People usually say “new year, new me”, but for tenants, it’s actually “new year, higher rent”. Each year comes with its own stuff, and it seems 2026 is coming with increased rent for tenants. Waldo Marcus, director at TPN Credit Bureau, said several factors will influence residential and commercial rents going up this year.
“With residential rental shortages driving escalations of 4.5% to 5.5%, commercial rentals under pressure, and widening disparities between well-governed and poorly governed municipalities,” he said. TPN Credit Bureau’s data show that the rental increase is supported by provinces like Gauteng, which is expected to see continued positive growth in key residential nodes. Marcus said that a persistent shortage of residential rental stock is the primary driver of predicted rental price growth, while commercial property, particularly office space, continues to face headwinds, but has seen vacancy improvements due to limited new supply coming online.
“The commercial sector, particularly office space, will continue to face downward rental growth, with escalations expected to drop to approximately 3.0%,” he said. “However, specific asset types, particularly in storage, industrial hubs and convenience retail, are showing optimism.” Marcus highlighted that the Western Cape is experiencing a shortage of residential places to rent; however, this is expected to ease. He questions whether affordability will remain paramount.
Read Full Article on The Citizen
[paywall]
“The fourth quarter of each year typically sees a spike in shorter-term rentals in the province, fuelled by local and international tourism,” said Marcus. “Gauteng, on the other hand, is expected to continue its upward trend in rental escalations, partly mitigated by the growing trend of commercial-to-residential conversions. “Rental escalations in the Eastern Cape are expected to remain flat, while KwaZulu-Natal is expected to continue on an upward trajectory, but at a slower pace.
[/paywall]
