Authored by the expert who managed and guided the team behind the South Africa Property Pack
Everything you need to know before buying real estate is included in our South Africa Property Pack
Durban offers foreigners one of Africa's most accessible property markets, with no ownership restrictions and coastal homes starting from around R1.5 million in 2026.
We constantly update this article to reflect the latest Durban housing prices, interest rates, and foreign buyer regulations.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Durban.
Insights
- Foreigners buying property in Durban in 2026 can secure mortgages up to 50% of property value from local banks like FNB, Absa, and Standard Bank, but must fund the rest from abroad.
- The transfer duty exemption threshold in Durban increased to R1,210,000 from April 2025, meaning buyers of entry-level properties pay zero transfer duty on their first R1.21 million.
- Durban's North Coast areas like Umhlanga and Ballito are seeing 7-10% annual price growth, outpacing the citywide average of 5-6% in 2025.
- The prime lending rate in South Africa dropped to 10.25% in November 2025, making mortgage payments roughly R168 per month cheaper on every R1 million borrowed compared to mid-2024.
- Non-resident sellers in Durban face a 7.5% withholding tax on the sale price when selling property valued above R2 million, which is credited against their final capital gains tax bill.
- Durban apartments deliver rental yields of 8-13% annually in 2026, with the city average sitting at 10.68%, higher than Cape Town's 9.42% average.
- A typical Durban property transfer takes 6-12 weeks from signed offer to registration, with delays most often caused by municipal rates clearance from eThekwini Municipality.
- The D'MOSS environmental overlay in Durban can restrict building alterations even on residential-zoned land, a due diligence item many foreign buyers miss entirely.
- Closing costs in Durban typically run 6-10% of purchase price, with transfer duty becoming the largest component once property values exceed R1.5 million.
What can I legally buy and truly own as a foreigner in Durban?
What property types can foreigners legally buy in Durban right now?
In January 2026, foreigners can legally purchase freehold houses, townhouses, apartments, condos, and even vacant residential land in Durban and have the title deed registered directly in their own name at the Deeds Office.
The most important legal condition is that all funds for the purchase must flow through an authorized South African bank, and you must keep documentation of these inward remittances so you can later repatriate sale proceeds when you sell.
Unlike some countries, South Africa does not impose nationality-based restrictions, ownership quotas, or caps on how much property foreigners can buy, so buyers from the United States, United Kingdom, Germany, or any other country face identical rules to South African citizens.
The practical friction for foreign buyers in Durban is not about legal ownership but rather about banking compliance, exchange control paperwork, and mortgage financing limits that typically cap non-resident borrowing at 50% of property value.
Finally, please note that our pack about the property market in Durban is specifically tailored to foreigners.
Can I own land in my own name in Durban right now?
Yes, foreigners can own land (freehold title) in their own name in Durban, and the title deed is registered at the Deeds Office just like any other property purchase.
This applies to virtually all types of residential land in Durban, though properties allocated for land restitution or reform programs, or land near national borders, may require special permissions that rarely affect typical residential buyers.
The real challenge for foreign land buyers in Durban is ensuring funds are correctly documented through the banking system and checking whether planning overlays like D'MOSS (Durban Metropolitan Open Space System) restrict future building on the plot you want to buy.
As of 2026, what other key foreign-ownership rules or limits should I know in Durban?
As of early 2026, the key rule most foreign buyers overlook is the exchange control requirement that all purchase funds must enter South Africa through an authorized bank with proper documentation, because this paperwork becomes essential when you want to repatriate proceeds after selling the property.
South Africa does not have a foreign-ownership quota system for apartments or condos like Thailand or Mexico, so there is no limit on how many units in a Durban building can be foreign-owned.
Foreign buyers do need to comply with FICA (Financial Intelligence Centre Act) requirements, meaning you must provide identity documents, proof of address, and source-of-funds documentation to your conveyancer before the transaction can proceed.
There are ongoing political discussions about potentially limiting foreign ownership of agricultural land in South Africa, but as of the first half of 2026, no such legislation has been enacted and residential property in Durban remains fully open to international buyers.
What's the biggest ownership mistake foreigners make in Durban right now?
The biggest ownership mistake foreigners make in Durban is failing to properly document their inward remittance of funds through an authorized South African bank, which creates serious problems when they later try to sell the property and repatriate the proceeds.
If you make this mistake, you may find that the South African Reserve Bank requires extensive proof of how funds originally entered the country, and without proper bank records, you could face delays of months or even inability to move your money out of South Africa.
Other classic pitfalls in Durban include skipping due diligence on sectional title body corporate finances (leading to surprise special levies after purchase), ignoring D'MOSS environmental overlays that restrict building alterations, and underestimating coastal flood and storm risks for beachfront properties in areas like Umhlanga and Amanzimtoti.
We have made this infographic to give you a quick and clear snapshot of the property market in South Africa. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Durban?
Do I need a specific visa to buy property in Durban right now?
No, you do not need a specific visa to buy property in Durban in January 2026, and many foreign buyers successfully complete purchases while visiting on a tourist visa or even while residing outside South Africa entirely.
The most common administrative requirement that can slow down foreign buyers without local residency is opening a South African bank account, which is needed to receive and hold funds for the transaction and can require in-person visits to some banks.
You will generally need a South African tax reference number (registration with SARS) if you plan to earn rental income or eventually sell the property, as non-residents are taxable on South African-sourced income and capital gains from local property.
The typical document set a foreign buyer must present includes a valid passport, proof of address (from your home country), bank statements showing source of funds, and any additional FICA documentation your conveyancer requests to comply with anti-money laundering rules.
Does buying property help me get residency and citizenship in Durban in 2026?
As of early 2026, buying property in Durban does not automatically grant you residency or citizenship in South Africa, and there is no "golden visa" program that offers residency in exchange for real estate investment.
If you want to live long-term in Durban, you must pursue a separate immigration route such as a work visa, business visa, retirement visa (for those with sufficient passive income), or financially independent persons visa.
The financially independent persons visa requires proof of a permanent income of at least R37,000 per month (roughly USD 2,000 or EUR 1,850) and may require a refundable cash deposit, but property ownership alone does not qualify you for this or any other visa category.
We give you all the details you need about the different pathways to get residency and citizenship in Durban here.
Can I legally rent out property on my visa in Durban right now?
Your visa status generally does not affect your ability to rent out property you own in Durban, because owning and renting out property is treated as investment activity rather than employment, so even tourists and non-residents can legally earn rental income from their Durban properties.
You do not need to live in South Africa to rent out your Durban property, and many foreign owners manage their rentals remotely through local property managers or estate agents.
The key compliance issue for foreign landlords in Durban is tax: you must declare South African-sourced rental income to SARS, you can deduct allowable expenses like rates, insurance, and bond interest, and when you eventually sell, the buyer may be required to withhold 7.5% of the purchase price as an advance against your capital gains tax if the property exceeds R2 million in value.
We cover everything there is to know about buying and renting out in Durban here.
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How does the buying process actually work step-by-step in Durban?
What are the exact steps to buy property in Durban right now?
The standard sequence to buy property in Durban involves signing an Offer to Purchase, submitting FICA documents and proof of funds to your conveyancer, paying a deposit into the attorney's trust account, waiting for bond approval if financing, obtaining municipal rates clearance from eThekwini, signing transfer documents, and finally registering the transfer at the Deeds Office.
You do not need to be physically present for most steps in Durban, as documents can often be signed remotely via power of attorney arrangements that your conveyancer will set up, though some banks may require in-person meetings for mortgage applications.
The deal becomes legally binding in Durban when both buyer and seller sign the Offer to Purchase (also called the Agreement of Sale), though most offers include suspensive conditions like obtaining financing that must be fulfilled before the contract becomes unconditional.
The typical end-to-end timeline from accepted offer to final registration in Durban is 6-12 weeks, with delays most commonly caused by bond approval, municipal rates clearance from eThekwini Municipality, or missing documentation from either party.
We have a document entirely dedicated to the whole buying process our pack about properties in Durban.
Is it mandatory to get a lawyer or a notary to buy a property in Durban right now?
Yes, in Durban (and all of South Africa), you must use a conveyancing attorney to transfer property, because only qualified conveyancers are legally authorized to lodge transfer documents at the Deeds Office under the Deeds Registries Act.
The key difference from some other countries is that South Africa does not use notaries for standard property transfers; instead, the conveyancer handles everything from drafting transfer documents to obtaining clearances and registering the transfer, combining what would be notary and lawyer functions elsewhere.
When engaging a conveyancer in Durban, ensure their scope explicitly includes obtaining the rates clearance certificate from eThekwini Municipality, checking for any body corporate levies due on sectional title properties, and coordinating with the bond registration attorney if you are financing the purchase.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Durban?
How do I verify title and ownership history in Durban right now?
The official authority to verify title and ownership history in Durban is the Deeds Office, and your conveyancer will conduct a deeds search through the DeedsWEB system to confirm the current registered owner, property description, and any registered bonds or servitudes.
The key document you should request is a copy of the title deed, which proves current ownership and contains the legal description of the property (erf number for freehold or scheme and unit details for sectional title).
A reasonable look-back period for ownership history checks in Durban is 10-20 years, which helps identify any unusual patterns like frequent transfers that might suggest disputes, or older servitudes that could affect your use of the property.
One clear red flag that should stop or pause your purchase is discovering an unresolved bond registered against the property that the seller claims does not exist, or finding a pending legal dispute or executor's estate involvement that has not been disclosed.
You will find here the list of classic mistakes people make when buying a property in Durban.
How do I confirm there are no liens in Durban right now?
The standard way to confirm there are no liens or encumbrances on a Durban property is through a deeds search conducted by your conveyancer, which reveals any registered mortgage bonds, servitudes, or other encumbrances on the title.
The most common type of lien foreign buyers should specifically ask about in Durban is a registered mortgage bond from the seller's bank, which must be cancelled on transfer, along with any outstanding municipal rates or body corporate levies that create statutory liens.
The best written proof of lien status is the deeds search printout from DeedsWEB combined with a rates clearance certificate from eThekwini Municipality and a levy clearance certificate from the body corporate (for sectional title properties), all of which your conveyancer obtains as part of the standard transfer process.
How do I check zoning and permitted use in Durban right now?
The authority to check zoning and permitted use in Durban is the eThekwini Municipality's Planning and Development Department, which maintains zoning records and can provide zoning certificates confirming what activities are permitted on your property.
The key document that confirms zoning classification is a zoning certificate or land use confirmation letter from eThekwini, which states the current zoning category (such as residential, mixed use, or commercial) and any special conditions.
The most common zoning pitfall foreign buyers miss in Durban is the D'MOSS (Durban Metropolitan Open Space System) environmental overlay, which can restrict building alterations and extensions even on properties that appear to have straightforward residential zoning, particularly in areas near rivers, wetlands, or the coastline.
Buying real estate in Durban can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Durban, and on what terms?
Do banks lend to foreigners for homes in Durban in 2026?
As of early 2026, South African banks do lend to foreigners for home purchases in Durban, though the terms depend significantly on whether you are a non-resident living abroad or a foreign national working and living in South Africa.
For non-residents (foreigners living outside South Africa), the typical loan-to-value range is 40-50%, meaning you must fund at least 50-60% of the purchase price plus all transaction costs from abroad through documented foreign remittances.
For foreign nationals living and working in South Africa with valid work permits, banks may offer higher LTVs of up to 75%, as these buyers can demonstrate local income and employment, which reduces the bank's risk profile.
You can also read our latest update about mortgage and interest rates in South Africa.
Which banks are most foreigner-friendly in Durban in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Durban are FNB (with its Foreign Choice product), Absa (through its International Mortgages unit), and Standard Bank (which has explicit non-resident banking and property funding offerings).
What makes these banks more foreigner-friendly is that they have dedicated teams experienced with non-resident documentation, established processes for dealing with foreign income verification, and clear product pages explaining their requirements rather than treating each foreign application as an exception.
These banks will lend to non-residents who live outside South Africa, though typically at lower LTVs (around 50%) and with requirements for documented foreign income and bank statements proving your ability to service the loan from abroad.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Durban.
What mortgage rates are foreigners offered in Durban in 2026?
As of early 2026, foreign buyers in Durban typically receive mortgage rates ranging from prime plus 0.5% to prime plus 2%, which translates to roughly 10.75% to 12.25% based on the current prime rate of 10.25%, with the exact rate depending on your risk profile and deposit size.
South African home loans are almost exclusively variable-rate products priced as a spread above or below prime, so there is little difference between "fixed" and "variable" options; what matters is negotiating the best spread, and foreigners with strong documentation and larger deposits can sometimes achieve rates closer to prime or even slightly below.
We made this infographic to show you how property prices in South Africa compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Durban?
What are the total closing costs as a percent in Durban in 2026?
In Durban in 2026, total closing costs for property purchases typically range from 6% to 10% of the purchase price for transactions not subject to VAT (which covers most resale residential properties).
The realistic low-to-high range accounts for the progressive nature of transfer duty: properties below R1,210,000 pay zero transfer duty, while higher-value properties face rates climbing from 3% to 13% on amounts above this threshold.
The specific fee categories that make up closing costs in Durban include transfer duty (paid to SARS), conveyancing attorney fees, Deeds Office registration fees, bond registration costs (if financing), and rates clearance figures from eThekwini Municipality.
Transfer duty is usually the biggest contributor to closing costs in Durban once property values exceed R1.5 million, while for lower-value properties, conveyancing fees and bond registration costs become more significant proportionally.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Durban.
What annual property tax should I budget in Durban in 2026?
As of early 2026, you should budget approximately 0.8% to 1.6% of your property's municipal valuation per year for rates and baseline services in Durban, which for a property valued at R2 million translates to roughly R16,000 to R32,000 annually (approximately USD 880 to 1,760 or EUR 800 to 1,600).
Annual property tax in Durban is assessed through eThekwini Municipality's rates system, which applies a rate in the rand to your property's municipal valuation, with the exact tariffs published in the municipal Tariff Book each financial year.
How is rental income taxed for foreigners in Durban in 2026?
As of early 2026, rental income from Durban property is taxable at standard South African income tax rates for non-residents, with the effective rate depending on your total taxable income but potentially ranging from 18% to 45% after allowable deductions for expenses like rates, insurance, bond interest, and maintenance.
Non-resident landlords must register with SARS and file annual returns declaring their South African-sourced rental income, and can claim deductions for expenses directly related to earning that income, though there is no withholding tax on rental payments themselves.
What insurance is common and how much in Durban in 2026?
As of early 2026, building insurance for a freehold home in Durban typically costs 0.15% to 0.35% of the rebuild value annually, which for a home with a R2.5 million rebuild value translates to roughly R3,750 to R8,750 per year (approximately USD 210 to 480 or EUR 190 to 440).
The most common property insurance coverage in Durban is building insurance (also called homeowners insurance for freehold properties), which covers the structure against fire, storm damage, flooding, and other perils, while sectional title unit owners typically find building insurance included in their body corporate levies.
The biggest factor that makes insurance premiums higher or lower in Durban is the property's location relative to flood zones and coastal storm exposure, with beachfront and low-lying properties in areas like Umhlanga, Amanzimtoti, and the Point facing higher premiums due to the city's subtropical climate and occasional severe weather events.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Durban, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| South African Revenue Service (SARS) | Official government tax authority publishing transfer duty rates and tax guidance. | We used SARS to calculate the 2025/26 transfer duty brackets. We anchored our closing costs estimates on their published rates. |
| South African Reserve Bank (SARB) | Central bank responsible for monetary policy and interest rate decisions. | We used SARB's November 2025 MPC statement to establish the repo rate at 6.75% and prime at 10.25%. We based mortgage rate estimates on this official benchmark. |
| South African Deeds Office | Official authority for property registration and title verification in South Africa. | We used the Deeds Office to explain property ownership mechanics and title verification. We referenced their registry system for due diligence procedures. |
| eThekwini Municipality | Durban's local government authority for rates, zoning, and municipal services. | We used eThekwini's tariff publications to estimate annual property taxes. We referenced their planning documents for Durban-specific zoning information. |
| STBB Attorneys | Specialist South African conveyancing law firm with published non-resident guides. | We used their practitioner brochures to detail the foreign buyer transaction process. We cross-checked financing norms for non-residents against their guidance. |
| FNB Foreign Choice | Major South African bank with a dedicated foreign buyer mortgage product. | We used FNB to confirm banks actively serve foreign buyers. We listed them as a foreigner-friendly lender based on their explicit product offering. |
| Absa International Mortgages | Major bank with a dedicated international mortgages unit for foreign buyers. | We used Absa to validate mortgage availability for non-residents. We included them in our foreigner-friendly bank recommendations. |
| Standard Bank | One of South Africa's largest banks with explicit non-resident banking services. | We used Standard Bank's non-resident positioning to support financing options. We referenced their property funding notes for foreign buyer loan structures. |
| South African Government Portal | Official government website explaining public services and procedures. | We used the government portal to cross-check deeds registration procedures. We verified property-related government services through their official explainers. |
| Santam Insurance | Major South African insurer with published guidance on property insurance. | We used Santam to explain sectional title vs freehold insurance structures. We based our insurance cost ranges on market estimates from insurers. |
| eThekwini D'MOSS Documentation | Official municipal environmental planning documents for Durban. | We used D'MOSS FAQs to highlight Durban-specific development restrictions. We included this as a key due diligence item foreign buyers often miss. |
| PwC Tax Summaries | Professional services firm providing detailed South African tax analysis. | We used PwC to verify capital gains tax and rental income taxation for non-residents. We cross-referenced withholding tax percentages with their summaries. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Africa. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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