Are rental properties still a safe investment in 2026

In 2026, rental property remains a powerful way to build long-term wealth, even as the market continues to evolve.

Rental property has long been regarded as one of the most reliable ways to build wealth. But with shifting economic conditions and changing tenant expectations, many investors are asking an important question: are rental properties still a safe investment? REMAX Southern Africa believes that, with the right strategy and careful planning, buy-to-let remains a strong and resilient option in today’s property market.

Dependable long-term investment

According to Adrian Goslett, CEO and regional director of REMAX Southern Africa, rental property continues to be one of the most dependable long-term investments available to South Africans.

“Even in a changing economic environment, well-located rental homes can deliver consistent income, strong demand, and valuable capital growth over time. Properties in established or high-growth areas tend to attract stable tenants and experience lower vacancy rates, helping ensure reliable monthly returns.”

“As these areas develop and demand increases, owners benefit from long-term appreciation in their property’s value. When investors focus on the right fundamentals, such as location, affordability, and tenant appeal, rental property can remain both resilient and rewarding. Even during periods of economic uncertainty,” he adds.

Property figures

While interest rates, inflation, and the cost of living remain important considerations for investors. Rental demand across many parts of the country continues to show encouraging momentum. Figures from the latest PayProp Rental Index reflect this upward trend.

Average national rental growth reached 5.6% in the first quarter of 2025. Marking the strongest quarterly increase since the third quarter of 2017 and pushing the average rent to R9 132. The second quarter showed continued rental growth. With average national rent rising to around R9 218, and growth remaining above inflation at approximately 5.0%. Signalling positive real-term performance.

By the third quarter of 2025, average rents had increased further to roughly R9 286. With year-on-year growth of 4.9%. This sustained performance reflects ongoing tenant demand. And the ability of rental property to deliver returns that keep pace with, and in some cases exceed, inflation.

Advantages of rental property

One of the key advantages of rental property is its dual benefit. The opportunity to generate monthly income while building equity in a tangible asset. Unlike many other investment vehicles, property offers both a physical store of value and the potential for steady, long-term returns when managed effectively. However, Goslett notes that success in the rental market depends on careful research and disciplined financial planning.

“Location remains the single most important factor. As properties situated near employment hubs, transport routes, and lifestyle amenities are more likely to attract reliable tenants and achieve sustainable rental escalation,” he says.

Success in the rental market

Investors are encouraged to consider the full cost of ownership. Including maintenance, insurance, municipal charges and the possibility of vacancy periods, to ensure realistic return expectations.

Changing tenant expectations are also shaping the market in 2026. With renters placing increased value on security, energy efficiency, modern finishes and access to reliable infrastructure. Properties that meet these expectations are more likely to retain tenants, reduce turnover and deliver stronger long-term returns.

“Property has always rewarded patience and informed decision-making,” Goslett adds. “For investors who approach the market with realistic expectations, sound financial discipline and a long-term outlook. Rental real estate in 2026 can still offer both security and opportunity.” Despite broader economic pressures, the fundamentals underpinning the rental market remain intact. Supported by steady rental growth and sustained demand. Buy-to-let property continues to provide South African investors with a balanced combination of stability, income potential and long-term value creation.

Issued by Kesia Abrahams