The current state of the South African economy has triggered a new growth phase in the home rental market says Ronald Ennik, the founder and principal of Christie’s International-affiliated Ennik Estates.
“The trend is being driven by the growing challenge of home ownership affordability in the current climate of rising interest rates, consumer price inflation and other economic constraints and uncertainty – against a background of zero home price growth,” Ennik adds.
“That is why we have expanded and deepened our operating footprint in the homes rental market to meet rising tenant demand in Johannesburg’s Northern Suburbs and Sandton – which is the primary area of Ennik
“The process is spearheaded by home rentals marketing and lease management specialist Linda Prigge – our newly-appointed rentals manager,” says Ennik.
(Linda was previously the Gauteng rentals manager of one of South Africa’s largest residential real estate brands.)
“Managed rentals will be a standout feature of the expanded range of home rental services that Ennik Estates will now offer under Linda’s leadership of our re-structured and expanded rental division,” says Ennik.
This comes at a time when demand for homes in the R7 000 to R15 000 monthly rental bracket is picking up tremendously – to the extent that there is a huge shortage of stock, he adds.
“Demand is currently less intense at the R20 000-plus top end of the market – traditionally the domain of foreign diplomats, professionals, and senior corporate executives – which is ideally serviced by a managed rental programme that takes care of maintenance, rental collection and other lease aspects”, says Ennik.
“The recent relaxation of South Africa’s (previously onerous) visa requirements for foreign visitors should soon provide some impetus in the higher rental bracket. For them, prestige home rentals in our country are clearly a bargain at current exchange rates”.
“However, we must accept that South Africa is currently no longer exciting territory for foreign direct investment – and is likely to remain so until we get our socio-economic and -political ducks in a row once again,” Ennik concludes.