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When taking a look at property investment over the last couple of years, the sentiment was that the idea of investing in property felt risky. With rising and unstable interest rates, loadshedding, and political uncertainty, the consumer believed that there were just too many unknowns. Lately, however, something interesting has been happening in the South African property market: confidence is returning, and the buy-to-let space is leading the charge.
Whether it’s young professionals buying their first investment flat or experienced landlords expanding their portfolios, more and more people are once again seeing real estate and specifically buy-to-let properties, as a smart, long-term move.
So, what’s driving this renewed interest?
1. An ever-growing demand for rentals
South Africa is seeing a growing population of long-term renters as homeownership is still a dream for many. This dream is being delayed by high living costs, stricter lending criteria, costs relating to buying a home, as well as the current lifestyle preferences and trends are still leaning to more flexibility.
For investors, this means a steady stream of potential tenants, especially in urban hubs like Johannesburg, Cape Town, Durban, Pretoria, and even fast-developing township areas. Areas close to universities, office parks and commercial buildings, retail stores, and transport routes are especially popular, making them hot spots for rental investment.
To put it simply, people will always need a home and this creates opportunities for landlords.
2. The leveling out of interest rates
After the steep rate hikes of recent years, there’s finally a bit of breathing room. Interest rates are starting to stabilize in 2025, and that’s made bond repayments more predictable, something every investor can appreciate.
Banks have also become more accommodating and have an appetite toward buy-to-let purchases, especially when the numbers make sense. All of this gives investors the confidence to finance new properties without the fear of sudden affordability pressure.
3. A property is a tangible asset and still one of the safest investments
While crypto, stocks, and forex markets can be exciting, they can also be volatile and overwhelming for even the most seasoned investor. However, property on the other hand, remains something you can see and touch. It’s not a quick turnaround investment, but it is a reliable long-term wealth builder.
In a time where many South Africans are looking for stability and real value, property ticks a lot of boxes. And when it comes to buy-to-let, there’s the added bonus of passive income where your tenants help pay off your investment while the asset itself grows over time.
4. The rise of smart developments and Sectional Titles
Buy-to-let isn’t just about older apartments in high-density suburbs anymore. Developers are now building investor-friendly, tenant-attractive properties with features like security, fibre internet, gyms, restaurants, communal spaces, and even co-working areas.
These modern, often sectional title units are easier to manage, offer lower risk, and designed for rental success. Whether it’s a bachelor pad near a university or a two-bedroom townhouse in a family-oriented estate, these types of properties are affordable to buy and easy to rent out.
It’s also easier than ever to manage them, especially if you use an agency that handles everything from tenant vetting, inspections, deposit management, rent collection and maintenance requests.
5. You can enter the buy-to-let market
There’s a common belief that property investing is only for the wealthy, but that’s changing. First-time investors are getting smart about things like co-investing with partners, friends, family members and look for developments that allow them to buy off-plan, and using the equity in their primary homes to fund additional properties.
You just need a solid plan, a good team consisting of a professional real estate agent and a bond originator, and a willingness to learn..
The question you may have is “when is the best time to commit?” – Paul Stevens, CEO of Just Property says, “It’s never about perfect timing, it’s about getting in when the fundamentals are strong, and right now, the fundamentals are looking pretty good for buy-to-let. Looking at the strong rental demand, stabilising interest rates, high-growth urban areas and more affordable, investor-friendly developments, you will see that the buy-to-let market deserves a serious consideration.” He adds, “If you’re looking for an investment that offers steady returns, long-term security, and the chance to grow your wealth over time, this is the type of market you should be looking at.”
The bottom line is that confidence is coming back. Not because the market is booming uncontrollably, but because it’s starting to show signs of healthy, sustainable growth and for smart investors, that’s often the best time to get in.
