental escalations ease as economic pressure persists
Despite ongoing economic challenges, 83% of tenants remained in good standing in Q2 of 2024. Rigorous tenant vetting and collection processes have enabled landlords to maintain stability, even as rising operational costs, maintenance, and security expenses put pressure on property owners. Rental escalations slowed across most regions, particularly in the R3 000 to R7 000 rental value band, as landlords cautiously manage vacancies. While some provinces like Gauteng experienced slower growth, sectional title properties showed strong returns, with yields reaching 10.79%.
To learn more about the latest trends in the South African rental market, download the TPN Residential Rental Monitor Q2 2024.