Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Johannesburg's property market is included in our pack
Johannesburg's rental market delivers some of the highest yields in Africa, with gross returns ranging from 9% to 16% depending on location and property type.
This article breaks down everything you need to know about rental yields in Johannesburg in 2026, including which neighborhoods perform best, what costs to expect, and how to maximize your returns.
We update this blog post regularly to reflect the latest market conditions and data.
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 Johannesburg.
Insights
- Johannesburg's average gross rental yield of 11.4% in 2026 significantly outperforms most global markets, where yields typically hover between 3% and 6%.
- Premium suburbs like Sandton show vacancy rates as low as 4.5% to 6%, while citywide averages sit between 8% and 12%, creating a clear divide between high-demand and softer pockets.
- The Gautrain expansion project, with R120 billion in planned investment, has historically boosted property values near stations by 3% faster than surrounding areas.
- Studios and one-bedroom apartments in Johannesburg's student hubs like Braamfontein can achieve gross yields of 12% to 13%, outperforming larger family homes by 4 to 5 percentage points.
- Bedfordview stands out with gross yields reaching up to 16.4%, making it one of the highest-performing suburbs for buy-to-let investors in Johannesburg.
- Property management in Johannesburg typically costs 8% to 12% of monthly rent, with an additional one-month rent fee for tenant placement.
- The first R300,000 of residential property value in Johannesburg is exempt from municipal rates, significantly reducing annual tax bills for entry-level investments.
- Rental growth in Johannesburg's northern suburbs has been running at approximately 6% year-on-year, outpacing inflation and signaling healthy tenant demand.
- Recent interest rate cuts to 7.25% by the South African Reserve Bank have improved property affordability, with mortgage repayments now around ZAR 15,000 to ZAR 17,000 monthly on median-priced properties.
What are the rental yields in Johannesburg as of 2026?
What's the average gross rental yield in Johannesburg as of 2026?
As of early 2026, Johannesburg's average gross rental yield sits at approximately 11.4%, making it one of the most attractive rental markets in Africa and globally.
The realistic range for gross rental yields in Johannesburg spans from about 9% for premium properties in upscale neighborhoods to 16% or higher in high-demand suburban and student areas.
Compared to South Africa's national average of around 10.5%, Johannesburg consistently delivers above-average returns, particularly in its northern suburbs and emerging investment zones.
The single most important factor currently driving Johannesburg's gross rental yields is the strong demand from young professionals, students, and expats who prefer renting in secure, well-connected neighborhoods near business districts and universities.
What's the average net rental yield in Johannesburg as of 2026?
As of early 2026, the average net rental yield in Johannesburg is approximately 7% to 9%, after deducting all recurring landlord expenses from gross rental income.
The typical difference between gross and net yields in Johannesburg ranges from 2 to 4 percentage points, depending on property type, location, and management style.
The expense category that most significantly reduces gross yield in Johannesburg is property management and vacancy allowance combined, which together can absorb 15% to 20% of gross rental income.
The realistic range for net rental yields in Johannesburg spans from about 5% in premium areas with higher operating costs to 12% in well-managed properties in high-demand suburban pockets like Randburg and Bedfordview.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Johannesburg.
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 Johannesburg in 2026?
A gross rental yield of 10% or higher is generally considered "good" by local investors in Johannesburg, as it provides a comfortable margin above inflation and financing costs.
The threshold that typically separates average-performing properties from high-performing ones in Johannesburg is around 12% gross yield, which places an investment in the upper quartile of the market.
How much do yields vary by neighborhood in Johannesburg as of 2026?
As of early 2026, the spread in gross rental yields between Johannesburg's highest-yield and lowest-yield neighborhoods is roughly 8 to 10 percentage points, with some areas delivering 16% and others closer to 6%.
The neighborhoods that typically deliver the highest rental yields in Johannesburg are those with strong tenant demand and moderate property prices, such as Randburg, Bedfordview, Braamfontein, and Melville.
The neighborhoods with the lowest rental yields tend to be premium areas where purchase prices are high relative to achievable rents, including Sandton, Rosebank, Bryanston, and Hyde Park.
The main reason yields vary so much across Johannesburg neighborhoods is the gap between property prices and rental demand, where affluent areas command premium prices that rents cannot proportionally match, while middle-market suburbs offer better rent-to-price balance.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Johannesburg.
How much do yields vary by property type in Johannesburg as of 2026?
As of early 2026, gross rental yields in Johannesburg range from about 6% to 8% for larger houses to 12% to 16% for compact apartments and studios in high-demand areas.
The property type currently delivering the highest average gross rental yield in Johannesburg is the small apartment or studio, particularly in student and young professional hubs like Braamfontein and near major universities.
The property type delivering the lowest average gross rental yield in Johannesburg is the large freestanding house, where purchase prices are high but long-term rents do not scale proportionally.
The key reason yields differ between property types in Johannesburg is that rent per square meter is typically highest for smaller units, while larger properties cost more to buy without commanding proportionally higher rents.
By the way, you might want to read the following:
- What rental yields can you expect for a house in Johannesburg?
- What rental yields can you expect for an apartment in Johannesburg?
What's the typical vacancy rate in Johannesburg as of 2026?
As of early 2026, the average residential vacancy rate in Johannesburg sits between 8% and 12%, which translates to roughly 4 to 6 weeks of vacancy per year for a typical rental property.
The realistic range of vacancy rates across Johannesburg neighborhoods spans from as low as 4.5% to 6% in premium suburbs like Sandton and Bryanston to 10% to 12% or higher in areas with oversupply or weaker demand.
The main factor currently driving vacancy rates in Johannesburg is tenant demand concentration, where properties near business districts, universities, and transport links fill quickly, while those in less connected areas take longer to let.
Compared to national averages, Johannesburg's vacancy rates are competitive, with premium areas performing significantly better than the Western Cape's already-low 2% to 3% rates in top suburbs, while outer areas align with broader South African patterns.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Johannesburg.
What's the rent-to-price ratio in Johannesburg as of 2026?
As of early 2026, the average rent-to-price ratio in Johannesburg is approximately 0.95% monthly, meaning annual rent represents about 11.4% of the purchase price.
A rent-to-price ratio of 1% or higher monthly is generally considered favorable for buy-to-let investors in Johannesburg, as this directly translates to a gross yield of 12% or more before expenses.
Compared to other major African cities, Johannesburg's rent-to-price ratio is highly competitive, significantly outperforming Cape Town's 7% to 9% gross yields and rivaling or exceeding returns in cities like Nairobi and Lagos.
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 Johannesburg give the best yields as of 2026?
Where are the highest-yield areas in Johannesburg as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Johannesburg are Bedfordview, Randburg, and Braamfontein, where gross returns consistently reach 12% to 16%.
In these top-performing areas, the estimated average gross rental yield range is 11% to 16%, with Bedfordview frequently hitting the upper end of this range for well-positioned apartments and townhouses.
The main characteristic these high-yield areas share is strong, consistent tenant demand from young professionals, students, and middle-income families, combined with moderate property prices that have not yet been bid up to premium levels.
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 Johannesburg.
Where are the lowest-yield areas in Johannesburg as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Johannesburg are Sandton, Rosebank, and Hyde Park, where prestige pricing compresses gross returns to 6% to 8%.
In these low-yield areas, the estimated average gross rental yield range is 6% to 9%, which remains positive but trails the city average by 3 to 5 percentage points.
The main reason yields are compressed in these premium Johannesburg areas is that property prices reflect lifestyle value, corporate demand, and capital appreciation potential rather than immediate rental income.
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 Johannesburg.
Which areas have the lowest vacancy in Johannesburg as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Johannesburg are Sandton, Bryanston, and Braamfontein, where rates sit between 4.5% and 6%.
In these low-vacancy areas, the estimated vacancy rate range is 4% to 7%, meaning properties typically sit empty for less than 3 weeks per year on average.
The main demand driver keeping vacancy low in these Johannesburg areas is proximity to major business districts, universities, and secure lifestyle amenities that attract executives, professionals, and students who need reliable housing.
The trade-off investors typically face when targeting these low-vacancy areas is accepting lower gross yields in exchange for more stable, predictable rental income and higher-quality tenant profiles.
Which areas have the most renter demand in Johannesburg right now?
The top three neighborhoods currently experiencing the strongest renter demand in Johannesburg are Sandton, Braamfontein, and Fourways, where rental listings move quickly and competition among tenants is high.
The renter profile driving most of the demand in these areas includes young professionals working in nearby business districts, university students at institutions like Wits, and families seeking secure estates with good schools.
Rental listings in these high-demand Johannesburg neighborhoods typically get filled within 2 to 4 weeks of listing, with well-priced units in Sandton and Braamfontein sometimes securing tenants within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Johannesburg.
Which upcoming projects could boost rents and rental yields in Johannesburg as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Johannesburg are the Gautrain expansion, the Waterfall City development in Midrand, and the urban renewal initiatives in Braamfontein.
The neighborhoods most likely to benefit from these projects include Fourways, Midrand, Soweto, Sunninghill, and Cosmo City, all of which sit along proposed new Gautrain routes or within developing commercial corridors.
Investors might realistically expect rent increases of 5% to 15% once these projects reach completion, based on historical patterns where Gautrain stations have driven property values 3% faster than surrounding areas.
You'll find our latest property market analysis about Johannesburg here.
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What property type should I buy for renting in Johannesburg as of 2026?
Between studios and larger units in Johannesburg, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments are the better-performing unit type in Johannesburg in terms of both rental yield and occupancy, consistently outperforming larger units.
The typical gross rental yield range for studios in Johannesburg is 10% to 13% (ZAR 6,000 to ZAR 9,000 monthly rent, roughly $325 to $490 or EUR 300 to EUR 450), compared to 7% to 10% for two-bedroom and larger units.
The main factor explaining why smaller units outperform is that the tenant pool for affordable, centrally located studios is much larger, including students, young professionals, and single expats who prioritize convenience over space.
One scenario where larger units become the better investment in Johannesburg is in family-oriented suburbs like Fourways or Randburg, where three-bedroom townhouses attract stable, long-term tenants willing to pay premium rents for security and space.
What property types are in most demand in Johannesburg as of 2026?
As of early 2026, the most in-demand property type in Johannesburg is the one-bedroom apartment in secure complexes near business districts, universities, or major transport links.
The top three property types ranked by current tenant demand in Johannesburg are one-bedroom apartments, two-bedroom apartments in secure estates, and three-bedroom townhouses in family-friendly suburbs.
The primary demographic and lifestyle trend driving this demand pattern is the growing population of young professionals and remote workers who prioritize security, connectivity, and low-maintenance living over large private gardens.
One property type currently underperforming in demand in Johannesburg is the large freestanding house in older suburbs without security estates, which increasingly struggles to attract tenants concerned about safety and maintenance costs.
What unit size has the best yield per m² in Johannesburg as of 2026?
As of early 2026, the unit size range delivering the best gross rental yield per square meter in Johannesburg is 25 to 50 square meters, which captures studios and compact one-bedroom apartments.
The typical gross rental yield per square meter for this optimal unit size in Johannesburg is ZAR 150 to ZAR 200 per m² monthly (roughly $8 to $11 or EUR 7 to EUR 10), compared to ZAR 80 to ZAR 120 per m² for larger units.
The main reason larger units have lower yield per square meter in Johannesburg is that tenants do not pay proportionally more for extra space, so landlords receive less rent per square meter as unit size increases.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Johannesburg.
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 Johannesburg as of 2026?
What are typical property taxes and recurring local fees in Johannesburg as of 2026?
As of early 2026, the estimated annual property tax for a typical ZAR 1.5 million rental apartment in Johannesburg is approximately ZAR 10,000 to ZAR 15,000 (roughly $540 to $815 or EUR 500 to EUR 750), after the R300,000 exemption on residential property values.
Other recurring local fees landlords must budget for annually in Johannesburg include refuse removal at ZAR 1,800 to ZAR 5,400 ($100 to $290 or EUR 90 to EUR 270), sewerage charges at approximately ZAR 8,400 ($455 or EUR 420), and levy fees for sectional title units.
These taxes and fees typically represent 5% to 10% of gross rental income in Johannesburg, depending on property value and municipal consumption charges.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Johannesburg.
What insurance, maintenance, and annual repair costs should landlords budget in Johannesburg right now?
The estimated annual landlord insurance cost for a typical rental property in Johannesburg is ZAR 3,000 to ZAR 6,000 ($165 to $325 or EUR 150 to EUR 300), depending on property value and coverage level.
The recommended annual maintenance and repair budget for Johannesburg rental properties is 1% to 2% of property value, which translates to ZAR 15,000 to ZAR 30,000 ($815 to $1,630 or EUR 750 to EUR 1,500) for a typical investment.
The type of repair expense that most commonly catches Johannesburg landlords off guard is electrical and plumbing work, particularly in older buildings where aging infrastructure requires unexpected upgrades.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Johannesburg is ZAR 20,000 to ZAR 40,000 ($1,085 to $2,170 or EUR 1,000 to EUR 2,000).
Which utilities do landlords typically pay, and what do they cost in Johannesburg right now?
In most Johannesburg rental arrangements, tenants pay their own electricity, water, and refuse removal costs directly to the municipality, while landlords are typically responsible only for body corporate levies in sectional title schemes.
When landlords do cover utilities, such as in furnished or serviced apartments, the estimated monthly cost is ZAR 1,500 to ZAR 3,000 ($80 to $165 or EUR 75 to EUR 150) for electricity, water, and waste management combined.
What does full-service property management cost, including leasing, in Johannesburg as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Johannesburg is 8% to 12% of collected rent, with most agencies charging around 10%, which equals ZAR 800 to ZAR 1,500 ($43 to $80 or EUR 40 to EUR 75) on a typical unit.
The typical leasing or tenant-placement fee charged on top of ongoing management in Johannesburg is equivalent to one month's rent, or approximately ZAR 8,000 to ZAR 15,000 ($430 to $815 or EUR 400 to EUR 750) depending on the property.
What's a realistic vacancy buffer in Johannesburg as of 2026?
As of early 2026, landlords in Johannesburg should set aside approximately 8% to 12% of annual rental income as a vacancy buffer, which covers potential gaps between tenants and any extended letting periods.
The typical number of vacant weeks per year that Johannesburg landlords experience is 4 to 6 weeks, though this can drop to 2 to 3 weeks in premium, high-demand suburbs and rise to 6 to 8 weeks in softer pockets.
Buying real estate in Johannesburg can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 Johannesburg, 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 an independent research firm that publishes standardized rental yield data across 100+ countries using consistent methodology. | We used it to benchmark Johannesburg's gross yields against national averages. We also referenced their quarterly yield updates for South African cities. |
| Property24 | It's South Africa's largest property portal with millions of listings and comprehensive market data. | We used it to sample asking rents and property prices across Johannesburg neighborhoods. We also tracked listing velocity to estimate vacancy rates. |
| Private Property | It's a major South African property platform providing independent listing data that complements Property24. | We used it as a second data source to reduce single-portal bias in our yield calculations. We cross-checked rent levels and neighborhood demand patterns. |
| Pam Golding Properties | It's one of South Africa's largest and most established real estate firms with formal market research capabilities. | We used it for market commentary on vacancy rates and rental growth trends. We also referenced their Sandton rental market reports for premium area data. |
| City of Johannesburg | It's the official municipal government portal publishing property rates policies and tariff schedules. | We used it to calculate realistic property tax estimates based on official rate structures. We also sourced utility tariff data for net yield calculations. |
| Statistics South Africa | It's the official national statistics agency publishing authoritative demographic and economic data. | We used it for population growth and urbanization trends affecting rental demand. We also referenced inflation data for real yield comparisons. |
| South African Reserve Bank | It's the central bank that sets interest rates and publishes monetary policy decisions affecting property financing. | We used it to track the prime lending rate for mortgage cost calculations. We also referenced rate cut announcements affecting buyer affordability. |
| Gautrain Management Agency | It's the official agency managing the Gautrain rapid rail system and publishing expansion project details. | We used it to identify infrastructure projects that could boost rents in specific corridors. We also sourced historical data on property values near existing stations. |
| BusinessTech | It's a leading South African business news outlet covering property market developments with data-driven reporting. | We used it for context on Gautrain expansion plans and their projected economic impact. We also referenced property market trend articles. |
| Absa Bank | It's one of South Africa's largest banks publishing a respected property price index based on mortgage data. | We used it to validate property price trends and anchor our yield calculations against market reality. We referenced their historical price growth data. |
| FNB Property Barometer | It's a regular property market report from First National Bank with insights into buyer and seller behavior. | We used it to understand demand drivers and market sentiment. We also referenced their vacancy and rental growth commentary. |
| Lightstone Property | It's a property analytics firm providing deeds office data and suburb-level market statistics. | We used it to validate neighborhood price trends and transaction volumes. We cross-checked our yield estimates against their suburb profiles. |
| South African Revenue Service | It's the national tax authority publishing transfer duty rates and income tax rules for landlords. | We used it to calculate transaction costs affecting investment returns. We also referenced capital gains tax rules for resale scenarios. |
| Polity.org.za | It's a South African policy and legislation portal publishing government announcements and infrastructure project details. | We used it to source official statements on the Gautrain expansion and related infrastructure investment. We referenced route determination notices. |
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