The average national rent in South Africa rose to R8,785 in Q2 2024, reflecting an R410 year-on-year increase and a notable rental growth resurgence, beating inflation. PayProp’s Rental Index highlighted better-than-expected growth, with June 2024 marking the first instance of rental growth surpassing inflation since 2019. In April, growth rose to 4.9%, peaking at 5.2% in June, a rate not seen since 2017.

Provincially, the Western Cape remained the most expensive region, with an average rent of R10,673, experiencing a surprising 9.7% quarterly growth. Annual growth reached 11.7%, its highest since December 2017. The Northern Cape, with an average rent of R9,412, had modest growth at 2.1%. Gauteng rents increased to R9,018, seeing 3.8% growth after three slower quarters. KwaZulu-Natal had the lowest growth of 1.5%, but Q2 still marked an improvement. Mpumalanga experienced a slight recovery, with rents rising to R8,484, growing at 2.4%. Limpopo had strong growth at 6.1%, reaching R8,128.

The Eastern Cape’s rent increased by 5% to R7,113, while Free State rents grew 5.8%, down from a 9.1% peak in Q1, with an average of R6,765. The North West had the lowest average rent at R6,362, though rental growth remained strong at 6.3%.

These trends were shaped by provincial property supply, demand, and economic conditions. Analysts anticipate potential interest rate cuts could affect future rental demand.