Some municipal rates are now higher than net rental income, warns Growthpoint

Growthpoint, the largest listed property group in SA, plans to ramp up its fight against high municipal rates - for services it has to provide itself.

Growthpoint South Africa CEO Estienne de Klerk said that in the last 15 years, the industry saw an average rate escalation of more than 15%. He said that in some areas, the rates charged per square metre are higher than the net income. 

It has been fighting its rate bills with different municipalities since the 2018 valuation roll came out. But in the interim, it must continue paying.