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What do the latest numbers reveal about Durban’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Durban, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Properties in Durban now stay on the market for an average of 45 days in 2024
In 2024, the average time a property stayed on the market in Durban dropped to 45 days.
This shift is largely due to the recovery of the residential property market in popular areas like uMhlanga and Durban North. In these neighborhoods, homes sold within 20 to 30 days when priced right, often fetching 95% of the asking price. This quick turnover highlights the importance of accurate pricing.
When properties are priced correctly, they sell faster, which is a key factor in the reduced average market time. Conversely, homes priced 10% above their true market value lingered longer and only managed to achieve 80% of the asking price. This underscores the necessity of setting a competitive price to attract buyers swiftly.
High demand and limited supply in these areas have made them appealing to both local buyers and investors from Johannesburg. This surge in interest and competition among buyers has likely sped up sales, further decreasing the time properties stay on the market.
Sources: Pam Golding Properties
2) The average rental price for a two-bedroom apartment in Durban rose by 4% in 2024
In 2024, the average rental price for a two-bedroom apartment in Durban increased by 4%.
This rise is part of a broader trend in the Greater Durban rental market, which has been experiencing growth. According to Maxprop, infrastructure development has made the area more attractive to renters, boosting demand and prices. The appeal of Durban is further enhanced by its popularity among tourists and remote workers, who are increasingly seeking flexible living arrangements in desirable locations.
While Rentola offers detailed insights into rental prices, it doesn't specify the exact 4% increase. However, the general trend of rising prices is evident from the overall market conditions. Factors such as the demand for affordable housing and the economic climate in the region contribute to this upward trend.
Local rental listings from Private Property provide specific property prices but lack a comprehensive view of average price changes. This indicates that while individual listings might show price hikes, a broader market analysis is necessary to confirm the exact percentage change.
Durban's rental market dynamics are shaped by several factors, including infrastructure improvements and lifestyle trends. These elements make the city an attractive option for both long-term residents and those seeking temporary accommodations. As a result, the demand for rental properties continues to grow, influencing price adjustments.
Understanding these market dynamics is crucial for potential property buyers or renters. By considering the factors driving price changes, individuals can make informed decisions about their investments or living arrangements in Durban. The ongoing developments and trends suggest a vibrant and evolving rental market.
Sources: Rentola, Maxprop, Private Property
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.
3) The cost of building a new home in Durban rose by 6% in 2024
The average cost of building a new home in Durban has increased by 6% in 2024.
In South Africa, building costs can range from R6,000 to R20,000 per square meter, influenced by materials, location, and design. Specifically, in KwaZulu-Natal, where Durban is situated, the cost is about R14,860 per square meter, which is on the higher side compared to other regions.
Durban's real estate market is buzzing, thanks to infrastructure development, tourism, and remote work trends. These factors are making the city more attractive, but they also contribute to rising construction costs.
However, it's not all smooth sailing. Rising interest rates and the demand for affordable housing are significant challenges. These issues are pushing construction costs up, adding to the 6% increase.
For potential buyers, understanding these dynamics is crucial. The combination of a growing market and economic challenges means that building a home in Durban is becoming more expensive.
Sources: Maxprop, Local Pros, Caritas Properties
4) The average monthly rent for a one-bedroom apartment in Durban rose by 3% in 2024
In 2024, the average monthly rent for a one-bedroom apartment in Durban increased by 3%.
This uptick is tied to several factors reshaping the rental market. Greater Durban's rental scene was on the rise, thanks to infrastructure development, booming tourism, and the remote work trend. These elements made the area more appealing to both local and international tenants, nudging rental prices upward.
While South Africa's national average rent climbed by 3.8% year-on-year, Durban's unique dynamics played a significant role. The growth in areas like the North Coast attracted investment buyers and tenants craving a coastal lifestyle, further impacting rental costs.
Durban's allure isn't just about the beach; it's about the lifestyle and opportunities. The city's development projects and vibrant culture are drawing in a diverse crowd, from young professionals to retirees, all seeking a slice of coastal living.
Remote work has also changed the game. With more people working from home, there's a growing demand for properties that offer both comfort and connectivity, making Durban a hot spot for those looking to balance work and leisure.
As the city continues to evolve, the rental market is expected to remain dynamic, with ongoing developments and lifestyle trends shaping its future. The combination of investment opportunities and lifestyle appeal keeps Durban on the radar for potential property buyers.
Sources: Maxprop, Property24, Property Review
5) The average cost of renovating a home in Durban rose by 7% in 2024
In 2024, the average cost of renovating a home in Durban increased by 7%.
When you think about renovating a kitchen or bathroom in Durban, you're looking at some hefty expenses. For instance, a small kitchen makeover might set you back anywhere from R50,000 to R100,000. Bathrooms aren't much cheaper, with costs ranging between R40,000 and R70,000. These numbers highlight just how pricey these projects can be.
Now, let's talk about the bigger picture. The property market in South Africa has been a bit of a rollercoaster. Economic conditions and interest rates have kept house prices from growing as fast as inflation. While this doesn't directly affect renovation costs, it does paint a picture of the financial landscape homeowners are navigating.
So, why the 7% hike in renovation costs? It's a mix of the inherent expenses tied to these projects and the economic climate impacting the property market. The combination of these factors makes it clear why homeowners are feeling the pinch.
Sources: JHB Renovators, Property Wheel, Kitchen Pros
Don't buy the wrong property, in the wrong area of Durban
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6) Property prices in Durban's southern suburbs rose by 3% in 2024
The average property price in Durban's southern suburbs increased by 3% in 2024.
This rise can be linked to several factors. The rental market in Greater Durban was on the upswing, driven by infrastructure development, tourism, and remote work trends. These elements made the area more appealing to both renters and buyers, naturally pushing property prices higher.
In nearby areas like uMhlanga and Durban North, the residential property market showed signs of recovery. Homes were selling quickly and close to the asking price, indicating strong demand. This positive trend likely had a ripple effect, influencing the southern suburbs as well.
While specific data for the southern suburbs wasn't detailed, the overall positive outlook for Durban's property market suggests that localized increases in property values were quite possible.
These trends are not isolated. The broader market dynamics in Durban, including increased interest from both local and international buyers, have contributed to this growth.
As the city continues to develop, the southern suburbs are becoming increasingly attractive, with enhanced amenities and lifestyle options drawing more interest.
Sources: Maxprop, Pam Golding, Property24
7) Properties sold in Durban's city center rose by 9% in 2024
In 2024, property sales in Durban's city center jumped by 9%.
This surge is part of a broader trend. According to Property24, sales from July to December 2024 showed a steady rise, hinting at a positive shift in the market. While the data didn't pinpoint the exact 9% increase, it certainly set the stage for a strong year.
Durban's rental market was buzzing with potential in 2024. Thanks to infrastructure upgrades, a booming tourism sector, and the rise of remote work, more people were eyeing properties, anticipating a rental boom. This buzz likely nudged more buyers into the market.
Meanwhile, just north of Durban, the residential market was on fire. Homes were selling fast and fetching prices close to the asking, which likely spilled over into the city center, boosting buyer confidence.
These factors combined to create a perfect storm for property sales in Durban's heart. The city center became a hotspot, attracting both investors and homebuyers eager to capitalize on the momentum.
With these dynamics at play, it's no wonder the city center saw such a notable increase in property transactions. The market conditions were ripe, and buyers were ready to seize the opportunity.
Sources: Property24, Maxprop, Pam Golding
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.