The rise of apartment living is one of the hottest trends, not only in Cape Town, but also in areas such as Sandton.

Urbanisation, rising traffic, limitations on time and the need for more secure living, are all factors which are prompting people to look for more convenient living spaces.

A more compact lifestyle offered by apartment living unlocks more time and adds quality to your lifestyle. Hence, we see that apartments no longer only appeal to certain categories of buyers or renters, but have a broad appeal, from young professionals, to families and older buyers looking to scale down.

Apartments are also the most sought-after property for rentals, especially those located in high-demand nodes with access to suitable amenities. These properties are therefore generally excellent buy-to-let investments given that there is an almost perennial demand for rental accommodation, especially in areas such as the Cape Town Southern Suburbs.

A new development such as Alphen Glen for example offers outstanding investment potential with above average rental returns projected based on actual rentals achieved.

Rental yields of 6.8% to 9% on a one-bedroomed unit and this could potentially increase further over a 6-year period. Using the example of a standard one-bedroomed unit with one bathroom and a parking bay and around 47sqm, which, depending on the units is priced between R1,595,000 and R1,925,000 (with no transfer duty payable) could yield a monthly rental of R11,000 to R12,000.

At a projected rental escalation of 8% per annual over the next 6 years, the investor could see a rental yield of 7.9% in year 1, 8.87% in year 2, 9.61% in year 3, 10.39% in year 4, 11.22% in year 5 and in year 6 the yield could reach 12.12%.

We are seeing high demand for rentals in the area and in the Alphen Glen in particular and this is an investment opportunity not to miss.