With 2025 well underway, savvy investors are looking for innovative ways to grow their wealth, and the buy-to-let property market is emerging as a worthwhile investment in South Africa.
Image: Supplied
As 2025 unfolds, savvy investors are turning their attention towards the burgeoning buy-to-let property market in South Africa.
Barto van der Merwe, Managing Director of Renishaw Property Developments, explained the attractive nature of this investment landscape.
“Following years of economic uncertainty, the shifting market conditions now favour investors ready to take advantage of improved stability in South Africa,” he said.
“The potential growth value of new developments such as Renishaw Hills, along with the increasing demand for quality coastal retirement rentals, has led to a significant uptick in the buy-to-let segment along the KZN South Coast.”
With 2025 well underway, savvy investors are looking for innovative ways to grow their wealth, and the buy-to-let property market is emerging as a worthwhile investment in South Africa.
Image: Supplied
Van der Merwe outlined three key reasons why 2025 is a strategic year for investing in rental properties:
“The outcome of the national elections means that political uncertainty is no longer a major disruptor to the property market, and this is further strengthened by our more stable power supply,” stated Van der Merwe.
He pointed out that the current prime lending rate is at 11.0%, following a repo rate of 7.5% as determined by the South African Reserve Bank.
“Predictions for continued downward adjustments will lead to more advantageous financing rates for property investors, ultimately yielding better long-term returns.”
Amidst a wave of optimism, the government’s push towards public-private partnerships aims to stimulate infrastructure development, a move that could significantly enhance property values.
“Treasury’s decision to ease restrictions on public-private partnerships under R2 billion, effective from June, should catalyse significant upgrades to infrastructure,” van der Merwe explained.
The integration of schools, shopping centres, and recreational facilities—such as those proposed for the Renishaw Coastal Precinct, wherein Renishaw Hills serves as the first development—will help transform the area into a desirable rental location.
As semigration trends see more people moving from inland regions to coastal hubs, particularly fuelled by the rise in hybrid and remote work models, areas like the KZN South Coast are reaping the benefits.
Van der Merwe indicated that the supply of new, high-quality housing in secure gated estates is failing to meet this surging demand.
“This presents a prime opportunity for investors to secure buy-to-let properties before prices peak,” he advised.
With average rental prices already on the rise in KwaZulu-Natal, this trend is set to continue.
IOL
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