What rental yield can you expect in South Africa? (2026)

This article breaks down rental yield numbers for South Africa's residential property market, based on the freshest data available.

We cover gross and net yields, vacancy rates, neighborhood variations, and the costs that eat into your returns.

We constantly update this blog post to reflect the latest market conditions.

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 South Africa.

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in South Africa. If you’d like to learn more about us, you can check our presentation page.

What are the rental yields in South Africa as of 2026?

What's the average gross rental yield in South Africa as of 2026?

As of early 2026, the average gross rental yield for residential property in South Africa sits at around 7%, covering everything from apartments to freestanding houses.

Most typical South African rental properties fall within a gross yield range of 6% to 8%, depending on location, property type, and purchase price.

This 7% national average holds up well against other emerging markets, reflecting solid rental demand even as property prices have grown modestly.

The biggest factor influencing gross rental yields in South Africa right now is the gap between property price growth and rent growth, with prices in premium areas outpacing rents and compressing yields.

What's the average net rental yield in South Africa as of 2026?

As of early 2026, the average net rental yield for residential property in South Africa comes in at around 4.8%, once you subtract all real-world costs.

The typical gap between gross and net yields in South Africa runs between 25% and 35% of gross rent, a meaningful haircut many first-time investors underestimate.

Municipal rates and service charges most significantly reduce gross yield to net yield in South Africa, varying substantially by city and property valuation.

Most standard investment properties deliver net yields of 4% to 5.8%, with the lower end reflecting higher-cost metros like Cape Town and the upper end possible in areas with lower charges and strong occupancy.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in South Africa.

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 South Africa in 2026?

In South Africa's residential market, local investors generally consider a gross rental yield of 8% or higher to be genuinely good, while anything above 7% is seen as healthy.

The threshold separating average from high-performing properties typically sits at around 7.5% gross, with properties below this often found in premium-priced areas where lifestyle value outweighs cash flow.

How much do yields vary by neighborhood in South Africa as of 2026?

As of early 2026, the spread in gross rental yields between highest and lowest-yield neighborhoods in South Africa can reach 3 to 6 percentage points.

Neighborhoods delivering the highest yields are student and professional hubs like Hatfield and Sunnyside in Pretoria, Braamfontein in Johannesburg, and Bellville or Parow in Cape Town, where prices remain accessible but demand stays strong.

The lowest yields are found in premium lifestyle areas like Clifton, Camps Bay, and Constantia in Cape Town, Sandhurst and Houghton in Johannesburg, and prime Umhlanga in Durban.

Yields vary dramatically because property prices can run away faster than rents in desirable areas, compressing yields even when rental demand is healthy.

By the way, we've written a blog article detailing what are the current best areas to invest in property in South Africa.

How much do yields vary by property type in South Africa as of 2026?

As of early 2026, gross rental yields across different property types in South Africa range from around 5% for large luxury homes up to 9% or more for well-located studios.

Studios and one-bedroom sectional title apartments deliver the highest average gross yield, commanding strong rent per square meter and attracting a deep pool of single renters and young professionals.

Large freestanding houses and luxury properties deliver the lowest yields, as high purchase prices rarely translate into proportionally higher rents.

Yields differ between property types because smaller, more affordable units benefit from concentrated renter demand in the mid-market segment where vacancies are lowest.

By the way, you might want to read the following:

What's the typical vacancy rate in South Africa as of 2026?

As of early 2026, the average residential vacancy rate in South Africa sits at around 5.5%, meaning most landlords can expect roughly one month empty every 18 to 24 months.

Vacancy rates across different neighborhoods range from under 4% in high-demand hubs to over 8% in oversupplied or poorly located areas.

The main factor driving vacancies is rental price point, with mid-market properties (R5,000 to R12,000 monthly) experiencing the strongest demand and fastest re-letting.

South Africa's current vacancy rate around mid-5% is relatively contained compared to COVID-era peaks and sits within a healthy range for a developing market.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in South Africa.

What's the rent-to-price ratio in South Africa as of 2026?

As of early 2026, the average rent-to-price ratio in South Africa works out to around 0.55% to 0.6% monthly, translating directly to the 6.5% to 7.5% annual gross yield range.

A ratio above 0.6% monthly (7.2% annually) is generally considered favorable for buy-to-let investors in South Africa, and since this equals gross yield, higher is always better for cash flow.

South Africa's rent-to-price ratio compares favorably to many African markets and emerging market peers, reflecting a property market where prices haven't completely outrun rental fundamentals.

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 South Africa give the best yields as of 2026?

Where are the highest-yield areas in South Africa as of 2026?

As of early 2026, top highest-yield neighborhoods include Hatfield and Sunnyside in Pretoria, Braamfontein and Randburg in Johannesburg, and Bellville and Parow in Cape Town.

In these areas like Hatfield, Braamfontein, and Bellville, investors can expect gross rental yields of 8% to 10%, assuming sensible purchase prices.

These high-yield South African neighborhoods share proximity to universities, hospitals, or major employment nodes, combined with accessible purchase prices.

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 South Africa.

Where are the lowest-yield areas in South Africa as of 2026?

As of early 2026, lowest-yield neighborhoods are premium lifestyle pockets like Clifton, Camps Bay, and Constantia in Cape Town, Sandhurst and Houghton in Johannesburg, and prime Umhlanga Rocks in Durban.

In these low-yield areas, gross yields typically fall to 3.5% to 5%, reflecting significant premiums buyers pay for ocean views, security, and scarcity.

Yields are compressed in these neighborhoods because property prices are driven by lifestyle premiums that far outpace what tenants will pay in rent.

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 South Africa.

Which areas have the lowest vacancy in South Africa as of 2026?

As of early 2026, neighborhoods with lowest vacancy rates include Hatfield and Arcadia in Pretoria, Braamfontein and Rosebank edges in Johannesburg, and Glenwood and Berea in Durban.

In these low-vacancy areas, vacancy rates often drop below 3% to 4%, with properties re-letting within days or weeks.

The main demand driver is concentration of students, young professionals, and hospital workers needing convenient, affordable housing close to work or study.

The trade-off investors face in these areas is that strong occupancy often comes with higher turnover, more intensive management, and sometimes older buildings requiring more maintenance.

Which areas have the most renter demand in South Africa right now?

Neighborhoods with strongest renter demand include Table View and Bellville in Cape Town, Fourways and Midrand in Johannesburg, and Umhlanga Ridge and Glenwood in Durban.

The renter profile driving demand is young to mid-career professionals seeking secure, well-located housing with good transport links and proximity to commercial hubs.

In these high-demand neighborhoods, well-priced properties typically get filled within one to three weeks, with bidding wars common for the best units.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in South Africa.

Which upcoming projects could boost rents and rental yields in South Africa as of 2026?

As of early 2026, top projects expected to boost rents are Cape Town's Foreshore Freeway Precinct redevelopment, Durban's Cornubia mixed-use development, and continued Waterfall precinct investment in Midrand.

Neighborhoods most likely to benefit include Cape Town CBD and Woodstock, Cornubia and Mount Edgecombe in Durban, and Waterfall and Kyalami in Johannesburg.

Once these projects reach completion, investors in surrounding areas might realistically expect rent increases of 5% to 15% above the national average.

You'll find our latest property market analysis about South Africa here.

What property type should I buy for renting in South Africa as of 2026?

Between studios and larger units in South Africa, which performs best in 2026?

As of early 2026, studios and one-bedroom apartments in South Africa generally outperform larger units in gross yield, while two-bedroom units win on occupancy stability and lower turnover.

Studios typically deliver gross yields of 8% to 10% (R7,500 to R9,000 monthly, roughly $400 to $480 USD / 370 to 450 EUR), while two-bedrooms yield closer to 6% to 8%.

Smaller units outperform because they command higher rent per square meter and tap into the deep pool of single renters prioritizing location over space.

However, two-bedroom units become the better choice when targeting small families or couples who stay longer, reducing turnover costs and management intensity.

What property types are in most demand in South Africa as of 2026?

As of early 2026, the most in-demand property type in South Africa is the one to two-bedroom secure apartment in a sectional title complex, offering the lock-up-and-go lifestyle renters prioritize.

Top three property types by tenant demand are secure apartments near jobs and transport, townhouses in security complexes for small families, and entry-level houses in good school zones.

The primary trend driving this demand is high interest rates making homeownership harder, pushing young professionals toward safe, convenient, and affordable rentals.

Large luxury homes and sprawling properties in less secure areas are underperforming and likely to remain so, as the tenant pool for expensive, high-maintenance properties is too small.

What unit size has the best yield per m² in South Africa as of 2026?

As of early 2026, the unit size delivering best gross rental yield per square meter in South Africa is typically 25 to 50 square meters, covering studios and compact one-bedrooms.

For this optimal size, gross yields per square meter can reach R180 to R220 monthly (around $9.50 to $11.70 USD / 8.80 to 10.80 EUR per m²), depending on location.

Smaller units achieve higher yield per square meter because tenants pay for function and location rather than extra space, while fixed costs scale less than proportionally with size.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in South Africa.

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 South Africa as of 2026?

What are typical property taxes and recurring local fees in South Africa as of 2026?

As of early 2026, annual property tax (municipal rates) for a typical rental apartment in South Africa ranges from R8,000 to R20,000 (roughly $425 to $1,060 USD / 390 to 980 EUR), depending on municipality and valuation.

Beyond rates, landlords must budget for refuse, sewerage, and for sectional title, monthly levies, adding another R12,000 to R36,000 yearly (around $640 to $1,910 USD / 590 to 1,770 EUR).

Altogether, these taxes and fees typically represent 15% to 25% of gross rental income, significantly impacting what you actually take home.

By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in South Africa.

What insurance, maintenance, and annual repair costs should landlords budget in South Africa right now?

Landlord insurance for a typical rental property in South Africa costs R3,000 to R12,000 yearly (around $160 to $640 USD / 150 to 590 EUR), with higher premiums for coastal properties.

The recommended annual maintenance budget is 5% to 10% of annual rent, roughly R5,400 to R10,800 yearly (around $290 to $575 USD / 265 to 530 EUR) for a R9,000 monthly property.

The expense that most commonly catches landlords off guard is geyser replacement and electrical issues from load-shedding-era appliance wear, costing R8,000 to R15,000 each.

Total, landlords should budget R10,000 to R25,000 yearly (roughly $530 to $1,330 USD / 490 to 1,230 EUR) for insurance, maintenance, and repairs combined.

Which utilities do landlords typically pay, and what do they cost in South Africa right now?

In most South African long-term rentals, tenants pay electricity and water (often prepaid), while landlords cover municipal rates, refuse, and sometimes baseline service fees.

During vacancy or if utilities are included, electricity alone can cost R800 to R2,000 monthly (around $42 to $106 USD / 39 to 98 EUR), with costs rising due to recent tariff increases.

What does full-service property management cost, including leasing, in South Africa as of 2026?

As of early 2026, full-service property management in South Africa costs 8% to 12% of monthly rent, roughly R720 to R1,080 monthly (around $38 to $57 USD / 35 to 53 EUR) for a R9,000 property.

On top of management, tenant placement fees typically run around one month's rent, meaning an extra R9,000 or so (around $480 USD / 440 EUR) each time a new tenant moves in.

What's a realistic vacancy buffer in South Africa as of 2026?

As of early 2026, landlords in South Africa should set aside 5% to 8% of annual rental income as a vacancy buffer, enough to cover roughly one month of lost rent yearly.

In practice, well-priced mid-market properties experience around 2 to 4 weeks of vacancy every 18 to 24 months, though this stretches longer for luxury or poorly located properties.

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 South Africa, 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
Statistics South Africa - RPPI Methods	The national statistics office explaining South Africa's official property price index methodology.	We anchored price analysis in an official framework. We sanity-checked private price series against this methodology.
Stats SA - RPPI Statistical Release	The official publication page for South Africa's residential property price index.	We confirmed the RPPI is an ongoing official series. We treat it as a credibility anchor for price trends.
South African Reserve Bank	The central bank's official portal for macro and financial data.	We framed the macro backdrop driving rent affordability and buyer demand. We cross-checked market narratives.
PayProp - State of the Rental Industry	PayProp processes large rental transaction volumes and publishes survey-backed market reporting.	We grounded rent levels and tenant dynamics discussions. We triangulated vacancy commentary with other datasets.
PayProp - Rental Agency Fees	Cites PayProp's survey and explains South African rental market fee realities.	We supported typical admin and lease fee assumptions. We informed property management cost estimates.
Property24 - Key Fees Article	A major South African property portal citing PayProp survey-based numbers.	We cross-checked typical fees seen in real leases. We used it where it clearly attributes to PayProp data.
MRI TPN - Vacancy Survey Q3 2024	A long-running, widely referenced rental market dataset published as a formal report.	We anchored national vacancy expectations. We used rent-band insights to explain demand patterns.
MRI TPN - Vacancy Survey Landing Page	The publisher's page describing the report and key findings.	We verified headline vacancy numbers. We confirmed the rent-band sweet spot for low vacancy.
BetterBond - Property Brief June 2025	A major home loan originator publishing consistent, data-heavy market briefs.	We anchored average purchase price benchmarks. We paired these with rent data to estimate yields.
Eskom - 2025/2026 Price Increase	The utility's official page reflecting regulator-approved tariff changes.	We quantified operating cost pressure on landlords. We justified a higher utilities buffer in estimates.
NERSA - Tariff Decision	The energy regulator's official published decision document.	We cross-checked Eskom's summary. We treat it as the source of truth on tariff adjustments.
City of Cape Town - Property Rates	An official metro document showing how property rates are calculated.	We illustrated how municipal rates work. We use it as a template for explaining recurring fees.
City of Johannesburg - Rates Policy	An official metro policy document governing rates and rebates.	We validated how rates are set in a major metro. We explained why net yield varies by municipality.
eThekwini - Property Rates Policy	The official rates policy for the Durban metro area.	We confirmed rates policy structure is consistent but tariffs differ. We justified ranges for recurring costs.
City of Cape Town - Foreshore Statement	An official city statement about a major urban redevelopment initiative.	We supported upcoming projects that could boost rents. We showed how transport upgrades can lift rents.
Housing Development Agency - Cornubia	A government entity's formal synopsis of a major mixed-income development.	We used it as a credible example of supply and demand shifts. We explained why yields can move locally.
Reuters - Precinct Investment	A globally recognized news organization reporting on South African property investment.	We documented demand in mixed-use precincts like Waterfall. We explained how investments shift rental dynamics.