Gauteng rental market booms as semigrants return for affordable living
Gauteng’s rental market — the largest in South Africa — is gaining momentum as returning semigrants and new arrivals seek affordable living options in the country’s economic heartland.
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With nearly 38% of households renting, and demand rising faster than supply, the region is fast becoming a hotspot for both tenants and savvy property investors.
This growth is being fuelled in part by a reported reverse semigration trend, with many who had previously moved to the Cape now returning to Gauteng. According to the Wise Move 2025 Migration Report, an estimated 25% of those who left for the Cape have since headed back.
Much of this shift is driven by Gauteng’s comparatively lower cost of living and greater economic opportunities. Property prices are approximately 27% lower than in the Cape (average R1.3m vs R1.8m), and rentals around 20% more affordable, with PayProp citing average monthly rents of R9,201 compared to R11,285 in the Cape.
The rental market is often where people returning or moving to the metros turn to before they even start thinking about purchasing property. Gauteng, as the biggest economy in the country, is therefore also the largest rental market with about 37.8% of households renting according to TPN.
Despite the high demand, rents have remained affordable, increasing by only around 2.9% on average over the last year according to PayProp. That said, many areas have seen increases of 3% - 5% due to higher demand and a lack of stock, thus presenting opportunities for rental investors, according to rental agents from Seeff.
Aside from more affordable rentals, the costs of living are also slightly lower in Johannesburg and Pretoria, according to Numbeo.com. The Gauteng metro areas also offer a much wider range of more affordable rentals including more entry-level housing.
Investor hotspots emerge
Christa Roos, licensee for Seeff Helderkruin, says she has observed an influx of people heading to areas in the valley (Kloofendal, Helderkruin, Wilro Park and Roodekrans), largely due to the good value for money. Rental properties move very quickly in the R15,000-plus market.
Joburg South and Alberton are very popular due to affordability, especially in the R4,500 to R8,000 per month range, says Ruth Sturgess from Seeff, adding that there are investor opportunities to earn steady rental incomes from R6,000 to R12,500 (family houses in Kibler Park).
According to Carin Buitendach from Seeff Boksburg and Benoni, these areas are very popular for their affordability in the R5,000 to R7,000 per month range, with top-end rentals reaching R15,000 for a freestanding house rented out by Seeff. Rents grew by about 5% over the last year, and there is opportunity for investors to earn steady monthly rentals of R6,000 to R6,500.
Randburg offers a broad middle-class appeal, and a great choice of affordable rentals in the R7,000 to R14,000 per month range while larger homes tend to rent out in the R25,000 to R35,000-plus range.
The Joburg North West area offers affordability for those who commute for work into Randburg and Sandton. Rochelle Holland, Seeff’s sales and rentals manager for the area says people often rent before they buy in the area. There is also an opportunity for rental investors in the R500,000 to R950,000 price brackets as these are very popular rentals and can earn a steady income of R7,000 to R12,000 monthly.
The Eagle Canyon Golf Estate is also very popular for rentals, priced mostly in the R20,000 - R30,000 range with high-end homes renting out for up to R60,000 - R70,000 by Seeff.
The northern suburbs of Sandton/Bryanston/Fourways is also hugely popular with a mix of status and wanting to be close to business areas driving demand, according to Seeff Sandton. The R10,000 - R20,000 bracket is the most popular, especially for sectional titles while luxury homes range between R45,000 and R60,000, and super homes well above this.
In the Pretoria metro, areas such as Centurion are popular for their proximity to the metro and Midrand, according to Tiaan Pretorius, manager for Seeff Centurion who says correctly priced rentals can go within hours or days. Prices start from R5,000 with the highest demand in the R14,000 to R25,000 range. Rental escalations have been in line with the CPI at between 3% and 5%.
The Pretoria East rental market has been particularly busy this year with Seeff recording some of its best months, according to PG van der Linde, rentals manager for Seeff Pretoria East. The R12,000 to R20,000 bracket has been most active. He says an added boost has come from people who are still hesitant to buy and choose to rent for the meantime.