Cape Town rental market lessons every landlord should know for 2026
Cape Town’s rental market remains strong, with high demand and rising yields. Landlords who prioritise retention and adapt to seasonal trends will thrive in 2026.
During the financial year ending February 2025, REMAX Living delivered exceptional growth and performance in Cape Town’s rental market, highlighting both the resilience and dynamic nature of the sector. The results provide valuable insights into how the market has evolved over the year and highlights several lessons that can help landlords better position themselves for success in the dynamic landscape of 2026.
Despite economic stagnation, South Africa’s rental sector displayed notable resilience. In the previous financial year, national tenancy levels grew by 3.4%, with the Western Cape outpacing this with a 4.1% increase. According to Susan Watts, Broker/Owner of REMAX Living, the agency exceeded both the national and local benchmarks with a reported 11.6% increase in active tendencies.
Reflecting on these insights, Adrian Goslett, CEO and regional director of REMAX Southern Africa, commented that “the region’s tenancy success highlights the ongoing opportunities for landlords to capitalise on sustained demand in the coming year.”
The strong interest in Cape Town has also had a notable impact on rental prices. In the financial year ending February 2025, the Western Cape’s average rental price sat at R11,454, substantially higher than the national average of R9,218. REMAX Living’s Premium Portfolio stood out in the market, nearly doubling the regional average at an impressive R22,356. “This growth indicates strong rent yield optimisation and higher-value mandates,” explains Watts.
Reflecting on these insights, Adrian Goslett, CEO and regional director of REMAX Southern Africa, commented that the premium placed on Cape Town rental properties reflects the region’s desirable lifestyle offering and the limited availability of rental stock. “Cape Town remains a market where demand consistently outpaces supply. The higher rental averages underscore the city’s continued appeal and the value tenants place on secure, lifestyle-driven living options,” he says.
Following the insights, property experts suggest the following tips for Western Cape landlords preparing for 2026:
- Prioritise tenant retention by maintaining consistent communication, addressing maintenance issues promptly, and ensuring that tenants feel valued and secure.
- Manage the winter seasons strategically by offering renewal incentives and maintaining strong service levels that can significantly reduce tenant turnover.
- Optimise opportunities during the summer months by ensuring that lease agreements clearly outline increased percentages during this high-demand period.
As Cape Town’s rental market continues to show strong and steady growth, landlords who remain adaptable and well-informed will be best positioned to thrive in the upcoming year.
Issued by Kesia Abrahams
