Student accommodation has become one of the fastest-growing property sectors in South Africa. With thousands of students moving closer to universities, colleges, and training institutions each year, demand for safe, affordable housing continues to rise. If you’re a property owner considering this market, here’s a clear look at the benefits, challenges, and where to invest.

Why Invest in Student Accommodation?

 Pros

1. High Demand, Year After Year

Students need housing every academic cycle, making it a stable rental market with low vacancy levels near institutions.

2. Reliable Rental Income

Monthly rental payments are more predictable—especially if students rely on bursaries, NSFAS, or parents who pay on time.

3. Strong Rental Yields

Rooms can be rented individually, often delivering higher yields than normal residential rentals.

4. Lower Marketing Costs

Word-of-mouth, university Facebook groups, WhatsApp ads, and student referrals work extremely well to fill units.

5. Flexibility

You can rent out per room or full-unit, furnished or unfurnished, depending on market demand.

 Cons

1. Higher Wear and Tear

More foot traffic and younger tenants mean appliances, furniture, and finishes may need replacement faster.

2. Seasonal Vacancies

December–January may be quieter. NSFAS delays can also push back move-in dates.

3. Management Can Be Intensive

Students require more communication, guidance, and monitoring—especially in shared accommodation.

4. Noise & Neighbour Disputes

Communal living can cause conflict with neighbours or other tenants if not well managed.

5. Higher Initial Setup Costs

Good Wi-Fi, beds, desks, security, and utilities need to be properly installed to stay competitive.

Where Should You Invest? Best Locations for Student Accommodation

Location is everything in this market. Students always choose affordable + safe + close to campus first.

Top Factors to Consider

• Walking distance (0–2 km) from campus — this is the sweet spot.

• Access to transport — especially MyCiti, taxis, buses, or train routes.

• Safety — students and parents prioritise secure areas.

• Proximity to amenities — grocery stores, restaurants, laundromats, gyms.

• Presence of multiple academic institutions — demand stays consistent.
  

High-Demand Areas Across South Africa

1. Pretoria (Huge demand)

• Universities: TUT, UP, Sol-Tech, Akademia, colleges.

• Neighbourhoods: Hatfield, Sunnyside, Arcadia, Gezina, Kilner Park, Centurion (Eldoraigne, Die Hoewes).

2. Johannesburg & Surrounds

• Universities: UJ, Wits, Boston College, Rosebank College.

• Areas: Auckland Park, Brixton, Melville, Braamfontein.

3. Cape Town

• Universities: UCT, CPUT.

• Areas: Rondebosch, Observatory, Woodstock, Bellville.

4. Bloemfontein

• Universities: UFS, CUT.

• Areas: Universitas, Brandwag, Willows, Westdene.

5. Durban / KZN

• Universities: UKZN, DUT.

• Areas: Berea, Glenwood, Musgrave, Morningside.

6. Smaller Towns With Growing Demand

Perfect for lower-cost investment and high occupancy:

• Potchefstroom (NWU)

• Stellenbosch

• Polokwane (UL)

• Mbombela

• Gqeberha

• Vanderbijlpark (VUT)

These areas have fewer big developments, meaning private landlords compete less and fill rooms faster.

Student accommodation can be a fantastic investment if:

• You choose the right location,

• Set up your units properly (Wi-Fi, desks, security),

• And manage tenants well.

The demand isn’t going anywhere — South Africa’s student population grows every year.