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We've put together a complete guide to rental yields in Durban, covering everything from gross and net returns to neighborhood differences and the costs that eat into your profits.
This article is updated regularly, so the numbers and insights reflect the Durban rental market as it stands in early 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Durban.
Insights
- Durban's average gross rental yield sits around 10.9% in early 2026, which is significantly higher than most global metros and reflects the city's relatively affordable purchase prices compared to rents.
- Durban North delivers gross yields around 11.8%, outperforming the prime coastal node of Umhlanga (around 8.8%) by roughly 3 percentage points due to more balanced pricing.
- The gap between gross and net yields in Durban typically ranges from 2.5 to 3.5 percentage points, with vacancy, management fees, and municipal rates being the biggest drags on returns.
- South Africa's prime lending rate of 10.25% in early 2026 means Durban investors need yields above 10% gross just to stay ahead of financing costs on leveraged purchases.
- Vacancy rates in Durban range widely from around 3% in well-located nodes like Umhlanga Ridge to over 10% in some CBD and Beachfront buildings with older stock.
- Studios and one-bedroom apartments in Durban's Berea and CBD areas can achieve gross yields between 10.5% and 13%, but come with higher tenant turnover than family-sized units.
- The Pier 2 port concession that took effect in January 2026 is expected to strengthen rental demand in commuter-friendly nodes near the harbour, including Point and parts of Berea.
- Municipal rates in Durban typically cost landlords between 0.8% and 1.2% of the property's municipal value per year, and eThekwini's proposed tariff hikes have been in the double digits recently.
What are the rental yields in Durban as of 2026?
What's the average gross rental yield in Durban as of 2026?
As of early 2026, the average gross rental yield in Durban sits around 10.9%, which makes it one of the higher-yielding metros in South Africa.
For most typical residential properties in Durban, you can realistically expect gross yields somewhere between 10.5% and 11.2%, depending on the specific neighborhood and property type.
This puts Durban's gross yields comfortably above the national average, as cities like Cape Town and Johannesburg often see yields in the 7% to 9% range due to higher purchase prices that compress returns.
The single biggest factor keeping Durban's gross yields elevated is the city's relatively affordable property prices compared to the rents tenants are willing to pay, especially in working-class and student-heavy neighborhoods where demand remains steady.
What's the average net rental yield in Durban as of 2026?
As of early 2026, the average net rental yield in Durban falls around 8.0%, though realistic expectations range from about 7.5% to 8.6% depending on how efficiently you manage costs.
The typical difference between gross and net yields in Durban is roughly 2.5 to 3.5 percentage points, which reflects the various costs that chip away at your rental income before you see actual profit.
In Durban specifically, the expense category that takes the biggest bite out of your gross yield is usually the combination of vacancy losses and property management fees, which together can easily account for 1.5 to 2.5 percentage points of yield reduction.
Most standard investment properties in Durban land somewhere in the 7.5% to 8.6% net yield range because even well-managed rentals face unavoidable costs like municipal rates, maintenance, and the occasional void period between tenants.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Durban.
We made this infographic to show you how property prices in South Africa compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Durban in 2026?
In Durban in 2026, local investors generally consider a gross rental yield of 10% or higher to be "good," while on the net side, anything above 8% after all costs is seen as a solid return.
The threshold that separates average-performing properties from high-performing ones in Durban sits around that 10% gross mark, largely because South Africa's prime lending rate of 10.25% means investors need yields above this level to generate positive cash flow on financed purchases.
How much do yields vary by neighborhood in Durban as of 2026?
As of early 2026, gross rental yields in Durban can vary by roughly 4 percentage points between neighborhoods, ranging from around 8% in premium coastal areas to over 12% in more affordable inner-city zones.
The highest rental yields in Durban typically show up in working-class and student-heavy neighborhoods where purchase prices remain accessible but rental demand is strong, with areas like Durban North (around 11.8% gross), Berea, Glenwood, and Umbilo consistently delivering double-digit returns.
On the other end, the lowest rental yields in Durban appear in lifestyle-driven coastal suburbs where property prices carry a premium that rents simply cannot match, with Umhlanga (around 8.8% gross), La Lucia, and parts of Kloof and Hillcrest typically falling into the 7% to 9% range.
The main reason yields swing so much across Durban neighborhoods is that purchase prices in prime coastal and lifestyle areas inflate faster than the rents tenants are willing to pay, while more affordable suburbs maintain a healthier balance between what properties cost and what they earn.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Durban.
How much do yields vary by property type in Durban as of 2026?
As of early 2026, gross rental yields in Durban range from around 6.5% for luxury coastal homes up to 13% for studios and one-bedroom apartments in high-demand areas like the CBD and Berea.
Studios and one-bedroom apartments currently deliver the highest average gross rental yields in Durban, typically between 10.5% and 13%, because their lower purchase prices relative to achievable rents create a more favorable yield equation.
Freestanding family houses in Durban's suburban nodes generally deliver the lowest average gross yields, often landing between 7.5% and 10%, because their higher capital values are not matched by proportionally higher rents.
The key reason yields differ between property types in Durban comes down to the fact that rent per square meter does not scale linearly with purchase price, meaning smaller and cheaper units tend to generate more income relative to what you paid for them.
By the way, you might want to read the following:
What's the typical vacancy rate in Durban as of 2026?
As of early 2026, the typical residential vacancy rate in Durban sits around 6% to 8%, which is slightly above the national average due to the city's mixed rental stock and some oversupplied pockets.
Vacancy rates across Durban neighborhoods can range from as low as 3% to 5% in well-located areas like Umhlanga Ridge, Durban North, and Westville, up to 10% or higher in some CBD blocks and older Beachfront buildings.
The main factor driving vacancy rates up or down in Durban is the match between rental pricing and local tenant demand, with correctly priced units in convenient, safe locations filling quickly while overpriced or poorly located stock sits empty longer.
Compared to national averages, Durban's vacancy rate runs a bit higher because the city has significant student and young professional churn, plus some inner-city buildings with management issues that push up the overall metro number.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Durban.
What's the rent-to-price ratio in Durban as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Durban falls between 0.88% and 0.93%, which translates to roughly R880 to R930 in monthly rent for every R100,000 (around $4,900 or €4,500) of property value.
A rent-to-price ratio above 0.8% monthly is generally considered favorable for buy-to-let investors in Durban, and this figure is directly connected to the gross rental yield since multiplying the monthly ratio by 12 gives you the annual yield percentage.
Durban's rent-to-price ratio compares very favorably to other major South African cities like Cape Town and Johannesburg, where ratios often fall in the 0.6% to 0.75% monthly range due to higher property prices relative to rents.
We have made this infographic to give you a quick and clear snapshot of the property market in South Africa. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Durban give the best yields as of 2026?
Where are the highest-yield areas in Durban as of 2026?
As of early 2026, the top three highest-yield areas in Durban are Durban North, Berea, and Glenwood, all of which benefit from strong tenant demand driven by proximity to employment hubs, hospitals, and educational institutions.
In these top-performing neighborhoods, average gross rental yields typically range from 10.5% to nearly 12%, with Durban North specifically anchoring around 11.8% according to recent city-level data.
The main characteristic these high-yield areas share is that they offer relatively affordable purchase prices while maintaining deep, consistent rental demand from working professionals, students, and young families who need convenient access to the city.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Durban.
Where are the lowest-yield areas in Durban as of 2026?
As of early 2026, the three lowest-yield areas in Durban are Umhlanga, La Lucia, and the Kloof-Hillcrest corridor, all of which are lifestyle-driven suburbs where property prices carry significant premiums.
In these low-yield areas, average gross rental yields typically fall between 7% and 9%, with Umhlanga specifically anchoring around 8.8% according to recent data.
The main reason yields are compressed in these areas is that buyers pay a premium for coastal views, security, and lifestyle amenities, but tenants are not willing or able to pay rents that keep pace with those elevated purchase prices.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Durban.
Which areas have the lowest vacancy in Durban as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Durban are Umhlanga Ridge, Durban North, and Westville, all of which benefit from strong demand driven by convenience and perceived safety.
In these low-vacancy areas, vacancy rates typically run between 3% and 5%, meaning landlords can expect their properties to be occupied for roughly 11.5 months per year on average.
The main demand driver keeping vacancy low in these areas is the combination of proximity to major employers, good schools, and well-managed complexes that appeal to families and working professionals who stay longer once they find a suitable rental.
The trade-off investors face when targeting these low-vacancy areas is that the same desirability that keeps units occupied also inflates purchase prices, which typically results in lower gross yields compared to higher-vacancy neighborhoods with more affordable entry points.
Which areas have the most renter demand in Durban right now?
The three neighborhoods currently experiencing the strongest renter demand in Durban are Umhlanga Ridge for young professionals, Morningside for mid-career tenants, and the Berea-Glenwood corridor for students and early-career renters.
The type of renter driving most of the demand in these areas varies by location: Umhlanga Ridge attracts corporate professionals working at nearby business parks, while Berea and Glenwood draw students and medical staff linked to nearby hospitals and universities.
In these high-demand Durban neighborhoods, correctly priced rental listings typically fill within two to three weeks, though premium units in Umhlanga Ridge can move even faster due to the limited supply of quality stock.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Durban.
Which upcoming projects could boost rents and rental yields in Durban as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Durban are the Pier 2 port concession that took effect in January 2026, the ongoing Point Waterfront precinct development, and the planned expansion of the Go!Durban transport network.
The neighborhoods most likely to benefit from these projects are Point, the CBD harbour edge, and parts of Berea for the port-related activity, while the Point Waterfront development could lift rents along the Beachfront corridor as the precinct matures.
Investors might realistically expect rent increases of 5% to 10% above normal inflation in areas directly affected by these projects once they reach meaningful completion, though the timeline for full impact varies and the Go!Durban transport project remains uncertain.
You'll find our latest property market analysis about Durban here.
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What property type should I buy for renting in Durban as of 2026?
Between studios and larger units in Durban, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units on rental yield in Durban, but two-bedroom units tend to offer better occupancy stability and lower tenant turnover.
Studios in Durban typically achieve gross yields between 10.5% and 13% (roughly R875 to R1,080 per R100,000, or $48 to $60 / €44 to €55 per $1,000 invested monthly), while two-bedroom units generally yield 9% to 11% due to their higher purchase prices.
The main reason studios outperform on yield is that their lower entry cost relative to achievable rents creates a more favorable income-to-price ratio, even though per-unit rental rates are lower in absolute terms.
However, larger two-bedroom units can be the better choice if you are targeting family tenants in suburbs like Durban North or Westville, where tenants tend to stay for years rather than months and vacancy risk drops significantly.
What property types are in most demand in Durban as of 2026?
As of early 2026, the most in-demand property type in Durban is the well-located apartment in a secure complex with covered parking, which appeals to the city's large pool of young professionals and small families.
The top three property types ranked by tenant demand in Durban are secure apartments (especially two-bedrooms), townhouses in gated complexes offering lock-up-and-go convenience, and freestanding houses with a separate cottage that can generate a second income stream.
The primary trend driving this demand pattern is the growing preference for security and convenience among Durban's working population, who increasingly favor managed complexes over standalone properties that require more personal oversight.
One property type that is currently underperforming in demand is the large luxury home without sectional title, as these properties attract a smaller tenant pool, take longer to let, and often sit vacant between tenancies in areas like La Lucia and upper Kloof.
What unit size has the best yield per m² in Durban as of 2026?
As of early 2026, units between 30 and 50 square meters deliver the best gross rental yield per square meter in Durban, as these compact apartments maximize rental income relative to their purchase cost.
For this optimal unit size, the typical gross rental yield per square meter works out to roughly R180 to R220 per square meter monthly (around $10 to $12 / €9 to €11 per square meter), compared to R120 to R150 for larger family units.
The main reason smaller units achieve higher yield per square meter is that tenants pay for functionality and location rather than space, so doubling a unit's size does not double what renters are willing to pay.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Durban.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Durban as of 2026?
What are typical property taxes and recurring local fees in Durban as of 2026?
As of early 2026, annual property rates (municipal property tax) for a typical rental apartment in Durban run between R8,000 and R15,000 per year (roughly $440 to $825 or €400 to €750), depending on the property's municipal valuation.
Beyond rates, Durban landlords must also budget for refuse removal, sewerage charges, and sectional title levies if applicable, which together can add another R12,000 to R30,000 per year ($660 to $1,650 / €600 to €1,500) for an average apartment in a managed complex.
These taxes and fees typically represent around 8% to 15% of gross rental income in Durban, which is a meaningful chunk that explains much of the gap between gross and net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Durban.
What insurance, maintenance, and annual repair costs should landlords budget in Durban right now?
Annual landlord insurance for a typical rental property in Durban costs between R3,000 and R8,000 ($165 to $440 / €150 to €400), depending on coverage level and the property's location and value.
As a general rule, Durban landlords should budget around 0.8% to 1.5% of the property's value per year for maintenance and repairs, which works out to roughly R16,000 to R30,000 ($880 to $1,650 / €800 to €1,500) for a R2 million property.
The repair expense that most commonly catches Durban landlords off guard is corrosion and moisture damage in coastal and Beachfront properties, where the salt air accelerates deterioration of metal fittings, balcony railings, and exterior paintwork far faster than in inland areas.
All told, landlords should realistically budget a combined R20,000 to R40,000 per year ($1,100 to $2,200 / €1,000 to €2,000) for insurance, maintenance, and unexpected repairs on a typical Durban rental property.
Which utilities do landlords typically pay, and what do they cost in Durban right now?
In Durban, landlords of apartments and townhouses typically do not pay electricity or water directly since these are separately metered and billed to tenants, but landlords may cover refuse and sewerage through their rates account or indirectly through sectional title levies.
For freestanding houses, landlords sometimes pay the fixed municipal service charges that include refuse and sewerage, which typically run R400 to R800 per month ($22 to $44 / €20 to €40), while tenants pay metered utilities like electricity and water based on their own consumption.
What does full-service property management cost, including leasing, in Durban as of 2026?
As of early 2026, full-service property management in Durban typically costs between 8% and 12% of monthly rent collected, which works out to roughly R800 to R1,800 per month ($44 to $99 / €40 to €90) on a R10,000 to R15,000 rental.
On top of ongoing management, leasing or tenant-placement fees in Durban typically run around R1,000 to R2,000 ($55 to $110 / €50 to €100) per new lease, plus inspection fees of approximately R500 ($28 / €25) each for incoming and outgoing checks.
What's a realistic vacancy buffer in Durban as of 2026?
As of early 2026, Durban landlords should set aside around 6% to 8% of annual rental income as a vacancy buffer, which reflects the city's typical void periods and tenant turnover patterns.
In practical terms, this means budgeting for roughly three to four vacant weeks per year in well-located areas, though higher-churn nodes like the CBD or student areas may see closer to five or six weeks of vacancy annually.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Durban, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Global Property Guide | It's a long-running international dataset that publishes city-level yield tables with a clear, replicable method. | We used its Durban gross yield table (including Durban North, Morningside, Umhlanga) as our anchor for gross yields. We then sanity-checked it against South African rental growth and vacancy benchmarks to keep the early 2026 estimate realistic. |
| PayProp Rental Index (Q3 2025) | PayProp processes large volumes of rental transactions and publishes a transparent quarterly index from that data. | We used it to understand the rent-growth environment going into January 2026, which matters because yields move with rents. We applied it as a reasonableness check: if rents rose around 5% year-on-year, yields shouldn't swing wildly without big price moves. |
| TPN Vacancy Survey Report (Q3 2024) | It's produced by TPN (MRI Software), a specialist tenant credit bureau whose data is widely used in South Africa's rental industry. | We used its national vacancy benchmarks as the starting point for a Durban vacancy assumption. We then adjusted for Durban's mix of student, coastal, and CBD rental stock, which typically creates wider vacancy dispersion by node. |
| TPN Vacancy Survey landing page | It's the publisher's own resource page summarizing the same survey and highlighting provincial differences. | We used it to support the point that vacancy can differ meaningfully by province, including KwaZulu-Natal. We treated it as directional and kept the final Durban vacancy estimate conservative. |
| South African Reserve Bank MPC | It's the South African Reserve Bank's official page for policy rates and MPC information. | We used the January 2026 repo and prime rates to frame financing pressure on landlords and buyers. We also used it to explain why "good yield" thresholds in Durban need to clear high borrowing costs. |
| Stats SA CPI release (Sept 2025) | It's the official inflation release from Statistics South Africa. | We used it to anchor the inflation backdrop that affects rent increases and operating costs. We then explained yields in real-world terms, showing what beats inflation after costs. |
| Stats SA Residential Property Price Index | It's the official property price index statistical release by the national statistics agency. | We used it as a macro cross-check that South African home prices were not in a boom phase, supporting steadier yields. We did not treat it as Durban-specific, only as a national reality check. |
| Stats SA RPPI methodology report | It documents how the official property price index is built, including sources, weighting, and approach. | We used it to justify why the RPPI is a credible macro cross-check. We also used it to keep our triangulation transparent rather than relying on opaque indexing. |
| Property24 | It's a major South African property portal and it cites PayProp plus SA rental legislation context. | We used its concrete, SA-specific fee examples (lease fee, inspections, monthly admin) to build a realistic net-yield cost stack. We treated these as typical ranges and still stress-tested them against a full-service management assumption. |
| Transnet press release | It's a primary source from the state-owned port and logistics operator. | We used it to support the case for infrastructure-driven employment and logistics activity feeding rental demand in specific nodes. We then translated that into where rents could firm rather than promising guaranteed rent spikes. |
| EWN | It's a mainstream national newsroom report covering a major, dated transaction with clear economic implications. | We used it to reinforce the early 2026 timing and why port-linked nodes may see stronger tenant demand. We used it as corroboration alongside Transnet's own releases. |
| Durban Point Waterfront | It's the official site outlining the precinct's development plan and positioning. | We used it to identify one of Durban's most material inner-city residential regeneration stories. We then linked it to micro-area yield potential and the risks around Point and Beachfront. |
| The Star | It's a large South African newspaper report that quotes the city's proposed tariff increases. | We used it to justify why utilities and municipal charges are a real net-yield drag in Durban. We treated it as cost direction and kept actual landlord budgeting ranges conservative. |
| eThekwini Municipality | It's the municipality explaining the mechanics of property rates using a worked example. | We used it to support the cents-in-the-rand times municipal value method for calculating rates. We then converted that into a practical annual budgeting range per R1 million of municipal value. |
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