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's residential property market is showing steady growth with apartment prices averaging R1.1-1.6 million and house prices around R1.1 million citywide. The market experienced 5-6% price growth in the past year with coastal areas outperforming at 7-10% annually.
Property values are expected to continue rising at 4-6% annually through 2030, driven by strong buyer demand, new development projects worth billions, and stable rental yields averaging 10.67%. Major infrastructure investments and new housing developments are reshaping the market landscape.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Africa, based on reliable facts and data, not opinions or rumors.
Durban's property market shows solid fundamentals with 5-6% annual price growth and properties selling in 45 days on average.
Rental yields of 10.67% match national averages while new developments worth R15+ billion are planned or underway across the city.
| Market Metric | Current Status | Trend Direction |
|---|---|---|
| Average Apartment Price | R1.1-1.6 million | ↑ 5-6% annually |
| Average House Price | R1.1 million citywide | ↑ 5-6% annually |
| Rental Yield | 10.67% gross | → Stable |
| Time to Sell | 45 days average | ↓ Fast market |
| Vacancy Rate | ~5% (national avg) | ↓ Declining |
| New Developments | 18,500+ units planned | ↑ Strong pipeline |
| Interest Rate | 10.75% prime | ↓ Down from 11.75% |
What's the current average price for residential properties in Durban, both for apartments and houses?
As of September 2025, Durban's residential property prices vary significantly by property type and location.
For apartments, the citywide average ranges from R1.1 million to R1.6 million, with standard units typically falling within this bracket. Premium locations like uMhlanga command much higher prices, with entry-level apartments starting at R1.5 million and luxury units reaching up to R10 million.
Houses in Durban have an average price of approximately R1.1 million across the city. However, affluent neighborhoods such as Durban North, La Lucia, and Umhlanga see significantly higher averages of R3.9 million to R5.2 million. Luxury homes in these prime areas regularly exceed R10 million.
The coastal areas consistently command premium pricing due to their desirability and limited supply. Sectional title properties (apartments) have shown stronger performance recently due to increasing demand for secure, lock-up-and-go lifestyle options.
It's something we develop in our South Africa property pack.
How have property prices in Durban changed over the past 12 months in percentage terms?
Durban's residential property market experienced solid growth from mid-2024 to mid-2025, with prices increasing by 5-6% across the city.
The coastal and luxury neighborhoods outperformed the citywide average significantly, recording annual growth rates of 7-10%. Areas like the North Coast, uMhlanga, and Sibaya led this growth due to strong demand from both local buyers and investors seeking premium lifestyle properties.
Sectional title properties (apartments) slightly outperformed freestanding houses during this period. This trend reflects changing buyer preferences toward secure, low-maintenance living options with built-in security features and communal amenities.
The 5-6% growth rate exceeds South Africa's current inflation rate, indicating real value appreciation for property owners. This performance positions Durban favorably compared to other major South African cities during the same period.
What is the expected annual growth rate in property values for Durban over the next 3 to 5 years?
Property market forecasts predict annual increases of 4-6% for Durban residential properties through 2030.
The strongest growth is expected in coastal and upmarket areas, which should continue to outperform the broader market. These premium locations benefit from limited supply, strong lifestyle appeal, and consistent investor interest.
Most citywide areas are projected to experience moderate growth of 2.5-5% annually, roughly tracking or slightly outpacing inflation. Top-end nodes and new development corridors are expected to outperform these baseline projections.
These forecasts assume stable economic conditions and continued infrastructure investment in the region. The growth rates reflect a maturing market with steady demand fundamentals rather than speculative bubbles.
How many new housing developments or construction projects are planned or currently underway in Durban?
Durban has a substantial development pipeline with multiple large-scale projects underway or in planning stages.
| Development Area | Planned Units | Investment Value |
|---|---|---|
| Umhlanga Corridor | 6,000 units | Multi-billion rand |
| Pinetown Investment Corridor | 12,500 units | Multi-billion rand |
| Westown Mixed-Use | Part of larger project | R15 billion |
| Shongweni Eco Park | Multiple phases | R15 billion (combined) |
| Various Coastal Projects | Multiple developments | Significant investment |
What is the current average rental yield in Durban, and how has it compared to national averages?
As of September 2025, Durban apartments generate an average gross rental yield of 10.67%.
This yield closely matches the national average of 10.36%, positioning Durban as competitively aligned with broader South African rental market performance. The city neither significantly outperforms nor underperforms national benchmarks.
Occupancy rates and tenant demand remain stable across Durban's rental market. Coastal regions generally provide better yield stability compared to inner-city areas, though both sectors maintain healthy rental demand.
The rental market benefits from Durban's position as a major economic hub, attracting both local and international tenants seeking quality accommodation in secure developments.
How many properties are currently listed for sale in Durban compared to the same time last year?
Approximately 7,700 residential properties are actively listed for sale in Durban as of August 2025.
This represents a modest increase of 3-5% compared to the same period in 2024, reflecting increased activity from both developers and private sellers. The higher listing volume indicates healthy market activity rather than distressed selling.
Most current listings consist of mid-market and sectional title properties, with luxury property supply remaining relatively tight. This distribution suggests continued strong demand for premium properties while providing good options for mainstream buyers.
The increased listing activity correlates with new development completions and owners capitalizing on favorable market conditions to trade up or relocate.
Don't lose money on your property in Durban
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the average time it takes for a property in Durban to sell once it's listed on the market?
Properties in Durban take an average of 45 days to sell when reasonably priced, as of 2025.
Homes in high-demand neighborhoods sell significantly faster, typically within 20-30 days of listing. These quick sales occur primarily in coastal areas, secure estates, and well-located sectional title developments.
This 45-day average is notably below the national average of 10-12 weeks, highlighting robust buyer demand in Durban's most sought-after areas. The faster selling times indicate healthy market liquidity and active buyer participation.
Properties that are accurately priced and well-presented to the market benefit from competitive bidding situations, particularly in premium locations where supply remains constrained.
How are mortgage interest rates and lending conditions affecting buyer activity in Durban right now?
The prime lending rate currently sits at 10.75%, down from the previous 11.75%, improving affordability for potential buyers.
This rate reduction has attracted more first-time buyers and investors back to the market, creating increased competition for well-priced properties. However, municipal rate hikes and higher transfer costs are constraining activity in the lower-end market segments.
Bank lending remains stable but cautious, with financial institutions maintaining deposit requirements and conducting thorough affordability assessments. Qualification criteria haven't relaxed significantly despite the rate improvements.
The improved interest rate environment particularly benefits buyers of higher-value properties where the monthly payment impact is more substantial. It's something we develop in our South Africa property pack.
What percentage of property sales in Durban are being driven by first-time buyers versus investors?
First-time buyers are showing strong activity in Durban's property market, particularly in new sectional title developments and affordable housing segments.
Investor participation remains significant, especially in luxury properties and vacation rental markets along the coast. Areas like uMhlanga, Ballito, and the North Coast see higher investor concentrations due to their rental potential and capital appreciation prospects.
The mix varies considerably by price range and location, with entry-level properties seeing more first-time buyer activity, while premium coastal properties attract proportionally more investor interest. Both local and foreign investors remain active in the luxury segments.
The current interest rate environment and stable market conditions are encouraging both buyer categories to remain active in their respective market segments.
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.
How does population growth or migration into Durban compare to housing supply growth in recent years?
Durban's population continues growing, driven primarily by migration from smaller towns and other provinces where people seek better job opportunities and lifestyle amenities.
Housing supply growth is largely keeping pace with demand in luxury and new development corridors, where major projects are adding thousands of units to the market. These high-end segments are well-served by current development activity.
However, the entry-level and affordable housing segments lag somewhat behind population growth and demand. This supply-demand imbalance creates upward pressure on prices in the more affordable market segments.
The ongoing infrastructure investments and new development projects are designed to address these supply gaps, though the timeline for delivery varies by market segment and location.
What is the current vacancy rate for rental properties in Durban, and how has that trended over the past two years?
Current rental vacancy rates in Durban are stable and trending low, at approximately 5.1%, matching the national average.
Vacancy rates have decreased over the past two years, declining from about 7% to the current 5% in key Durban markets. This downward trend indicates strengthening rental demand and improving market fundamentals.
Modern and secure developments experience particularly low vacancy rates due to high tenant demand for quality accommodation with security features and amenities. These properties often have waiting lists for available units.
The low vacancy environment supports stable rental income for property investors and provides confidence for continued investment in rental property development.
What risks or external factors are expected to impact Durban's property market over the next few years?
1. **Economic Risks**: National economic volatility, inflation pressures, and potential changes in lending regulations could affect buyer confidence and affordability2. **Infrastructure Challenges**: Load shedding (power cuts), municipal service delivery issues, and infrastructure maintenance backlogs pose ongoing operational risks3. **Municipal Costs**: Rising municipal rates and taxes increase the total cost of property ownership, particularly impacting rental yields4. **Energy Security**: Ongoing electricity supply uncertainties may drive demand for properties with backup power solutions5. **Immigration Policy**: Changes to visa rules or foreign investment regulations could affect international buyer participationPositive external factors include over R60 billion in regeneration funding earmarked for Durban, continued foreign investment inflows, and growing demand for off-grid and sustainable property developments.
The infrastructure investments, including port upgrades and urban renewal projects, should support long-term property value growth despite short-term challenges. It's something we develop in our South Africa property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Durban's property market presents solid fundamentals with steady growth prospects and competitive rental yields matching national averages.
The combination of infrastructure investment, new development activity, and stable buyer demand supports the positive medium-term outlook, though buyers should consider the various economic and infrastructure risks when making investment decisions.