Property sales in affluent residential areas north of Durban — from La Lucia to Ballito — are continuing on an upward trajectory buoyed by the construction of the R2bn Club Med South Africa on the north coast.
Property experts are seeing more homeowners buying along the northern coastline due to greater investor confidence, easy access to the airport, top schools and swanky homes that are more affordable than the Western Cape.
In a recent development on the property front, 80% of luxury villa sites at Zimbali Lake Resort on the north coast — with price tags of between R4m and R22m — were sold within 48 hours via an on-site silent bid.
IFA Hotels & Resorts, the developers of Zimbali Lakes, has so far achieved R1.6bn in sales over the past five years and building on this success, they recently launched the Tatali Signature Villas, an exclusive residential development.
Closer to the city, from Durban North up to the Sibaya precinct, property agents are seeing more Gauteng buy-to-let investors returning to the area, as prices in the Cape continue to soar and investor confidence in Durban improved in the second quarter.
Pam Golding Properties says almost half of their investment buyers are from Gauteng, while others hail from Germany and some from Durban suburbs such as Berea and Morningside, who are moving north.
The north coast is expected to receive a further economic boost from the Club Med South Africa resort, construction of which is in full swing.
The scale of the resort, expected to open in July 2026, has necessitated a phased construction approach, allowing for multiple aspects of the project to advance simultaneously.
The current focus is on the 345-room hotel, 66 luxury villas, convention centre and parking facilities.
Construction of the main hotel has reached the first floor while the resort centre, which will include a main pool, restaurant, welcome area and boutique, is also taking shape.
Platforms have been prepared, and piling has begun on the 66 luxury villas, each offering estuary views.
Groundwork has started on the state-of-the-art conference venue, designed to accommodate 500 delegates, along with the resort’s parking area, which will maintain a vehicle-free zone for guests’ safety and tranquillity.
Olivier Perillat-Piratoine, MD of Club Med South Africa, said construction is well on track for the opening in July 2026.
“We look forward to onboarding the market and engaging with our customers on this fantastic venture. We will share more information on the resort and the future experience our guests can expect as the construction progresses.”
Over 1,200 workers are expected to be employed at the peak of construction, with the workforce currently at 40% of this target. Most labour is sourced from within a 5km radius of the site, including input from three local wards and the traditional council.
Project director Chris du Toit said: “By combining global standards with local expertise, we are not only building a resort but also contributing to the growth and development of the region.”
Club Med South Africa will also introduce a unique bush experience through its exclusive safari lodge located in the north of Zululand.
Meanwhile Wayne Krambeck, senior vice-president of operations at Zimbali, said the recent launch and success of the Tatali Signature Villas “show that the market is enthusiastic”.
A buyer, who did not want to be named, said the Tatali Signature Villas “promise strong potential for capital appreciation and rental income, making them a unique and versatile investment opportunity. The development parameters allow for various residential uses, such as single residential villas, multi-dwellings and short-term letting.”
IFA Hotels & Resorts, which pioneered the original Zimbali Coastal Resort in 2005, has also secured a R175m infrastructure facility with Absa for the completion of all infrastructure at Zimbali Lakes.
Absa’s Mike Mortimer said the bank has “played a significant role” in the financing of various developments on the KwaZulu-Natal north coast, regarded as one of the fastest growing and sought-after nodes in the country.
“There are numerous factors that make this node an extremely attractive destination from a financier, investor and end-user perspective.
“These include proximity to King Shaka International Airport, availability of quality amenities such as schools, healthcare, water and sanitation, and the unparalleled lifestyle that the area offers,” said Mortimer.
Carol Reynolds, a Pam Golding Properties area principal for Durban Coastal, believes convenience in terms of location and proximity to good schools, retail centres and medical facilities have become priority for residential property buyers, coupled with a general leaning towards secure estate living.
“Areas such as La Lucia — with its secure estates and complexes — Umhlanga and Durban North are in high demand, while upmarket Sibaya also continues to gain traction given its proximity to King Shaka International Airport.”
Reynolds said a further positive indicator for the areas north of Durban is that the Durban Business Confidence second quarter 2024 report showed a significant improvement of 17.07 index points — from 38.42 in the first quarter to 55.49 in the second quarter.
“Johannesburg commuters continue to buy into new developments and apartment blocks where they can reside while enjoying a lock-up-and-go lifestyle with the convenience of being a short commute away from Jozi.”
Reynolds said Gauteng buy-to-let investors are also returning to the area, given that the prices for property in the Cape are much higher.
“Upcountry buyers are also investing in second or holiday homes along our coastline. In fact, approximately 50% of our investment buyers are from Gauteng.
“In recent years we have experienced more foreign interest than usual, including a number of German purchasers who have acquired homes in Durban North and Umhlanga, while we also have an ongoing stream of Dubai purchasers looking to invest here.
“On the whole, however, most of our buyer activity is local with people moving due to lifestyle changes or changes in area needs.”
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