State of the Rental Market - Cape Town (Atlantic Seaboard & City Bowl)
Category Rentals
Covid as we know had a dramatic effect on the rental housing market and contributed towards the biggest slump we have seen in recent history with many landlords left with vacant properties and loss of rental income.
Looking back at the start of 2022, the rental market has recovered substantially with some properties achieving the same higher rentals that were being achieved late 2019 and early 2020.
According to Jaco Deyzel the Rentals Manager for Kinesis Property, January to March 2022 saw one record month after another in terms of new and existing properties under management with new tenants and record low vacancies.
During this time, they were able to attain some of the highest monthly rates on rental units in the Atlantic Seaboard to date.
The Cape Town City Centre/City Bowl rental market did not recover as quickly as the Atlantic Seaboard however from January 2022 onwards demand in the city has continued to grow as workers slowly return to the city and retail spaces reopen and in some cases new coffee shops, restaurants etc have popped up around the city.
For both the CBD and Atlantic Seaboard, the saving grace was that tourism and business travel resumed and stabilised.
This meant that many of the short-term rentals that had previously flooded the long-term rental market no longer compete on that basis leading to higher demand for long-term rental properties.
According to Jaco, he believes the market will only go from strength to strength from here on forward and especially after winter, the city rentals market should achieve higher rentals than we have seen for the past 2 years.
Kinesis Property manages a substantial portfolio of rental properties along Atlantic Seaboard, City Bowl and Milnerton. If you are a landlord or tenant do not hesitate to contact us on 021 422 5933 or alternatively you can chat to Jaco directly on 0826687507 / jaco@kinesisproperty.co.za
Author: Cesar Alexandre
