3 reasons why a buy-to-let property investment is a good move in 2025

With 2025 well underway, savvy investors are looking for innovative ways to grow their wealth, and the buy-to-let property market is emerging as a worthwhile investment in South Africa. New developments, such as the mature lifestyle estate Renishaw Hills on the KZN South Coast, are being singled out as prime investment examples, with the in-demand coastal lifestyle and quality amenities attracting interest.

“Following years of economic uncertainty, the shifting market conditions now favour investors who are ready to take advantage of improved stability in South Africa,” explained Barto van der Merwe, MD of Renishaw Property Developments. “The potential growth value of new developments such as Renishaw Hills, and the need for quality coastal retirement rentals, has seen a rise in the buy-to-let segment on the KZN South Coast.”

He went on to share three key reasons why investing in rental property in 2025 is a strategic move:

1.       Positive economic sentiment supports market growth

“The outcome of the national elections means that political uncertainty is no longer a major disruptor to the property market, and this is further strengthened by our more stable power supply,” said Van der Merwe. “The current prime lending rate is 11.0%, based on a repo rate of 7.5% as determined by the South African Reserve Bank. The prediction of continued downward adjustments will result in more favourable financing rates for property investors, as well as better long-term returns.”

2.       Major infrastructure developments boost property values

“We’re seeing government promote more public-private partnerships in an effort to stimulate infrastructure development, all of which bodes well for property investors,” says Van der Merwe. “Treasury’s move to cut red tape on public-private partnerships under R2 billion – coming into effect in June – should see major infrastructure upgrades. This is likely to increase property values, particularly as areas become more accessible.”

He said the addition of schools, shopping centres, and recreational facilities – such as those in the pipeline for Renishaw Coastal Precinct (of which Renishaw Hills is the 1st development) – will transform neighbourhoods into prime rental locations.

3.       Growing demand for rental housing creates opportunities

The ongoing trend of semigration from inland regions to coastal hubs, supported by hybrid and remote work models, continues to shape the property landscape, with areas like the KZN South Coast reaping the rewards. However, Van der Merwe says the supply of new, quality housing in gated security estates is struggling to keep pace with rising demand.

“This presents a prime opportunity for investors to secure buy-to-let properties before prices start to peak,” he said. “KwaZulu-Natal has already seen the average rental price growing, and we anticipate this trend to continue.”

Why Renishaw Hills is a prime buy-to-let investment

Located in Scottburgh on the KZN South Coast, Renishaw Hills offers more than just quality homes, it provides a secure, lifestyle-driven investment opportunity. Key benefits include:

• Located within the 1 300-hectare Renishaw Coastal Precinct, it’s surrounded by stunning Blue Flag beaches, coastal forests, and extensive hiking and biking trails.
• Residents enjoy affordable levies covering exterior maintenance, garden services, refuse collection, postal services, fibre-optic WiFi, 24/7 security, and healthcare options.
• There are exceptional amenities, including 20+ active clubs, communal facilities, and a new bowls green under construction.
• Water security, with an independent water supply ensuring uninterrupted access.
• There are a range of investment options, from lock-up-and-go apartments to maisonettes and houses, all built to the highest standard boasting exceptional views and unmatched quality of life.

Renishaw Hills Offers Let-to-Buy

Turning the traditional format around, Renishaw Hills now offers interested investors the option of renting a unit at Renishaw Hills while they consider purchasing a property on the estate (available on selected units only and subject to availability). These fully-furnished units, available for short-term rental, give potential buyers a chance to experience the coastal lifestyle and quality estate offerings before they commit to a purchase. The maximum rental term is six months, with the further advantage of the purchase price being discounted by the value of the rent over the period.

Get in touch!

Far from being just an active retirement community, Renishaw Hills in Scottburgh on the KZN South Coast is a premier mature lifestyle estate for individuals over 50, offering a vibrant, active lifestyle. For more details about Renishaw Hills or to arrange a tour, contact Kelly at 064 198 2693, email sales@renishawhills.co.za, or visit www.renishawhills.co.za.