Durban’s North Coast has long been an attractive destination for home buyers drawn by the area’s established infrastructure, quality amenities and strong precinct management, but in recent years, there has been significant growth in the rental market, attracting keen investment buyer interest in the area.
“The North Coast has become a prime location for locals and upcountry migrants seeking a coastal lifestyle and this has notably bolstered the rental market, especially in areas like Ballito and Umhlanga and in secure estates along the coastline,” says Sabrina Errico, Lew Geffen Sotheby’s International Realty Broker Principal in Ballito and Umhlanga.
And in Johannesburg with 96% of residential property in Rosebank comprising convenient sectional title apartments, savvy, young career-minded individuals and investors are moving into the area to capitalise on all the benefits of this vibey, central location with a host of entertainment and other amenities on tap, according to Alisha Dippenaar, Pam Golding Properties area manager based in Hyde Park in Johannesburg’s northern suburbs.
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Errico says Ballito has transformed from a quiet coastal town into a bustling residential and commercial hub, while Umhlanga has become a cosmopolitan centre with a thriving business district.
Both areas benefit from excellent transport links, including easy access to King Shaka International Airport, the M4, and the N2 highways. This accessibility makes them ideal locations for commuters and business professionals working in Durban or the greater eThekwini Municipality.
“This coastal strip is particularly attractive to people moving from larger cities like Johannesburg and Pretoria, drawn by the coastal lifestyle and relatively affordable rental prices compared to Cape Town or Sandton and, with a growing population, both Ballito and Umhlanga have seen a steady increase in rental inquiries over the past few years.”
She adds that many people who move here from other areas prefer to rent before they buy so that they can take their time choosing a home.
“Ballito and Umhlanga are both excellent areas for investment buyers looking to enter the rental market. The steady influx of tenants, coupled with the strong demand for rental properties, makes these regions attractive for investors.
“The local economies of Ballito and Umhlanga are also expanding, which adds to the long-term viability of property investments. Commercial developments, shopping malls, schools, and healthcare facilities are all growing to accommodate the rising population, ensuring continued demand for rental properties.
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“In Ballito, some of the most sought-after areas include Ballito Central, Simbithi Eco Estate, and Zimbali Coastal Resort, Brettenwood, Zululami and Seaton, Elaleni. These locations offer proximity to both the coast and key amenities such as shopping centres, schools, and healthcare facilities, making them popular with families and professionals.
“There is strong demand for freestanding homes, particularly within gated estates like Simbithi. Zimbali Lakes and Zimbali Coastal Estate. These estates offer secure, family-friendly living with golf courses, schools, and shopping centres nearby. There is also a growing interest in smaller units like townhouses and modern apartments, particularly from younger families and professionals relocating from other cities.
“In Ballito Central, house prices start at around R2.8 million with the most active price band being R3.5m to R6.5m. In the rental market, a three-bedroom home bought for around R4m in Ballito will yield a monthly rental of about R30 000.
“In the estates, sale prices are higher the most active price band is generally between R7m and R12m and the most active rental segment is homes priced between R40 000 to R50 000 per month.
“Luxury apartments and townhouses are highly sought after, especially in gated communities and estates with access to security and amenities such as pools, gyms, and landscaped gardens. Young professionals, business executives, and retirees dominate this market, favouring lock-up-and-go apartments that offer a mix of comfort and convenience.”
Rental returns in both Ballito and Umhlanga are competitive, says Errico: “For apartments in Umhlanga Ridge or luxury homes in estates like Zimbali, investors can expect rental yields ranging between 6% and 8% per annum, depending on the property type and location.
“In Ballito, rental yields are slightly lower, typically ranging from 5% to 7%, but this is offset by the lower initial property prices compared to Umhlanga.
“Both areas have seen steady rental price increases over the past few years, and with continued development and demand, rental returns are expected to remain strong. Investors can also benefit from long-term capital appreciation, especially in premium areas where property values have consistently risen.”
The area also has a very active short-term rental sector and, according to Errico, the high demand for short-term rentals, especially in holiday seasons, offers a unique opportunity for investors to diversify their rental income.
“Both Ballito and Umhlanga are popular tourist destinations, and properties in prime locations can command higher rents during peak vacation periods.
“The average rental is between R700 to R2 000 per night out of season, and between R1 500 and R4 000 in peak season.
“The rates can go as high as R8 000 to R10 000 per day for upmarket houses and larger apartments. We only market from Ballito to Sheffield, and in this coastal strip, I would say that Ballito and then Chakas Rock are the most popular areas.” Holiday let companies are already 98 % booked for Christmas and New Year.
According to Errico, stock shortages are now being seen in certain parts of both Ballito and Umhlanga, particularly for specific property types.
“In Umhlanga Ridge, there is a shortage of high-end luxury apartments, driven by high demand from both local and international renters and in Ballito, the shortage is more pronounced in family homes within secure estates, as more families seek out gated communities with access to good schools and recreational facilities.
“As demand continues to rise, developers are working to keep up with the needs of the rental market. However, with the influx of people moving to these areas, it’s likely that stock shortages will persist in some sectors, particularly for properties that offer security and modern amenities.”
Young career-minded homebuyers feeling the vibe in Rosebank
Lightstone statistics show that a massive 53% of existing owners have owned residential properties in Rosebank for less than five years, highlighting the impact of the numerous new developments in attracting new residents to the area. Furthermore, the vast majority of recent buyers were middle-aged (36-49 years) or young adults (18-35), suggesting that first-time buyers and young professionals are entering the property market in Rosebank to take advantage of the convenience and lifestyle offering of the suburb.
Says Dippenaar: “Certainly, the return-to-work trend is picking up, with many large corporates offering flexible hours or even 3-4 days a week in the office, however, there is a call to return to corporate headquarters on some level in most large organisations. Far fewer people are working fully remotely, which is having a positive impact on the demand for accommodation to buy and to rent.
“The headquarters of Standard Bank and several other large corporates are situated in Rosebank, while there is also the Rosebank clinic with its numerous doctors and specialists, so living in the area is ideal for staff.”
Dippenaar says for the younger set, Rosebank Mall and surrounds offer a plethora of eateries and menu options across various price ranges, as well as coffee shops, while the Gautrain Station is also a significant advantage for those commuting into Johannesburg’s inner city, or out towards Tshwane.
“The vast majority of residential sales fall into the R1 million to R2 million price category, which will acquire a loft, one-bedroom or two-bedroom apartment, although there are other, more upmarket apartments selling from R2 million to around R3.5 million and beyond. There are also luxury penthouse units in the newer-built apartment complexes, which sell for over R3 million,” says Dippenaar.
“Generally, across the suburb, prices per square metre average at R26 500, but the range is from R12 500 in older buildings to over R38 000 per square metre in newer, serviced apartment buildings.
“For example, Deeds Office records across the marketplace reveal that a serviced penthouse apartment in The Tyrwhitt sold for R8.2 million in early 2023 and another at Park Central for R8 million in early 2024.
“In some circumstances, working professionals residing in the Western Cape or Eastern Cape require a ‘base’ in Johannesburg for partial use, and Rosebank is an excellent option in this regard. They will sometimes buy, or rent an apartment.”
Dippenaar adds that two-bedroom, two-bathroom apartments have long been the sweet spot for buy-to-rent investment, although there is also an appetite for one-bedroom and three-bedroom apartments.
“Apartments with reasonable levies are always attractive to buy-to-let investors. Rosebank offers are host of suitable apartment complexes, with many of the newly developed apartment complexes also offering their own amenities such as gym, conference rooms and swimming pools over and above all of the amenities available in the immediate locale.
“Investors will consider apartments at entry-level pricing which attracts young professionals, or even students who are at the universities in Johannesburg, as well as higher priced units in complexes with more amenities or services, as those will attract corporate tenants.”
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