INVESTING
INVESTING
Short-Term Rentals: Still a Smarter Investment in 2025
As global travel continues its rebound and lifestyle-driven relocation becomes the norm, the short-term rental( STR) industry stands out as one of the most dynamic and rewarding real estate strategies of our time.
In 2025, despite the headwinds of tighter regulations, rising interest rates, and shifting guest expectations, STRs are thriving driven by stronger data tools, more mature platforms, and evolving consumer preferences.
Top 3 Takeaways
• Rental yields remain high- Especially in markets like Cape Town, with STRs outperforming long-term leases by 30 – 50 %.
• Platforms are upgrading tools and rewarding quality- Professional hosts now get better visibility, bookings, and profits.
• Travel demand is surging- with longer stays and lifestyle travel driving steady occupancy across well-positioned rentals.
For forward-thinking investors, this moment presents a unique window of opportunity. Whether you’ re scaling a portfolio, exploring rental arbitrage, or looking to turn an underperforming property into a cash-flow machine, the time to act strategically is now.
44 REI MAGAZINE MAY 2025