How to maximise your property investment in the Eastern Cape

Savvy property investors are increasingly looking east, where the Eastern Cape’s combination of affordability, strong rental demand and impressive growth potential is turning heads. Whether you’re a seasoned investor or just beginning to build your portfolio, this province offers untapped potential that could yield impressive long-term returns.

Lightstone data shows that property prices in the Eastern Cape are significantly more accessible than in major metros like Johannesburg and Cape Town. For the same budget that might get you a small apartment in the Western Cape, you could secure a spacious freestanding home or even multiple units in Gqeberha (Port Elizabeth), East London or Komani (Queenstown). Lower entry costs allow investors to diversify more easily or enjoy higher initial yields.

The rental market is far from quiet. The Eastern Cape continues to see steady rental demand, especially in areas close to universities, government offices, and growing industrial zones. Towns like Makhanda (Grahamstown), with its academic calendar driving consistent student demand, or coastal hubs like Jeffreys Bay and St Francis Bay, popular for holiday lets and retiree rentals, present excellent short- and long-term leasing opportunities.

Lifestyle and liveability are fuelling rental demand, too. Take St Francis Bay, for instance. Its blend of coastal charm, growing popularity among remote workers, and appeal as a holiday destination make it ideal for both short- and long-term rentals. Or look at Gqeberha, where a mix of urban convenience, established infrastructure, and a growing student and professional population continues to drive steady tenant demand. Both offer landlords a compelling combination of lifestyle appeal and investment potential.

Of course, choosing the right property is key. In today’s market, investors should prioritise homes with strong tenant appeal: low-maintenance, secure and conveniently located. Sectional title units often provide easier management and lower upkeep costs, while freehold homes may offer more space and long-term appreciation. 

Understanding the numbers is critical for whichever route you take. Here’s how to work out your expected return:

• Gross yield = (annual rental income ÷ purchase price) × 100. For example, if your rental income is R7,000 per month and the property costs R800 000, your gross yield is 10.5%.

• Net yield: Take your gross yield and subtract costs like rates, levies, maintenance, and insurance to find your true return.

But your investment journey doesn’t end with the purchase. Value-adding upgrades can boost both rental income and resale value. Simple additions like fibre internet, security features or energy-efficient solutions such as solar geysers make a real difference to tenants. Staying on top of maintenance and responding quickly to repairs will also help retain good tenants and avoid costly vacancies.

Keeping an eye on the broader picture is just as important. Properties close to proposed developments, schools, transport routes or new business hubs are more likely to appreciate over time. With so many Eastern Cape towns on the rise, early investors stand to benefit as these areas grow and modernise.

Navigating this landscape doesn’t have to be daunting. With deep local knowledge, 25 years of strong rental management experience, and a finger on the pulse of property trends, Just Property’s property practitioners are uniquely positioned to help investors succeed.

From sourcing properties to calculating returns and managing tenancies, the Just Property team can support you every step of the way as you work towards your goal of achieving wealth and security through property sales and rentals. 

So if you’re ready to take your next step in property investment, make it with Just Property by your side. 

This article was sponsored by Just Property.