This according to Luxury Defined, an in-depth report compiled by Christies International Real Estate to analyse trends shaping the luxury residential real estate market globally.
The report, which defines 'luxury' as being a home costing approximately $750,000, confirms that the sales growth in Durban's luxury home market during 2013/14 has increased by an impressive 50%.
Chris Tyson, CEO of Tyson Properties, the only Christies International Real Estate affiliate in KwaZulu-Natal, cites a supply shortage in homes as well as relatively low interest rates as factors in driving growth in the luxury property market. In addition, there is a recent trend of new homes being built to satisfy demand, making Durban an appealing investment option for 2015 and beyond.
The city was listed along with Puerto Rico, Canary Islands, Turks and Caicos Islands, Saint-Jean-De-Luz (France), Costa Rica and Telluride (Colorado). Further reiterating Durban's investment appeal, news source CNN recently voted Durban as one of the world's top ten most underrated cities, predicting that Durban will be this year's fastest growing city in Africa and the second-fastest growing tourism city of the 132 cities surveyed worldwide. Durban has also been featured globally on the Smart Cities Programme as one of the top 18 places to live, ultimately attracting international interest to further boost the luxury market.
"Luxury sales in Durban's affluent suburbs are on the increase as buyers are returning to the security of long-term investments in the residential property market. This combined with unprecedented growth, unique lifestyle, great weather, strong local business sector and easy accessibility has really bolstered high-end prices within the greater city," says Tyson.
Shaun Rademeyer, of BetterLife Home Loans, corroborates this finding, noting an exponential increase in the number of bond registrations in the Durban area, year-on-year, for properties in the over R7m category.
"It's a great achievement for Durban to gain recognition from global market research. Durban has a lot to offer to investors and tourists - in terms of its cosmopolitan city and beach combination, infrastructure and aesthetics. This insight bodes for the Durban property market as a whole," concludes Tyson.
