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 property market in 2025 presents a compelling opportunity for both investors and homebuyers seeking moderate growth and solid rental yields.
The North Coast areas like uMhlanga and Ballito lead the market with annual growth rates of 25-30% over five years, while rental yields across the city average 7-11%, making it an attractive alternative to Cape Town and Johannesburg. With property prices ranging from R350,000 for central apartments to R15 million for luxury North Coast homes, Durban offers options across all budgets while maintaining strong fundamentals for future appreciation.
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 moderate price growth driven by demand for secure estates and coastal living, with the North Coast leading both appreciation and rental yields.
Rental yields average 7-11% in central and coastal areas, with apartments typically yielding more than houses or townhouses.
| Property Aspect | Current Status | Investment Outlook |
|---|---|---|
| Average Price Growth (5 years) | 19% market-wide, 25-30% North Coast | 3.6-5% annual growth expected |
| Rental Yields | 7-11% gross yields | Apartments outperform houses |
| Best Investment Areas | uMhlanga, Ballito, Sibaya | 6-8%+ growth potential |
| Entry-Level Budget | R350,000 - R1,000,000 | Strong affordability vs other metros |
| Time to Sell | 45 days (improved from 60+) | Market liquidity improving |
| Transaction Costs | 8-10% above purchase price | Competitive with SA cities |
| Financing Options | Prime rate 10.75%, trending down | Improving affordability |
How much do properties in Durban cost right now, broken down by area and property type?
Property prices in Durban vary significantly based on location and property type, with coastal areas commanding premium prices.
The North Coast areas including uMhlanga, Ballito, and Sibaya represent the most expensive markets, with apartments ranging from R1.5 million to R10 million and houses from R4 million to R15 million. La Lucia averages R4.7 million with high-end properties reaching R25 million.
Durban North offers slightly more affordable options with average prices of R3.9 million, while luxury homes can reach R8-18 million. Central Durban presents the most budget-friendly options, with apartments starting from R350,000 in the CBD, while Berea and Morningside average R1.2-1.3 million.
Inland areas like Kloof and Hillcrest offer homes in the R970,000 to R1.3 million range, with monthly rentals between R9,000-12,500.
| Area | Average Apartment Price | Average House Price | Rental (2-3 bed) |
|---|---|---|---|
| uMhlanga | R1.2m+ | R4m-R15m | R24,000/month |
| Durban North | R1.2m-R1.6m | R3.9m-R18m | R12,000-R18,000/month |
| Morningside | R1.2m | - | R8,000/month |
| Central CBD | R350k-R1.1m | - | R7,000-R12,000/month |
| Kloof | R979k-R1.3m | - | R12,500/month |
How have property prices in Durban changed over the past five years, and what's the short-term trend?
Durban property prices experienced a brief stagnation in 2020-2021 due to pandemic effects and civil unrest impacts.
From 2022 onwards, growth resumed strongly with Durban property values increasing 19% over five years market-wide. The North Coast areas significantly outperformed with growth of 25-30%, while some inland areas experienced stagnation.
The short-term trend shows the market regaining strength with time-to-sale improving from 60+ days to 45 days, and city center sales up 9% in the last year. As of September 2025, the market momentum continues to build.
It's something we develop in our South Africa property pack.
What are the rental yields like in different neighborhoods of Durban today?
Rental yields in Durban are among the most attractive in South Africa, averaging 7-11% across different neighborhoods.
Central Durban, Berea, and Morningside offer gross yields of 7-9%, while uMhlanga apartments deliver 8-9% on prime units with 1-bedroom apartments yielding 9% and 2-bedroom units 8.6%. Amanzimtoti and Pinetown can deliver up to 12% for smaller apartments.
Inland areas and gated estates typically yield 6-8% gross, with net yields approximately 2% lower when expenses and voids are factored in. The highest yields are concentrated in well-located apartment buildings near business nodes and transport links.
How do rental yields compare between apartments, houses, and townhouses in Durban?
Apartments consistently outperform houses and townhouses in terms of rental yields across Durban.
| Property Type | Average Yield (%) | Hotspot Neighborhoods |
|---|---|---|
| Apartment (1-bed) | 9-13% | Central Durban, uMhlanga |
| Apartment (2-bed) | 8-11% | Amanzimtoti, Pinetown |
| Townhouse | 6-9% | Glenwood, Upper Highway |
| Freestanding House | 6-8% | North Coast, La Lucia, Hillcrest |
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 are the forecasts for Durban property values in the next three to five years?
Property value forecasts for Durban through 2027-2030 show continued moderate growth across the market.
Market-wide annual growth is expected to be 3.6-5%, with hotspots in the North Coast and secure estates potentially seeing 6-8%+ annual appreciation. This growth is supported by ongoing infrastructure investment and increasing demand for secure living environments.
The forecasts assume stable political conditions and continued urban renewal investments, with coastal properties likely to maintain premium growth rates due to lifestyle demand and limited supply of premium beachfront developments.
Which areas in Durban are considered growth hotspots, and which ones are stagnating or declining?
Growth hotspots in Durban are clearly concentrated in coastal areas and select inland suburbs.
Growth Areas:
- uMhlanga - Infrastructure investment and corporate presence driving demand
- Ballito - Coastal lifestyle and new developments attracting buyers
- Sibaya Precinct - Major mixed-use development creating value
- Glenwood - Trendy suburb with urban renewal projects
- Upper Highway (Hillcrest, Kloof) - Family-friendly areas with good schools
Stagnating/Declining Areas:
- Durban Central (outside CBD regeneration zones) - Limited investment and infrastructure concerns
- Durban Point - Values up only 8% in 10 years, underperforming market
- Some inland suburbs - Lack of investment and infrastructure development
- Areas with municipal service delivery issues - Water and electricity reliability concerns
What are the risks to property values in Durban in the short term, such as economic or political factors?
Several risk factors could impact Durban property values in the short term, primarily related to infrastructure and governance.
Municipal rate hikes of up to 6.5% present immediate cost pressures for property owners, while infrastructure unreliability including water and power outages can dampen buyer sentiment in affected areas. Political uncertainty at national and local levels may impact investor confidence.
However, city-wide spending on urban renewal projects provides support for inner-city and new mixed-use precincts, partially offsetting these concerns. The risk level varies significantly by area, with secure estates and well-managed developments less exposed to municipal service issues.
It's something we develop in our South Africa property pack.
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 do transaction costs, taxes, and ongoing expenses compare between different property types in Durban?
Transaction costs in Durban are standardized across property types but vary based on property value and financing requirements.
Total purchase costs typically amount to 8-10% above the property price, including bond registration, transfer duty, and legal fees. Transfer duty is exempt for properties under R1,210,000, with scaled rates above this threshold reaching up to 13% for properties over R13.3 million.
Ongoing expenses vary significantly by property type. Sectional title apartments typically have monthly levies of R900-2,500, while freestanding houses require separate payments for municipal rates, insurance, and maintenance. Capital gains tax may apply if properties are held for less than two years.
What's the average time it takes to resell a property in Durban, and how do resale values vary by area?
The average time to resell property in Durban has improved significantly, now averaging 45 days compared to 60+ days in 2024.
Resale values show the highest appreciation in coastal precincts and secure estates, with limited growth in some inland areas. Properties in uMhlanga, Ballito, and other North Coast areas typically sell faster and command premium resale values due to consistent demand.
Central Durban properties may take longer to sell unless they're in regeneration zones or offer exceptional value, while well-maintained properties in established suburbs generally achieve fair market values within the average timeframe.
How do affordability and financing options look for buyers entering the Durban market today?
Durban property remains more affordable than Cape Town and Johannesburg for comparable units, making it attractive for first-time buyers and investors.
The current prime lending rate of 10.75% is trending downward, improving affordability conditions. Mortgages are available up to 90-100% for South African citizens, while non-residents can access up to 50% financing requiring larger cash deposits.
Entry-level options start from R650,000-1,000,000 for studio and one-bedroom units in inland areas or the CBD, while coastal properties typically require budgets from R1.5 million upward. The improving interest rate environment supports buyer activity across all segments.
If you want to buy for personal living, which areas and property types make the most sense right now?
For personal occupancy, the best areas depend on lifestyle preferences and family requirements.
Secure North Coast estates in uMhlanga and La Lucia offer the best combination of lifestyle, security, and capital appreciation for professionals and families willing to pay premium prices. Leafy inland suburbs like Kloof and Hillcrest provide excellent value for families seeking good schools and community amenities at lower costs.
Sectional title apartments work well for singles and couples seeking convenience and security, while houses and townhouses suit families requiring more space and privacy. Entry-level buyers should consider R650,000-1,000,000 properties in inland areas or CBD locations with regeneration potential.
If you want to buy to rent out or resell later, what budget, area, and property type should you focus on?
For investment purposes, apartments and townhouses in specific areas offer the best risk-adjusted returns.
Focus on properties in uMhlanga, Ballito, Glenwood, and Berea with budgets between R900,000-2,000,000 for optimal rental yield potential. One and two-bedroom units near beaches and business nodes provide the highest occupancy rates and rental yields.
Secure developments and properties suitable for student accommodation offer steady yields with high occupancy rates. Target properties that combine good rental yields (8-11%) with capital appreciation potential in growth corridors and established areas with strong infrastructure.
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 in 2025 represents a compelling opportunity for both investors and homebuyers seeking moderate growth, solid rental yields, and good value relative to South Africa's other major metros.
The key to success lies in focusing on secure, well-located properties in growth corridors and established areas with strong infrastructure and municipal service delivery.
Sources
- The AfricanVestor - Durban Price Forecasts
- The AfricanVestor - Best Areas to Invest in South Africa 2024
- Global Property Guide - South Africa Rent Yields
- The AfricanVestor - Durban Property
- SARS - Transfer Duty Rates
- WiseMove - Cost of Living in Durban
- WiseMove - Most Expensive Suburbs in Durban
- Lightstone - Value Growth Along eThekwini's North Coast