Semigration to the Cape has notably enhanced the residential rental market, particularly in areas like Durbanville, which offers a fabulous lifestyle and greater affordability, says Daniela de Villiers, Seeff’s rentals manager for the Durbanville area.
The increased demand has created numerous opportunities for investors and landlords in the region, offering attractive rental yields of 6%-10%, depending on the location and type of property, she notes.
Average rental rates in the Durbanville area and its surroundings range from R9,000 to R25,000, while luxury homes start at over R30,000 per month. Luxury estate properties can reach as high as R51,000 and R60,000 per month when rented out by Seeff in the Kanonberg and Clara Anna Fontein estates.
Tenants primarily hail from Gauteng, specifically the Pretoria area. They are drawn to the region for its central location, reputable schools, and relative affordability compared to other upscale areas in Cape Town.
Durbanville provides easy access to major roads and boasts well-maintained, secure neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are added bonuses for those relocating from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical institutions, as well as those undertaking practical rotations at state hospitals in the region, are also attracted to the rental market.
Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, states that the location is also popular among those who appreciate an active lifestyle, as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht falls within the R13,000-R20,000 range, while yields vary from 6% to 10%.
Schools are a significant draw, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are attracted to the excellent selection of apartments in the area, including those at the Waterfront. Apartments rent for R9,000 to R11,000 per month, which is more affordable compared to the Cape Town CBD. Townhouses are a popular alternative, priced well at R14,000 to R18,000. Even luxury homes at R41,000 to R51,000 offer good value compared to other upper-end areas.
The opportunity for investors primarily lies in properties within the R1.2 million to R2.4 million price range, where they can secure a rental income of R9,000 to R20,000 per month, yielding a return of 5-7%.
Gratia van Jaarsveld, another Seeff rental agent, cautions that landlords must ensure their prices align with the market; otherwise, they risk failing to attract quality tenants within a reasonable timeframe. Properties that welcome pets are always in demand. When investing in a rental property, a prime location is essential, but landlords must also maintain their properties to optimise rental income and retain quality tenants.
The areas of Pinelands and Thornton, which are closer to the city, report similar trends. Johan Meyer, licence holder from Seeff for these regions, states that the high demand is due to their proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff, and those working at the Old Mutual offices.
Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting for between R9,500 and R14,000, while houses start from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive.
Semigration boosts Cape residential rental yields, unlocks investment opportunities.
Semigration to the Cape, particularly from Gauteng, is driving strong demand in the residential rental market. Areas like Durbanville, Welgedacht, and Pinelands offer attractive yields of 6–10%. With lifestyle appeal, good schools, and affordability, investor opportunities are growing—especially for well-located, mid-range properties offering stable returns and tenant demand.