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Gauteng's rental market continues to boom


Gauteng's rental market continues to boom

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Despite economic fluctuations, the rental market in Gauteng remains strong, even with the repo rate at 8.25%, its highest level since May last year. In a region where economic conditions often drive market trends, renting is becoming the better option for most.

With more people choosing to rent instead of buy, the rental market in Gauteng is holding its own. The shift in consumer behavior has had a significant impact; let's look at some of the reasons for it.

Growth driven by interest rates

Owning a house has become increasingly challenging, with the current interest rate at 8.25%. Since November 2021, interest rates have risen steadily, totalling 475 basis points before stabilising last year.

The recent increase in interest rates has made it more challenging for folks to afford a home. Rising costs are making home loan repayments more expensive, making homeownership seem further away.

However, even with these challenges in the buying market, the rental scene in Gauteng remains resilient. More and more people are opting to rent instead of buying, driven by changes in lifestyle and financial circumstances. Professionals, in particular, are leaning towards renting for its flexibility, searching out better rental options in desirable neighbourhoods.

It's more economical to rent

Renting is more affordable in Gauteng than in other provinces. Despite the busy rental market, rental rates have remained stable in recent years. For example, in the last quarter of 2024, residential rents in Gauteng only increased by 3.6% year-on-year, lower than the December inflation rate of 5.1%. This increase was slightly lower than the 3.9% growth in the Western Cape and notably higher than the 1.4% in KwaZulu-Natal (KZN).

Also, more students and young workers choose to rent because it gives them more freedom and flexibility. They can explore job opportunities and lifestyle choices without taking on the long-term financial responsibilities of owning their property.

Best location to find rental properties

The most sought-after locations for rental properties are typically in areas like Sandton, Fourways, and Midrand. These areas are popular because they are home to many business and commercial hubs and bustling CBDs in Sandton and Fourways.

They offer a lavish lifestyle with access to amenities, recreational facilities, and top-notch services.Moreover, rental prices in these areas are generally more affordable than in Cape Town. Rental rates can vary depending on the suburb and type of property, but properties ranging from R7,000 to R12,000 per month are often in high demand.

Take the beautiful Sunninghill apartment, for example; it's only R7,000 monthly. It has an open floor plan that opens onto a patio; there is also one bedroom and one bathroom. The complex is safe, with a private garden, and it's the perfect property that most Gauteng tenants seek.

Sandton's affordable rental prices range from R10,000 to R15,000, particularly in areas like Sunninghill and Bryanston, which attract middle-class tenants who value amenities not typically found in freehold properties, such as proximity to work and the inclusion of an inverter for long-term benefits.

For example, take the ultra-desirable two-bedroom apartment on the top floor of the Riverbend Estate. This unit features two bedrooms, two bathrooms, and an inverter. The estate includes communal amenities such as a clubhouse with braai facilities, a pool, and a children's play area.

Find rental properties with us

You can find the rental home of your dreams with Blue Property Group. Search for an apartment or house in Sandton, Randburg, and Midrand in Gauteng. We also have listings for properties in other areas of South Africa.

Our listings feature a wide range of sizes and prices. View our properties in sought-after areas or reach out to our experienced property practitioners today to start your search.

Author Blue Property Group
Published 03 Apr 2024 / Views -
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