Investor sentiment in South Africa is shifting positively as interest rates have recently decreased, and inflation appears to be stabilizing. This has led many South Africans to consider real estate as a viable investment option. Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, notes that national rental vacancies are at their lowest in eight years, making it an opportune time to enter the rental market. The TPN Vacancy Survey indicates that average residential rental vacancies for the first three quarters of 2024 were 5.4%, marking a significant decrease since the survey began in 2016.

Key Property Markets for Investment in 2025

Western Cape

  • Current Status: The province has the lowest rental vacancies in South Africa, with Cape Town leading at 1.51%, significantly below the national average.
  • Investment Opportunities: High-demand areas include the Atlantic Seaboard, City Bowl, and Southern Suburbs. Luxury apartments and short-term rentals are particularly lucrative due to strong tourism and corporate travel.

Gauteng

  • Current Status: As South Africa's economic hub, Gauteng has a diverse property market with a notable demand for affordable housing.
  • Investment Opportunities: Suburbs like Sandton, Rosebank, and Midrand are experiencing stable growth. Affordable housing in areas such as Roodepoort and Randburg is also in high demand.

Midrand

  • Current Status: Positioned between Johannesburg and Pretoria, Midrand is rapidly developing.
  • Investment Opportunities: New developments near Waterfall City are popular among young professionals. Both residential and commercial properties are seeing significant interest.

Pretoria

  • Current Status: Known for its stability due to government presence and a large student population.
  • Investment Opportunities: Areas near universities like Hatfield are ideal for student housing and multi-unit rentals.

Durban’s North Coast

  • Current Status: Attracting attention due to its scenic coastline and warm climate.
  • Investment Opportunities: Umhlanga and Ballito are prime areas for holiday rentals and beachfront properties, appealing to both local and foreign investors.

The Garden Route

  • Current Status: Gaining popularity among retirees and remote workers seeking a relaxed lifestyle.
  • Investment Opportunities: Towns like George, Knysna, and Plettenberg Bay are seeing increased property values driven by lifestyle buyers.

Eastern Cape

  • Current Status: Offers affordability and potential growth, especially in Gqeberha (Port Elizabeth) and East London.
  • Investment Opportunities: Multi-family homes and townhouses are attractive to first-time buyers looking for cost-effective options.