South Africa real estate market — prices, rental yield and trend

• Average price: $1,136 / m²
• Gross rental yield: 10.49%
• 12-month price change (USD): 14.2%
• Net rental yield: 8.39%
• Transaction cost: 14%
• Bubble-risk band: moderate
• Price basis: national average

South Africa is one of the faster-moving markets Glopra tracks: the average residential square metre now costs $1,136, +14.2% in dollar terms over the last twelve months. That makes it the 258th most expensive of the 264 markets in the set. In local currency the same twelve months read +7.9%; the 6.3-point gap is the exchange rate, not the housing market.

What a buyer pays in South Africa

The $1,136 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 14% of the price here. On a 100 m² apartment at the average price that is roughly $15,904 on top of the $113,600 purchase price. That is above the 9.5% median across the set — the entry cost is part of the investment case here. Of that, the transfer tax alone is 0–13% depending on the buyer and the property; the rest is notary, registration and agency fees. Inside South Africa we also track Cape Town separately, where the average is $2,383 — 109.8% above the national figure.

What it earns

A square metre lets for about $9.9 a month. Against a purchase price of $1,136 per square metre that is 10.5% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. That is the highest gross yield of the 311 markets we track. Rental income is taxed at 9–25% — the rate is not a single number here. That is the difference between 7.9% and 9.5% net on the same property. The 8.4% net figure we publish uses 20%. On the way out there is a third tax: a non-resident seller pays 0–18% on the gain, depending on how long the property was held and who is selling.

How the tax works. Progressive: a non-resident's South African rental income is taxed on the ordinary scale from 18%, with the ZAR 17,820 primary rebate and no flat expense allowance, which gives 9–22% across typical rent levels. The upper end of 25% covers the case where the rebate is denied to a non-resident — the Act does not appear to require that, but SARS has not confirmed it, so local confirmation is advisable. Source: sars.gov.za.

Where the price sits against its own history

Prices are +3.7% over five years and +24.6% over ten in local terms. Today’s level is within 6.2% of the country’s own long-run trend, so the price is close to where its own history would put it. Glopra’s bubble-risk score for South Africa is 29 out of 100 — moderate risk. Of the 65 markets scored, 60 read higher. This is a simplified reading: fewer than three index components are available for this market, so treat it as indicative rather than comparable with fully scored markets.

South Africa house price index, 2016–2026 (2016 = 100)

Rebased to 100 in 2016, the index stands at 139 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.

Who can buy in South Africa

Full freehold, few restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for South Africa is built from asking prices from listings. It was last refreshed on 2026-10-29. We rate our confidence in this market’s data low — treat the figures as indicative and check them before acting. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: statssa.gov.za · globalpropertyguide.com · ECB/frankfurter USD-ZAR 2025-09-03/2026-09-03. Snapshot: 2026-10-29.