In 2026, rental property remains a powerful way to build long-term wealth, even as the market continues to grow.
Rental property has long been considered one of the most reliable ways to build wealth. But with changing economic conditions and tenants' expectations changing, many investors are asking an important question: Is rental property still a safe investment? REMAX Southern Africa believes that, with the right strategy and careful planning, buy-to-let remains a strong and flexible option in today's property market.
reliable long term investment
According to Adrian Goslett, CEO and Regional Director of Remax Southern Africa, rental property remains one of the most reliable long-term investments available to South Africans.
“Even in a changing economic environment, well-located rental homes can provide consistent income, strong demand and valuable capital growth over time. Properties in established or high-growth areas attract stable tenants and experience low vacancy rates, helping to ensure reliable monthly returns.”
“As these areas develop and demand increases, owners benefit from long-term appreciation in the value of their property. When investors focus on the right fundamentals such as location, affordability and tenant appeal, rental property can remain both flexible and profitable even during periods of economic uncertainty,” he says.
property data
While interest rates, inflation and cost of living remain important considerations for investors. Rental demand is showing encouraging pace in many parts of the country. The latest PayProp Rental Index figures reflect this upward trend.
Average national rental growth reached 5.6% in the first quarter of 2025. The strongest quarterly growth was recorded since Q3 2017 and the average fare reached R9 132. The second quarter saw continued rent growth. With the average national rent rising to around R9 218, and the growth rate remaining above inflation at around 5.0%. Signaling positive real-term performance.
By the third quarter of 2025, the average fare had increased to approximately R9 286. With an increase of 4.9% year-on-year. This continued performance reflects the ongoing demand from tenants. And the ability of rental property to deliver returns that keep pace with, and in some cases exceed, inflation.
Benefits of rental property
One of the major benefits of rental property is its double benefit. An opportunity to generate monthly income while building equity in a tangible asset. Unlike many other investment instruments, property provides both a physical store of value and the potential for stable, long-term returns when managed effectively. However, Goslett says success in the rental market depends on careful research and disciplined financial planning.
“Location remains the most important factor. As properties are located near employment hubs, transport routes and lifestyle amenities, they are more likely to attract loyal tenants and achieve sustainable rental growth,” he says.
Success in the rental market
Investors are encouraged to consider the full cost of ownership. Maintenance, insurance, municipal charges and the possibility of vacancy period are included to ensure realistic return expectations.
The changing expectations of tenants in 2026 are also shaping the market. Tenants are placing greater importance 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 strong long-term returns.
“Property has always rewarded patience and informed decision-making,” says Goslett. “For investors who come to the market with realistic expectations, strong financial discipline and a long-term view, rental real estate can still provide both security and opportunity in 2026.” Despite macroeconomic pressures, the fundamentals underpinning the rental market remain intact. Supported by steady rental growth and continued demand. Buy-to-let property continues to offer South African investors a balanced combination of stability, income potential and long-term value creation.
Posted by Ksenia Abraham