Rising interest rates drive demand for extended rental agreements

The FNB Rent Price Index has remained positive for two consecutive quarters, reaching a 12-month average of 4.7% in quarter three of 2023. The average rent price on a 12-month rolling basis is N$7 177. The bank’s Economist Ruusa Nandago says individuals are delaying property purchases and choosing extended rentals due to higher interest rates and affordability challenges.