36 REI MAGAZINE JULY
Rental Escalations Inflation has escalated from the beginning of 2021 . Rental escalations followed suit from the end of 2021 , according to the PayProp Rental Index Q1 2024 Report .
The above graph shows the weighted average national rental growth rate ( year-on-year ) versus inflation .
Overall , our national rental growth rate seems stable .
Way forward So , where does all of this leave you and your property investments ? This is my take on our current property forecast and economic outlook .
Firstly , it ’ s still a buyer ’ s market out there with high supply and lower demand . And people are desperate , so you might just snag a great deal !
Secondly , the rental market is recovering with fewer tenants in arrears and increasing rental growth . And when you buy the right types of properties , property prices are still going up .
Thirdly , property is still one of the best investments . Your ungeared return on property ( capital growth plus net rental yield ) remains much higher than returns on other investments , including the JSE .
Therefore , I am still a champion of property investment and wholeheartedly believe that although the sector appears cloudy now , there is always an opportunity to make it rain .
View the recording of our webinar , Property Investment Trends and Analyses .