In the first quarter of 2026, annual rental inflation rose to 4.7% from 4.5% in the prior quarter, halting a three-quarter streak of decelerating growth.
South Africa’s broader economic conditions will determine whether the rental property market can maintain its renewed momentum through the rest of 2026.
This is despite tenant payment behaviour remaining stable during the first quarter.
Rising inflation and interest rate increases will put extra pressure on tenants, and this may put a ceiling on the rental increases landlords and agencies can expect this year.
SA's residential rental market regained momentum in the first quarter of this year with rental growth increasing year on year for the first time in four quarters. However, while the national picture is improving, the latest PayProp Rental Index shows that the recovery hasn’t reached all parts of the country.
