Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Stellenbosch's property market is included in our pack
Stellenbosch is one of the Western Cape's most attractive towns for property investors, thanks to its university, wine country lifestyle, and steady flow of renters.
But finding a property that actually delivers solid rental returns requires understanding where yields are strong and where they get squeezed by high prices.
In this article, we break down everything you need to know about rental yields in Stellenbosch, from neighborhood hotspots to the costs that eat into your net income.
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 Stellenbosch.
Insights
- Gross rental yields in Stellenbosch in 2026 typically range from 5.5% to 6.5%, which is lower than many South African metros because property prices here are pushed up by lifestyle demand and semigration from other provinces.
- The gap between the highest-yield and lowest-yield neighborhoods in Stellenbosch can be as wide as 3.7 percentage points, mainly driven by proximity to Stellenbosch University and how luxury-focused the area is.
- Sectional title levies are often the biggest hidden cost that drags down net yields in Stellenbosch apartments and townhouses, sometimes eating 1.5 to 2 percentage points off your gross return.
- Campus-adjacent areas like Die Boord and Uniepark can see vacancy rates as low as 1% to 3% when properties are priced correctly and leased on the right cycle aligned with the academic calendar.
- Studios and one-bedroom apartments near Stellenbosch University deliver the highest gross yields, often reaching 6.5% to 7.5%, because they maximize rent per rand of purchase price.
- Premium lifestyle estates like De Zalze and Paradyskloof tend to yield only 3.8% to 5% gross, as buyers pay for prestige and space that renters will not pay proportionally more for.
- The R44/N1 interchange upgrade and Adam Tas Corridor densification plans could boost rents in corridor-adjacent zones by improving commute times and adding new amenities over the next few years.
- Full-service property management in Stellenbosch costs around 8% to 12% of collected rent, plus a letting fee of roughly one month's rent for each new tenant placement.
What are the rental yields in Stellenbosch as of 2026?
What's the average gross rental yield in Stellenbosch as of 2026?
As of early 2026, the average gross rental yield in Stellenbosch sits at around 6%, which reflects a balance between strong renter demand and the town's relatively high property prices.
Most typical residential properties in Stellenbosch fall within a gross yield range of 5.5% to 6.5%, though you can find outliers on both ends depending on property type and location.
This puts Stellenbosch slightly below the national average for South African metros, mainly because property prices here are inflated by lifestyle buyers and semigration demand from other provinces.
The single biggest factor shaping gross yields in Stellenbosch right now is the structural undersupply of rental housing near the university, which keeps rents firm in the right micro-areas even as purchase prices remain elevated.
What's the average net rental yield in Stellenbosch as of 2026?
As of early 2026, the average net rental yield in Stellenbosch is approximately 4.2%, though this can range from about 3.6% to 4.8% depending on your property type and cost structure.
The typical gap between gross and net yields in Stellenbosch is around 1.5 to 2 percentage points, which accounts for all the ongoing expenses landlords must cover.
For apartments and townhouses in Stellenbosch, sectional title levies are usually the single largest expense that eats into your gross yield, often more impactful than municipal rates or management fees.
Most standard investment properties in Stellenbosch land somewhere in the 3.6% to 4.8% net yield range because of the combination of levies, municipal charges, insurance, maintenance, and management costs that are unavoidable in this market.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Stellenbosch.
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 Stellenbosch in 2026?
In Stellenbosch in 2026, a gross rental yield of around 6% is generally considered good by local investors, as it indicates you are getting solid rent relative to the premium you paid for the property.
The threshold that separates average-performing properties from high-performing ones in Stellenbosch is roughly 7% gross, though achieving this usually means accepting trade-offs like older buildings, student tenants with higher turnover, or locations slightly further from the most desirable nodes.
How much do yields vary by neighborhood in Stellenbosch as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Stellenbosch is about 3.7 percentage points, ranging from roughly 3.8% to 7.5%.
The highest rental yields in Stellenbosch typically come from neighborhoods close to the university with moderately priced stock, such as Stellenbosch Central, Die Boord, Uniepark, and Dennesig, where strong student and young professional demand supports rents.
The lowest rental yields in Stellenbosch are found in premium lifestyle areas where buyers pay for space and prestige, such as Mostertsdrift, Paradyskloof, Welgevonden Estate, and De Zalze Winelands Golf Estate.
The main reason yields vary so much across Stellenbosch neighborhoods is the disconnect between what buyers will pay for lifestyle and security versus what renters are willing to pay monthly, which compresses yields in premium areas while keeping them stronger near campus.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Stellenbosch.
How much do yields vary by property type in Stellenbosch as of 2026?
As of early 2026, gross rental yields in Stellenbosch range from about 3.8% for premium houses up to 7.5% for well-located studios and one-bedroom apartments.
Studios and one-bedroom apartments near the university currently deliver the highest average gross yields in Stellenbosch, typically between 6.5% and 7.5%, because they maximize rent per rand of purchase price.
Premium free-standing houses and properties in lifestyle estates deliver the lowest average gross yields in Stellenbosch, usually between 3.8% and 5%, because buyers pay a premium for space and prestige that renters do not value proportionally.
The key reason yields differ between property types in Stellenbosch is that smaller units tap into the deepest renter pool of students, singles, and young professionals, while large luxury homes attract lifestyle buyers who bid up prices beyond what rental income can justify.
By the way, you might want to read the following:
What's the typical vacancy rate in Stellenbosch as of 2026?
As of early 2026, the average residential vacancy rate in Stellenbosch is estimated at around 3% to 5%, which is tighter than the national average thanks to the university's constant demand.
Vacancy rates in Stellenbosch vary significantly by neighborhood, ranging from as low as 1% to 3% in campus-adjacent areas like Uniepark and Die Boord, up to 4% to 7% in premium areas where properties may be overpriced or poorly matched to renter needs.
The main factor driving vacancy rates in Stellenbosch is how well-matched a property is to the dominant renter profile in its area, with correctly priced units near campus filling quickly while luxury homes in lifestyle estates take longer.
Stellenbosch's vacancy rate sits below the national mid-5% average measured by TPN, reflecting the structural undersupply of rental housing in a town with strong and consistent renter demand from students and young professionals.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Stellenbosch.
What's the rent-to-price ratio in Stellenbosch as of 2026?
As of early 2026, the average rent-to-price ratio in Stellenbosch is approximately 0.46% to 0.54% per month, which means a property bought for R2.5 million would typically need to rent for around R12,000 to R14,000 monthly to hit this range.
A rent-to-price ratio of around 0.5% per month is generally considered favorable for buy-to-let investors in Stellenbosch, as this translates directly to about 6% gross annual yield before expenses.
Stellenbosch's rent-to-price ratio is somewhat compressed compared to cheaper South African metros, reflecting the premium buyers pay for the town's lifestyle appeal, university presence, and Western Cape location.
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 Stellenbosch give the best yields as of 2026?
Where are the highest-yield areas in Stellenbosch as of 2026?
As of early 2026, the top highest-yield neighborhoods in Stellenbosch are Stellenbosch Central, Die Boord, and Uniepark, with Dennesig and parts of Jamestown also performing well when entry prices are reasonable.
In these top-performing areas like Stellenbosch Central, Die Boord, and Uniepark, gross rental yields typically range from 6% to 7.5%, with the best results coming from smaller units that match student and young professional budgets.
The main characteristic these high-yield areas share is their proximity to Stellenbosch University and the town center, which creates constant renter demand from students, staff, and young professionals who prioritize walkability and convenience over space.
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 Stellenbosch.
Where are the lowest-yield areas in Stellenbosch as of 2026?
As of early 2026, the lowest-yield neighborhoods in Stellenbosch are Mostertsdrift, Paradyskloof, and De Zalze Winelands Golf Estate, along with Welgevonden Estate and premium pockets near Technopark.
In these low-yield areas, gross rental yields typically fall between 3.8% and 5%, which reflects the premium buyers pay for lifestyle, security, and space.
The main reason yields are compressed in areas like Paradyskloof and De Zalze is that property prices are driven up by owner-occupier demand and lifestyle appeal, while renters are not willing to pay proportionally higher monthly rents for these extras.
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 Stellenbosch.
Which areas have the lowest vacancy in Stellenbosch as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Stellenbosch are Stellenbosch Central, Uniepark, Die Boord, and Dennesig, all of which benefit from their proximity to the university.
In these low-vacancy areas, vacancy rates typically range from just 1% to 3% when properties are correctly priced and leased in alignment with the academic calendar.
The main demand driver keeping vacancy low in areas like Uniepark and Die Boord is the constant flow of students and university staff looking for convenient, affordable accommodation within walking distance of campus.
The trade-off investors typically face when targeting these low-vacancy areas is higher tenant turnover, as student leases often run on annual cycles and require more frequent re-letting and property preparation between tenants.
Which areas have the most renter demand in Stellenbosch right now?
The neighborhoods currently experiencing the strongest renter demand in Stellenbosch are Stellenbosch Central, Die Boord, and Uniepark, with Technopark and Jamestown also seeing solid demand from young professionals.
The renter profile driving most of the demand in these areas is university students and young professionals, who prioritize secure, affordable, and conveniently located units over large spaces or luxury finishes.
In high-demand neighborhoods like Stellenbosch Central and Die Boord, correctly priced rental listings typically get filled within one to two weeks, especially for smaller units at the start of the academic year.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Stellenbosch.
Which upcoming projects could boost rents and rental yields in Stellenbosch as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents in Stellenbosch are the R44/N1 interchange upgrade, the Adam Tas Corridor densification initiative, and related transport and mixed-use developments along the main arterial routes.
The neighborhoods most likely to benefit from these projects are zones along the Adam Tas and R44 corridors, Technopark-adjacent areas, and approaches into central Stellenbosch, where improved accessibility could make properties more attractive to renters.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in the most directly affected areas over several years, though the impact will be gradual as infrastructure benefits take time to reshape renter preferences.
You'll find our latest property market analysis about Stellenbosch here.
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What property type should I buy for renting in Stellenbosch as of 2026?
Between studios and larger units in Stellenbosch, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in Stellenbosch in terms of both rental yield and occupancy, particularly when located near the university or town center.
Studios in well-located Stellenbosch areas typically achieve gross yields of 6.5% to 7.5% (around R8,000 to R12,000 per month, or approximately $430 to $650 USD, €400 to €600 EUR), while larger three-bedroom units often yield only 4.5% to 5.5%.
The main factor explaining why smaller units outperform in Stellenbosch is that the dominant renter pool of students and young professionals prioritizes affordability and location over space, making compact units easier to fill at strong rents relative to their purchase price.
One scenario where a larger unit might be the better investment choice is if you target professional families or staff housing near Technopark, where a three-bedroom townhouse can command stable, long-term leases with lower turnover costs.
What property types are in most demand in Stellenbosch as of 2026?
As of early 2026, the most in-demand property type in Stellenbosch is secure apartments with one or two bedrooms, which attract students, young professionals, and singles looking for convenient, affordable accommodation.
The top three property types ranked by current tenant demand in Stellenbosch are one-to-two bedroom secure apartments, two-to-three bedroom townhouses in security complexes, and three-bedroom family houses in established suburbs.
The primary trend driving this demand pattern in Stellenbosch is the combination of university enrollment, semigration from other provinces, and young professionals seeking secure lock-up-and-go living close to work and amenities.
One property type currently underperforming in demand in Stellenbosch is large luxury houses in remote lifestyle estates, as the rental pool for expensive, high-maintenance properties remains limited and turnover costs are significant.
What unit size has the best yield per m² in Stellenbosch as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Stellenbosch is compact studios and one-bedroom apartments of around 25 to 50 square meters.
For this optimal unit size in Stellenbosch, the typical gross rental yield per square meter runs between R180 and R260 per month (approximately $10 to $14 USD, €9 to €13 EUR), which translates to the highest return on invested capital per square meter.
The main reason smaller units have better yield per square meter than larger properties in Stellenbosch is that rent does not scale linearly with size, so landlords of compact apartments capture more rent per rand of purchase price than those with large family homes.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Stellenbosch.
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 Stellenbosch as of 2026?
What are typical property taxes and recurring local fees in Stellenbosch as of 2026?
As of early 2026, the annual property tax (municipal rates) for a typical rental apartment in Stellenbosch is around 0.44% of the municipal valuation, which works out to roughly R11,000 per year for a R2.5 million property (approximately $600 USD, €550 EUR).
Other recurring local fees landlords must budget for in Stellenbosch include refuse removal and sewerage charges, which typically add another R300 to R500 per month (around $16 to $27 USD, €15 to €25 EUR) depending on the property's service level.
These taxes and fees typically represent about 8% to 12% of gross rental income in Stellenbosch, though the percentage can be higher for lower-rent units where fixed charges bite harder.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Stellenbosch.
What insurance, maintenance, and annual repair costs should landlords budget in Stellenbosch right now?
The estimated annual landlord insurance cost for a typical rental property in Stellenbosch ranges from about 0.15% to 0.30% of property value, which works out to roughly R3,750 to R7,500 per year for a R2.5 million property (approximately $200 to $400 USD, €190 to €380 EUR).
Landlords in Stellenbosch should budget around 5% to 12% of annual rental income for maintenance and repairs, with apartments typically on the lower end and free-standing houses requiring more.
The type of repair expense that most commonly catches landlords off guard in Stellenbosch is plumbing issues, particularly in older properties with aging pipes or in areas with hard water that causes buildup and blockages.
Combined, landlords in Stellenbosch should realistically budget R15,000 to R30,000 per year for insurance, maintenance, and repairs on a typical rental property (approximately $800 to $1,600 USD, €750 to €1,500 EUR), though this varies significantly with property age and type.
Which utilities do landlords typically pay, and what do they cost in Stellenbosch right now?
In Stellenbosch, landlords are typically expected to cover refuse removal and sewerage as part of the rental arrangement, while electricity (often prepaid) and water consumption are usually passed through to tenants.
The estimated monthly cost for landlord-paid utilities in a typical Stellenbosch rental unit is around R350 to R600 per month (approximately $19 to $32 USD, €18 to €30 EUR), primarily covering the fixed service charges that cannot be metered to tenants.
What does full-service property management cost, including leasing, in Stellenbosch as of 2026?
As of early 2026, full-service property management in Stellenbosch typically costs between 8% and 12% of collected rent per month, plus VAT in many cases, which works out to roughly R800 to R1,500 monthly on a R12,000 rent (approximately $43 to $80 USD, €40 to €75 EUR).
On top of ongoing management, the typical leasing or tenant-placement fee in Stellenbosch is around one month's rent per new tenant, with some agencies also charging smaller renewal or administrative fees.
What's a realistic vacancy buffer in Stellenbosch as of 2026?
As of early 2026, landlords in Stellenbosch should set aside around 4% to 8% of annual rental income as a vacancy buffer, depending on whether they target stable professional tenants or higher-turnover student renters.
In practice, this translates to about two to four weeks of vacancy per year for well-located, correctly priced properties in Stellenbosch, though student-focused strategies may see slightly more turnover at the start of each academic year.
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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 Stellenbosch, 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 |
|---|---|---|
| Stellenbosch Municipality Tariff Book 2025/26 | This is the municipality's official schedule of what residents are charged for rates and services. | We used it to price the non-negotiable holding costs like municipal rates and typical service charges. We also used it to keep our net-yield math grounded in Stellenbosch's actual 2025/26 tariff reality. |
| PayProp Rental Index (Q3 2025) | PayProp is a major processor of residential rental transactions, so its data is based on real payments rather than just asking prices. | We used it to anchor the national rent level and rent growth environment that Stellenbosch sits within. We then localized to Stellenbosch with listing-based rent and price evidence. |
| PayProp Rental Index (Q1 2025 PDF) | This document explains PayProp's data approach and gives deeper breakdowns than a blog summary. | We used it to cross-check PayProp's methodology so we don't over-rely on one metric. We treated it as a rent-market backbone while computing Stellenbosch yields from local rent-to-price ratios. |
| TPN Residential Vacancy Survey (Q3 2024) | TPN runs long-standing national vacancy surveying that is widely used in South African property circles. | We used it to anchor the typical vacancy baseline in South Africa. We then adjusted for Stellenbosch's unique demand drivers like the university and semigration to estimate a local vacancy range. |
| TPN Residential Rental Monitor (Q2 2024) | This is a formal rental market monitor from a large proptech and data provider. | We used it mainly for directional insight by property type and to sanity-check our units-versus-houses yield gap. We did not copy its national yield into Stellenbosch because Stellenbosch pricing is unusually high. |
| FNB Property Barometer (Nov 2025) | This is produced by a major bank's economics team and explains index methodology clearly. | We used it to frame early-2026 conditions including interest-rate direction, price momentum, and supply constraints. We used that context when defining what a good yield looks like relative to borrowing costs and risk. |
| Statistics South Africa CPI Publication | Stats SA is the official statistics agency for South Africa. | We used it as a reality-check on inflation pressures affecting rents and operating costs. We used it to keep our rent-growth assumptions in normal macro range when projecting into early 2026. |
| Property24 Stellenbosch Market Snapshot | Property24 is South Africa's largest property portal and a widely referenced market-data source. | We used it to anchor local price levels and the luxury skew that can compress yields in Stellenbosch. We then computed yields by pairing local price levels with local rent levels from comparable listings. |
| MyProperty Property Index Hub | This is a curated index pointing to the original PDFs from FNB, PayProp, Stats SA, TPN, and Lightstone. | We used it as a source router to pull original documents rather than relying on blog summaries. We used it to triangulate across multiple reputable publishers quickly and transparently. |
| Stellenbosch Student Accommodation Article (Property24) | This article cites an IFC (World Bank Group) feasibility study on bed shortages, an unusually credible reference. | We used it to justify why Stellenbosch can have structurally stronger renter demand than a typical town. We used it as supporting evidence when tightening our vacancy assumptions near campus nodes. |
| Stellenbosch Monitor (Adam Tas Corridor) | This is a local publication covering a municipality-identified corridor concept that affects where supply and demand may shift. | We used it only for what could change in terms of pipeline, densification, and transport linkage, not for any hard numbers. We used it to point investors to micro-areas where new supply and better connectivity could lift rents over time. |
| R44/N1 Interchange Upgrade (Environmental Authorisation) | This is a formal project document trail tied to a regulated approvals process. | We used it to support claims about real projects that can change accessibility, which often matters for rent. We used it cautiously since infrastructure boosts are usually gradual, but they can reshape renter preference over a few years. |
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