Short-term lets for long-term gains

EVERY DECEMBER, South Africa’s coastal property markets come alive as holidaymakers search for short-term letting in key locations-Cape Town, the KZN North Coast, and the Garden Route among them.

- GRANT SMEE

While this is a massive financial boost for homeowners, the impact goes beyond this annual 'gold rush', with property valuations boosted by this growing demand.

Short-term letting has evolved from a side hustle into a legitimate investment strategy. Platforms like Airbnb, Booking.com and SA-Venues have transformed the way South Africans use their investment properties, allowing owners to generate income and maintain occupancy year-round if they choose.

Homes that perform well as festive rentals increasingly command a premium in the sales market because of the income-generating potential, turning tourism performance into a key factor when investing in property.

The festive season boom

According to data from Airbtics, a short-term rental market research and analytics platform, South Africa’s top short-term rental markets consistently outperform during December and early January.

Cape Town leads with an average occupancy rate of 71%, generating an average annual revenue of R433 000 per listing and an average daily rate of R1 719.

On KZN’s North Coast, hosts earn an average of R479 000 annually, while Durban and Johannesburg see strong domestic demand, averaging R258 000 and R154 000 respectively per year.

These numbers show just how lucrative festive-season letting can be. While coastal markets experience the biggest surge, urban hubs like Sandton and Rosebank are also seeing an uptick as domestic travellers mix leisure with work, and families return home for the holidays.