Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Cape Town's property market is included in our pack
If you're thinking about renting out property in Cape Town, you probably want to know what rents look like right now and where the market is heading.
This blog post breaks down the latest rental data for Cape Town in 2026, covering everything from typical rents by unit size to which neighborhoods attract the best tenants.
We update this article regularly to keep the numbers fresh and reliable.
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 Cape Town.
Insights
- Cape Town's rental vacancy sits around 2% to 4% in January 2026, which is tighter than the national average of about 5.4%, meaning landlords in Cape Town have strong leverage when setting rents.
- A well-priced apartment in Sea Point or Green Point typically rents within 7 to 14 days in Cape Town, while overpriced luxury units can sit for 45 days or more.
- Backup power systems like inverters or solar setups have become a top rent booster in Cape Town, with tenants willing to pay a premium for load-shedding resilience.
- Cape Town rents grew between 5% and 7% year-over-year in 2025, outpacing the national escalation rate of about 4.76% due to persistently tight supply.
- The Atlantic Seaboard neighborhoods like Camps Bay and Clifton command 2-bedroom rents above R35,000 per month, which is more than double what you would pay in mainstream suburbs like Parklands.
- January and February are the peak rental months in Cape Town, driven by student moves, new job starts, and relocation waves before the year gets busy.
- Expats in Cape Town cluster heavily in Sea Point, Green Point, and the City Bowl, where English-speaking services, walkability, and lifestyle amenities are abundant.
- Young professionals in Cape Town typically pay between R11,000 and R18,000 per month for 1-bedroom apartments in areas like Gardens, Oranjezicht, or Woodstock.
- Furnished rentals are unusually common in Cape Town's premium nodes because the city attracts a steady flow of short-term professionals and relocating households.
- Property rates in Cape Town for 2025/26 are calculated using a rate-in-the-Rand of 0.007159, meaning a R2 million municipal valuation results in about R14,300 per year in rates.
What are typical rents in Cape Town as of 2026?
What's the average monthly rent for a studio in Cape Town as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Cape Town is around R9,000 (approximately $500 USD or €460 EUR), though this varies significantly depending on location and finish level.
Most studios in Cape Town rent between R8,000 and R16,000 per month ($445 to $890 USD or €410 to €820 EUR), with the lower end found in well-located mainstream suburbs and the upper end in prime areas like Sea Point or the City Bowl.
The main factors causing studio rents to vary in Cape Town are neighborhood desirability, proximity to the Atlantic Seaboard, building security features, and whether the unit includes backup power or modern finishes.
What's the average monthly rent for a 1-bedroom in Cape Town as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Cape Town is around R13,000 (approximately $720 USD or €665 EUR), representing a solid mid-market price point for the city.
Most 1-bedroom apartments in Cape Town rent between R11,000 and R22,000 per month ($610 to $1,220 USD or €565 to €1,130 EUR), covering everything from mainstream suburbs to prime locations in Sea Point and Green Point.
The cheapest 1-bedroom rents in Cape Town are found in value-oriented suburbs like Table View and Parklands, while the highest rents appear in the City Bowl, Sea Point, and the ultra-premium Atlantic Seaboard areas like Camps Bay.
What's the average monthly rent for a 2-bedroom in Cape Town as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Cape Town is around R19,000 (approximately $1,055 USD or €975 EUR), though this figure masks significant variation across neighborhoods.
Most 2-bedroom apartments in Cape Town rent between R16,000 and R35,000 per month ($890 to $1,945 USD or €820 to €1,795 EUR), with premium Atlantic Seaboard properties often exceeding R50,000 for top-end furnished units.
The most affordable 2-bedroom rents in Cape Town are in suburbs like Durbanville, Table View, and Parklands, while the priciest are in Camps Bay, Clifton, and Bantry Bay, where rents can reach R85,000 or more per month.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Cape Town.
What's the average rent per square meter in Cape Town as of 2026?
As of early 2026, the average rent per square meter in Cape Town is around R270 (approximately $15 USD or €14 EUR), representing a solid middle ground for well-located apartments in the city.
Rent per square meter in Cape Town ranges from about R220 to R550 ($12 to $31 USD or €11 to €28 EUR), with mainstream neighborhoods at the lower end and prime Atlantic Seaboard and top City Bowl locations at the upper end.
Compared to Johannesburg and Pretoria, Cape Town's rent per square meter tends to run 15% to 25% higher due to its constrained geography, lifestyle appeal, and strong demand from both locals and international tenants.
Properties that push rent per square meter above average in Cape Town typically feature sea or mountain views, secure parking, backup power solutions, and modern finishes in sought-after security complexes.
How much have rents changed year-over-year in Cape Town in 2026?
As of early 2026, rents in Cape Town have increased by approximately 5% to 7% compared to January 2025, outpacing the national average rental escalation of about 4.76%.
The main factors driving rent increases in Cape Town this year are persistently low vacancy rates, limited new supply in desirable areas, and strong demand from young professionals and relocating households.
This year's rent growth in Cape Town is slightly higher than the previous year's trend, as the market continues to tighten and landlords have more pricing power in well-located neighborhoods.
What's the outlook for rent growth in Cape Town in 2026?
As of early 2026, rent growth in Cape Town is projected to continue at around 4% to 7% over the coming year, supported by tight supply and sustained demand for well-located apartments.
The key factors likely to influence Cape Town rent growth are interest rate movements, continued migration into the city from other provinces, and whether new apartment supply can keep pace with demand.
Neighborhoods expected to see the strongest rent growth in Cape Town include Sea Point, Green Point, and the City Bowl fringe areas, where demand consistently outstrips available stock.
The main risks that could cause rent growth to differ from projections include a sharp drop in interest rates that pulls renters into buying, or an unexpected surge in new apartment completions in popular areas.
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 rent best in Cape Town as of 2026?
Which neighborhoods have the highest rents in Cape Town as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Cape Town are Camps Bay, Clifton, and Bantry Bay, where 2-bedroom apartments regularly exceed R50,000 per month ($2,780 USD or €2,565 EUR).
These Atlantic Seaboard neighborhoods command premium rents in Cape Town because of their stunning ocean views, proximity to beaches, high security standards, and the prestige associated with living in these addresses.
The typical tenant profile in these high-rent Cape Town neighborhoods includes affluent professionals, business executives, and international expats who prioritize lifestyle, safety, and access to the city's best amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cape Town.
Where do young professionals prefer to rent in Cape Town right now?
The three neighborhoods where young professionals most prefer to rent in Cape Town are Gardens and Oranjezicht in the City Bowl, Sea Point along the Atlantic Seaboard, and Woodstock near the creative district.
Young professionals in these Cape Town neighborhoods typically pay between R11,000 and R18,000 per month ($610 to $1,000 USD or €565 to €925 EUR) for 1-bedroom apartments, depending on the building and finishes.
These neighborhoods attract young professionals in Cape Town because of their walkability, vibrant dining and nightlife scenes, easy commutes to offices in the CBD, and a strong sense of community and safety.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Cape Town.
Where do families prefer to rent in Cape Town right now?
The three neighborhoods where families most prefer to rent in Cape Town are Rondebosch, Claremont, and Constantia, all located in the Southern Suburbs school belt with excellent access to top-rated schools.
Families renting 2 to 3 bedroom homes in these Cape Town neighborhoods typically pay between R20,000 and R40,000 per month ($1,110 to $2,220 USD or €1,025 to €2,050 EUR), with larger properties in Constantia reaching higher.
These neighborhoods attract families in Cape Town because they offer spacious homes, quiet tree-lined streets, proximity to parks and outdoor spaces, and a strong sense of community safety.
Top-rated schools near these family-friendly Cape Town neighborhoods include Rondebosch Boys and Girls, Bishops, Herschel, and Rustenburg, along with excellent primary schools feeding into the Southern Suburbs education network.
Which areas near transit or universities rent faster in Cape Town in 2026?
As of early 2026, the three areas near transit or universities that rent fastest in Cape Town are Observatory, Rondebosch, and Mowbray, all located along the UCT corridor with strong student and young professional demand.
Properties in these high-demand Cape Town areas typically stay listed for only 7 to 14 days when priced correctly, compared to 20 to 30 days in less central suburbs.
The rent premium for properties within walking distance of UCT or the MyCiTi bus routes in Cape Town is around R1,500 to R3,000 per month ($85 to $165 USD or €75 to €155 EUR) above comparable units further from transit.
Which neighborhoods are most popular with expats in Cape Town right now?
The three neighborhoods most popular with expats in Cape Town are Sea Point, Green Point, and De Waterkant, all offering walkable streets, English-friendly services, and easy access to the Waterfront and beaches.
Expats renting in these Cape Town neighborhoods typically pay between R15,000 and R30,000 per month ($835 to $1,665 USD or €770 to €1,540 EUR) for 1 to 2 bedroom apartments, with furnished options at the higher end.
These neighborhoods attract expats in Cape Town because of their cosmopolitan atmosphere, high safety perception, abundance of cafes and restaurants, and proximity to international-standard amenities.
The expat communities most represented in these Cape Town neighborhoods include British, German, Dutch, and American professionals, along with a growing number of digital nomads from across Europe and North America.
And if you are also an expat, you may want to read our exhaustive guide for expats in Cape Town.
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Who rents, and what do tenants want in Cape Town right now?
What tenant profiles dominate rentals in Cape Town?
The three tenant profiles that dominate the Cape Town rental market are young professionals working in the CBD and tech sectors, students and recent graduates near universities, and families seeking quality schools in the Southern Suburbs.
Young professionals represent roughly 35% to 40% of Cape Town renters, students and early-career tenants make up about 25% to 30%, and families account for around 20% to 25% of the rental market.
Young professionals typically seek 1-bedroom apartments in walkable areas, students look for bachelor units or shared accommodation near UCT, and families prefer 2 to 3 bedroom houses in suburbs like Rondebosch or Claremont.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Cape Town.
Do tenants prefer furnished or unfurnished in Cape Town?
In Cape Town, approximately 70% to 75% of long-term tenants prefer unfurnished rentals, while furnished units are popular with about 25% to 30% of the market, particularly in lifestyle neighborhoods.
The rent premium for furnished apartments in Cape Town is typically R3,000 to R8,000 per month ($165 to $445 USD or €155 to €410 EUR) above comparable unfurnished units, depending on furniture quality and location.
Furnished rentals in Cape Town are most popular with expats, short-term corporate relocations, and digital nomads who want to move in quickly without the hassle of buying furniture for a temporary stay.
Which amenities increase rent the most in Cape Town?
The five amenities that increase rent the most in Cape Town are secure parking, backup power systems, fibre internet, sea or mountain views, and pet-friendly policies.
Secure parking adds about R1,000 to R2,500 per month ($55 to $140 USD or €50 to €130 EUR), backup power adds R1,500 to R3,000 ($85 to $165 USD), fibre adds R500 to R1,000 ($30 to $55 USD), views add R2,000 to R10,000 ($110 to $555 USD), and pet-friendly policies can add R1,000 to R2,000 ($55 to $110 USD) in Cape Town.
In our property pack covering the real estate market in Cape Town, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Cape Town?
The five renovations that get the best ROI for Cape Town rental properties are installing backup power, refreshing kitchens and bathrooms, repainting interiors, upgrading security systems, and adding fibre internet connectivity.
Backup power installation costs R15,000 to R50,000 ($835 to $2,780 USD or €770 to €2,565 EUR) and can increase rent by R1,500 to R3,000 monthly, kitchen and bathroom refreshes cost R30,000 to R80,000 and add R2,000 to R4,000 to rent, while repainting costs R10,000 to R25,000 and helps reduce vacancy time significantly in Cape Town.
Renovations with poor ROI that Cape Town landlords should avoid include over-the-top luxury finishes in mainstream suburbs, swimming pool installations in apartment complexes, and expensive landscaping that tenants do not value enough to pay more for.
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.
How strong is rental demand in Cape Town as of 2026?
What's the vacancy rate for rentals in Cape Town as of 2026?
As of early 2026, the vacancy rate for rental properties in Cape Town is estimated at around 2% to 4%, which is significantly tighter than the national average of approximately 5.4%.
Vacancy rates vary across Cape Town neighborhoods, with prime areas like Sea Point and Green Point sitting at around 2% to 3%, while some outer suburbs may see vacancies closer to 4% to 5%.
The current Cape Town vacancy rate is lower than the historical average, reflecting sustained demand from young professionals, expats, and families combined with limited new apartment supply in desirable locations.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Cape Town.
How many days do rentals stay listed in Cape Town as of 2026?
As of early 2026, the average number of days rentals stay listed in Cape Town is around 14 to 20 days for well-priced mainstream apartments, though prime units can move in under two weeks.
Days on market vary significantly in Cape Town, with correctly priced 1-bedroom apartments in Sea Point or the City Bowl renting in 7 to 14 days, while luxury properties or overpriced listings can sit for 30 to 45 days or longer.
The current days-on-market figure in Cape Town is roughly similar to one year ago, as the market remains tight and well-priced properties continue to attract tenants quickly.
Which months have peak tenant demand in Cape Town?
The peak months for tenant demand in Cape Town are January and February, when students move for the new academic year, new jobs start, and households relocate before the year gets busy.
The seasonal demand pattern in Cape Town is driven by the university calendar at UCT and other institutions, corporate hiring cycles that start in January, and families wanting to settle before the school year begins.
The lowest tenant demand in Cape Town typically occurs in June and July, the middle of winter, when fewer people move and the rental market slows down temporarily.
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What will my monthly costs be in Cape Town as of 2026?
What property taxes should landlords expect in Cape Town as of 2026?
As of early 2026, a typical annual property tax (municipal rates) bill for landlords in Cape Town is around R14,000 to R18,000 ($780 to $1,000 USD or €720 to €925 EUR) for a property valued at approximately R2 million.
Annual property taxes in Cape Town range from about R7,000 to R50,000 ($390 to $2,780 USD or €360 to €2,565 EUR) depending on whether you own a modest apartment or a premium Atlantic Seaboard property.
Property taxes in Cape Town are calculated using the City's rate-in-the-Rand (0.007159 for 2025/26), multiplied by your municipal valuation, which is based on the General Valuation Roll 2022 and may differ from current market value.
Please note that, in our property pack covering the real estate market in Cape Town, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Cape Town right now?
A realistic annual maintenance budget for a typical rental property in Cape Town is around R15,000 to R30,000 ($835 to $1,665 USD or €770 to €1,540 EUR) for apartments, and R30,000 to R60,000 for freestanding houses.
Maintenance costs in Cape Town range from about R10,000 per year for newer, well-built apartments to R80,000 or more for older houses requiring regular repairs to roofs, plumbing, and exterior paint.
Most landlords in Cape Town set aside roughly 5% to 10% of annual rental income for maintenance, with coastal properties requiring more frequent attention due to salt air and winter rain exposure.
What utilities do landlords often pay in Cape Town right now?
The utilities Cape Town landlords most commonly pay on behalf of tenants are municipal rates, body corporate levies (for sectional title properties), and building insurance, while tenants typically pay their own electricity and water usage.
Municipal rates cost landlords approximately R1,000 to R2,500 per month ($55 to $140 USD or €50 to €130 EUR), body corporate levies range from R1,500 to R5,000 monthly depending on the building, and landlord insurance adds R300 to R800 per month.
The common practice in Cape Town is for landlords to cover fixed property costs while tenants pay for consumption-based utilities like electricity, water, and internet, often through prepaid meters or direct billing.
How is rental income taxed in Cape Town as of 2026?
As of early 2026, rental income in South Africa is taxed as part of your total taxable income at marginal rates ranging from 18% to 45%, depending on your overall income bracket.
The main deductions Cape Town landlords can claim against rental income include bond interest, property management fees, repairs and maintenance, municipal rates, insurance premiums, and agent commissions.
A common tax mistake Cape Town landlords make is failing to separate capital improvements from repairs, since improvements must be capitalized rather than deducted immediately, and another is not keeping proper records of deductible expenses.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Cape Town.
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 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 Cape Town, 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 |
|---|---|---|
| Rode's Report on the SA Property Market (2024:1) | It's a long-running, survey-based South African property publication used widely by brokers, valuers, and institutions. | We used its Cape Town flat rentals tables to anchor studio, 1-bed, and 2-bed rent levels by sub-area. We then projected those levels forward to January 2026 using later rental growth indicators. |
| TPN Vacancy Survey Report (Q3 2024) | It's produced by a major tenant-screening and rental data provider and is one of the most-cited vacancy benchmarks in South Africa. | We used its national vacancy level and trend as a floor check for what a normal vacancy rate looks like. We combined it with Western Cape-specific evidence to estimate Cape Town's 2026 vacancy. |
| TPN Residential Rental Monitor (Q3 2025) | It summarizes a large, professionally compiled rental dataset and is updated frequently for market monitoring. | We used it to anchor late-2025 rental escalation levels and tenant stress signals. We used that growth context to move 2024 rent levels forward to January 2026. |
| Statistics South Africa CPI (P0141) | Stats SA is the official national statistics agency and CPI is the standard inflation reference for South Africa. | We used CPI as the reality check for what sustainable nominal rent growth can look like. We triangulated rent growth against CPI so our 2026 estimates stay plausible. |
| IMF DSBB Metadata for South Africa CPI | The IMF DSBB is a trusted international reference that verifies how official macro statistics are produced and maintained. | We used it as a cross-check that Stats SA CPI is the correct official series. We cite it to strengthen the official data chain behind our inflation assumptions. |
| Statistics South Africa General Household Survey 2024 | It's an official household survey that helps explain who rents and how households live in South Africa. | We used it to ground tenant profiles in real household patterns rather than anecdotes. We used it to keep our discussion of Cape Town renters realistic. |
| City of Cape Town Property Rates (2025/26) | It's the City's official tariff document used to calculate property rates bills for all Cape Town properties. | We used it to explain how property rates are calculated using the rate-in-the-Rand. We used it to build practical monthly landlord cost examples. |
| SARS Budget Tax Guide 2025/26 | SARS is South Africa's tax authority and this guide summarizes the applicable personal income tax brackets. | We used it to anchor how rental income is taxed for individuals in the 2025/26 tax year. We used it to keep the tax section concrete and numerically accurate. |
| Rode Western Cape Vacancy Discussion | It directly reports Western Cape vacancy using the same survey framework as the rent tables in Rode's Report. | We used its Western Cape vacancy reading to calibrate Cape Town as a tight market. We used it to justify faster leasing times and a low-vacancy 2026 estimate. |
| Rode Cape Town Sub-Area Rent Detail | It gives named suburb clusters with reported rent levels rather than vague city averages for Cape Town. | We used those named clusters to answer neighborhood questions with real places. We used them to create a Cape Town-specific premium versus mainstream rent map. |
| City of Cape Town Valuation Basis Note (GV2022) | It explains the legal valuation roll basis used for billing, which matters for real-world property costs. | We used it to explain why your rates bill might not match today's market value. We used it so landlords don't under-budget for municipal charges. |
| TPN Vacancy Survey Multi-Year Trend (2016-2024) | A long time series helps separate a real trend from a one-quarter blip in vacancy data. | We used the trend to avoid overreacting to a single quarter. We used it to set a sensible 2026 vacancy range rather than a single brittle number. |
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