PayProp Rental Index Q3 2025: Growth Levels Off
- House of Realtors Content Creation Team
- 2 minutes ago
- 2 min read
PayProp's latest Rental Index shows that South Africa's rental market is still growing in real terms, but momentum softened in Q3 2025. The update highlights national trends, rising arrears, and sharp differences between provinces, which matter for landlords, agents, and investors planning 2026 strategies.
National rental growth slowed but stayed positive
Average rents grew 4.9% year on year in Q3 2025, taking the national average to R9,286. That is about R430 higher than a year earlier, so rental growth remained above inflation for the fifth straight quarter. However, growth eased from 5.0% in Q2 while inflation picked up, which narrowed real margins for landlords and agents.
Arrears edged higher
The share of tenants in arrears rose to 17.2%. That is still close to record lows, but it is the highest level since Q3 2024, signalling that affordability pressure is building even as overall rental growth remains healthy.
Provincial performance diverged
Provincial trends were mixed. Gauteng improved to 3.0% growth after 2.4% in Q2. Limpopo recorded 10.9% growth, its fourth consecutive quarter in double digits. The Western Cape slowed to 7.0% growth but remains the most expensive province with an average rent of R11,635. Mpumalanga posted -0.2% growth, the first negative result since Q1 2024.
What it means for landlords and investors
The index suggests rental returns are still positive in real terms, but the margin cushion is thinner than earlier in 2025. For investors, that makes tenant screening, arrears monitoring, and steady lease management even more important. The full PayProp Rental Index includes a detailed provincial breakdown, plus insights on damage deposits and profitability strategies.
Source: This post summarizes "PayProp Rental Index: Rental growth levels off in Q3" by PayProp South Africa, originally published on PayProp Blog. Read the full article here.
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