The cheapest and most expensive provinces to rent property in South Africa

Rental prices vary greatly across South Africa, with a new report showing that the average rental price between the country’s cheapest and most expensive provinces is over R4,500.

South Africa’s residential rental market continued to cool in the third quarter of 2025, according to the latest PayProp Rental Index.

As higher inflation continues to put more pressure on tenants’ spending, rental agents will need to vet tenants carefully and set market-related rents that neither stress affordability nor threaten landlords or agents’ livelihood.

Year-on-year rental growth eased to 4.9%, down slightly from 5.0% in the second quarter of 2025. Average rent rose to R9,286, an increase of R430 compared to the same period last year.

However, the gap between rental growth and inflation narrowed as the CPI edged higher during the quarter.

At the same time, the proportion of tenants in arrears rose to 17.2%, the highest level in a year, but still close to the historic low of 16.9%.

However, tenants who fell behind on their rent owed less than ever before – the average arrears percentage dropped to a new record low of 72.6% of the monthly rent.

“After several quarters of strong real-terms rental growth, we are starting to see affordability pressure build,” said PayProp’s Michelle Dickens.

“While most tenants are still managing their commitments well, the rise in the number of tenants in arrears is a reminder that sustained increases in rent, debt levels and living costs can quickly squeeze budgets.”

“As always, consistent tenant vetting and proactive renewal management, including rent increases, remains essential.”

Inflation averaged 3.4% across the quarter, up from the second quarter’s 2.9%, softening real-terms rental returns.

Despite this, the third quarter marked the fifth consecutive quarter in which rental growth outpaced inflation, albeit by a smaller margin than earlier in the year.

Dickens notes that rental growth may now be stabilising after a period of higher increases to make up for negative real-terms growth during and immediately after the pandemic.

South Africa’s cheapest and most expensive province

Rental performance varied significantly across South Africa in the third quarter, with some provinces accelerating while others lost momentum.

The Western Cape still has the highest rents in the country, with a 7.0% growth rate, which has taken the average rent to R11,635.

Despite sustained rental price growth, the province also maintained the lowest arrears levels nationally, highlighting the resilience of tenants in the area.

Limpopo’s rental growth surge continued for a fourth consecutive quarter, with rents climbing 10.9% year-over-year to reach R9,283.

The province is now on track to overtake KwaZulu-Natal and possibly Gauteng in average rent, if current trends persist.

Gauteng experienced a slight improvement after two subdued quarters, recording 3.0% growth and increasing the average rent to R9,321.

KwaZulu-Natal grew at 3.1%, bringing its provincial average to R9,293 and remaining within a narrow margin of Gauteng and Limpopo in the price rankings.

The Eastern Cape continued to build on its recovery with a strong 7.0% growth, resulting in an average rent of R7,608.

Meanwhile, the Free State slowed to 5.1% growth, with rents averaging R7,120, making it the cheapest province in the country.

This means that the difference in average rentals between South Africa’s most expensive province, the Western Cape, and the cheapest province, the Free State, is R4,515.

Rental prices in the North West were only slightly more expensive, at an average monthly price of R7,179, Payprop revealed.

At the lower end of the growth spectrum, Mpumalanga slipped into negative territory at -0.2%, becoming the first province to record a year-on-year decline since the first quarter of 2024. The average rent edged down to R8,441.

Meanwhile, the Northern Cape maintained its momentum with 7.1% growth, reaching an average rent of R10,111.

Affordability tightens

While rent-to-income ratios have remained stable at an average of 31.2%, tenant finances are under increasing pressure from higher debt obligations.

Applicants are now spending 47.8% of their income on debt repayments, leaving just R1 in every R5 of income available after rent and debt.

As rents rise, upfront costs for tenants are also increasing. The average damage deposit in South Africa has remained stable at 1.31 times the average rent, but provinces with higher rents have correspondingly higher deposits.

In the Western Cape, the average deposit reached R19,630 in the third quarter of 2025, putting further strain on household budgets.

“While the sector remains fundamentally sound, we are entering a more delicate phase for tenant affordability,” Dickens said.

“Agents who strategically understand their local market data and who use it to guide pricing, vetting of tenants and renewals, will be best positioned to protect both landlords and tenants in the months ahead.”