North Coast Property Market: A Mid-Year Review and Future Outlook

North Coast Property Market: A Mid-Year Review and Future Outlook

 

As we head into the second half of 2024, it's the perfect time to reflect on the performance and trends in the North Coast property market. We have noticed a marked improvement in activity over the second half of 2023 despite headwinds in the broader South African economy, driven by what we believe are the following key factors.

 

1. Robust Market Demand:

The North Coast has maintained strong demand for residential properties, spurred by a combination of the unique lifestyle that it offers, alongside a growing economic machine as we see the development of new commercial and industrial nodes.

The unmatched climate and scenic beauty is a strong attracting factor and the proximity to King Shaka International Airport and the heavy private investment in infrastructure has made the North Coast a prime location for the growing semigration market.

The diverse selection of world class gated estates continues to add value to the market, and we see this continuing as the likes of Seaton, Zululami and Elaleni push forward towards completion of their latest phases of development.

 

2. Increased Development:

In the first half of 2024 we have seen a surge in new building projects, both in the residential and in the commercial and industrial markets. A drive through Zululami and Elaleni shows a hub of activity as homes are being built and completed at an incredible pace and we are starting to see action in the secondary market as these completed homes are starting to trade as resales.

North Point is a similar case in point on the commercial and industrial side, and promises to be the heart of the economic engine that drives the North Coast over the coming years.

 

3. Rental Market Dynamics:

The rental market has also shown incredible strength, driven largely by the relatively high cost of borrowing. With consistent demand from young professionals and families who are moving into the area for the first time, this demand is likely to continue in the short to medium term.

 

As we move into the second half of the year we are looking at the following key factors with interest: 

1. Continued Demand:

We expect the strong demand for properties to persist, buoyed by the recent outcome of the government elections. The trend of semigration, where families from inland look for more secure, lifestyle-based areas in which to live, will continue to add to demand as the year progresses. We have also seen a marked increase in interest from offshore buyers, both expat South Africans and foreigners and this adds to demand in the area.

 

2. Investment Opportunities:

With the promise of a return to economic stability and government-backed infrastructure development, and the aforementioned continued growth in demand we anticipate there to be a range of new investment opportunities in the property market.

Strong long term rental demand creates a healthy pipeline of prospective tenants for investment property owners and with the growing tourism trade in the area, short term rentals add a second opportunity for landlords to generate returns on their investment properties.

 

3. Community and Lifestyle:

Developers will increasingly focus on creating community-centric environments for their residents. Amenities such as running and riding trails, sports and recreational facilities, and social spaces will be integral to new developments, enhancing the overall quality of life for residents.

 

The North Coast of KwaZulu-Natal continues to be a dynamic and appealing property market. The first half of 2024 has demonstrated resilience and growth, setting a positive tone for the remainder of the year. With all of the lifestyle factors that the North Coast offers, along with continued demand, a focus on community living and best in class estate living, the North Coast is poised for an exciting second half of the year.

Whether you're looking to buy, sell, rent or invest, Home Ground Real Estate is your go-to boutique agency to assist you to make the most of all that the incredible North Coast has to offer.

Stay tuned to our blog for more updates and insights into the North Coast property market. If you're considering a move or investment in this beautiful region, our team here at Home Ground is here to assist you every step of the way.