KZN rental market hot spots and highlights
KZN remains a sought-after destination for rental accommodation, according to the Seeff Property Group. It is one of the most popular provinces to live in, whether you choose to reside along the coast, or inland towards the Midlands. The climate and lifestyle are big draw cards for people.
The province has a bustling economy, especially around areas such as Durban and Richards Bay and there are exciting developments underway. The Port of Durban is widely considered to be the busiest seaport in sub-Saharan Africa, handling a significant volume of cargo, including over 60% of South Africa's container traffic.
According to the latest PayProp Rental Index for the second quarter of 2025, the average residential rental for the province is R9,218 per month, about 3.6% higher compared to the prior year. That said, many areas offer excellent affordability, especially in the Durban Metro which is part of what attracts tenants to the rental market.
Queensburgh - Robust Rental Market offering Investment Opportunities
A suburban charm, affordability and access to urban amenities are some of the characteristics of the Queensburgh area. Michelle Vermeulen, licensee for Seeff Queensburgh, says the rental market is very active, with high demand and low supply. “We have literally been running tenants 7-days a week from 8am to sometimes 7pm at night,” she comments.
For most, renting is more affordable than purchasing, especially in the R6,000-R7,000 price bracket as there are few properties for sale in the better areas, especially flats that can accommodate the affordability.
The R6,000-R6,500 is always active. These are tenants with a combined or single monthly income of at least R18,000 - R19,500 per month. Seeff has also recently seen demand for 2-bed units for R7,500, and upmarket 2-bed townhouses in the R8,500-R8,750 range. Notably, Seeff achieved a rental of R13,000 per month for a 3-bed house with a study and teen paid, higher than what the demand is for, says Michelle.
There are huge opportunities for rental investors. These include a dire shortage of affordable 3-bed houses in the R9,000-R10,000 range with some landlords asking up to R13,000 per month. Flats and townhouses in the R600,000-R750,000 range are also in demand. For instance, Seeff recently sold an entire five-unit complex with one unit bought by its tenant, and the others sold quite quickly. “If we had another 20 complexes, we would have sold them quite quickly to homeowners or investors, such is the demand,” says Michelle.
The rental market for these properties is robust. Two-bedroom units in areas such Bellair and Malvern are renting for R6,000-R9,000. In St James in Escombe, 2-bed simplexes go for R7,000-R8,500, and in Leeton Park in Malvern, 3-bed simplexes can go for R10,500-R11,500, depending on size, condition, and outdoor space.
Midlands – Picturesque Surroundings and Country Living Drawing Tenants
The Midlands is one of the more popular residential areas in KZN for a variety of reasons. According to Sean Moffat and Joan Ridl, licensees for Seeff Midlands, the rental market in Howick, Hilton, and Pietermaritzburg (PMB) is generally buoyant, driven by consistent demand across different segments.
A steady influx of professionals, families, and students means that demand for quality housing is fast outpacing supply. This is particularly evident for secure, well-maintained properties, with a notable shortage in the mid-range bracket of R6,000-R18,000, according to the licensees. The diverse tenant profiles - from retirees in Howick seeking a quieter pace to families in Hilton desiring secure estates and top schools, and a wide mix in Pietermaritzburg as a regional hub - contribute to a vibrant market.
The Midlands rental market presents a lucrative opportunity for investors, driven by a significant imbalance between supply and demand. The sweet spot for landlords lies in the R6,500–R18,000 range, where well-located 2-3 bed houses, townhouses, and cottages are highly sought after.
This segment not only sees the most activity but also delivers impressive gross yields of 6–8%, bolstered by average annual escalations of 8%. While smaller 1-bed units are also in strong demand, luxury properties can fetch up to R40,000 per month. It is, however, the mid-range market that offers the most robust and consistent long-term returns, making the region a compelling prospect for property investments.
Richards Bay – Economic Opportunity and Coastal Living Boosting Rentals
Elaine Vandayar, licensee for Seeff Richards Bay says the rental market remains strong, primarily due to ongoing demand from professionals relocating for work and families looking for secure, well-located properties. The market is driven by various factors, including the town's economic activity and housing supply. The limited availability of homes in popular neighbourhoods has contributed to maintaining rental prices.
Richards Bay has a diverse tenant demographic. Many of the tenants are mid- to long-term renters who are drawn to the area's steady job opportunities. People prefer to rent here for access to the coastal lifestyle, good infrastructure, and proximity to employment centres. The town has reputable schools, shopping malls, and medical facilities, making it a convenient and appealing option for families.
Rental prices vary depending on the area and property. Generally apartments range from R5,500-R8,500, and townhouses from R10,500-R16,500. Freestanding houses range from R13,500-R22,000 while high-end estates and waterfront units can go as high as R60,000. Seeff has for example secured rentals of up to R53,000 to R55,000 per month.
Elaine says there is a shortage of rental properties, and an opportunity for investors, especially for 2-3 bedroomed units in the R8,000-R12,000 range. This is particularly applicable to the entry-level segment, driven by high demand from professionals and families seeking accommodation near the city’s industrial and port areas. Investors and developers who concentrate on creating such housing options could benefit from the sustained demand in this segment. “We also have a significant shortage of pet-friendly properties, which are in high demand,” she says.
Properties priced between R800,000-R1.5 million are particularly desirable and offer attractive returns. For instance, sectional title units with an average selling price of R1.5 million can achieve monthly rental rates between R7,000 and R8,500, resulting in a yield of approximately 5%.
Elaine concludes by recommending that potential investors ensure they work with an experienced local property agency. This will ensure that they get the optimal advice in terms of the type of property, area, and potential rental income that they can expect to earn.
