Property

Property investors are snapping up homes in this South African luxury estate

Kirsten Minnaar • 29 July 2025

Luxe Zimbali, a new luxury development in the Zimbali Estate, offers investors limited high-end homes starting from R5.5 million with projected rental returns of up to 18% annually.

Coastal living remains incredibly popular in South Africa, with coastal house price inflation rising to 5.7% in May 2025, according to Lightstone statistics.

Demand for these homes drives strong growth in areas north of Durban, such as uMhlanga and Ballito, where secure estate living is increasingly sought after for lifestyle and investment reasons.

Pam Golding Property Group CEO Dr Andrew Golding said homes in appealing lifestyle estates often enhance value because they offer what the market demands.

“The KZN North Coast strip has proven extremely popular, with areas like Durban North, La Lucia, uMhlanga, Sibaya, and Ballito sought after for their variety of estates,” Golding said.

This region is home to numerous secure, high-end lifestyle estates, explained Gareth Bailey and Carol Reynolds, Pam Golding Properties area principals in the uMhlanga and Durban North areas north of Durban.

David Cameron, the company’s area principal in Ballito, explained that there has always been a leaning towards gated estates in this coastal region, and more are popping up.

“Such is the demand that homes within secure estates command a premium of 30% over freehold homes outside estates,” Cameron said.

Other developments in KwaZulu-Natal are also adding to the province’s investment appeal. This includes a new Club Med resort, which is being built near Balito.

As the first Club Med location in South Africa, the R2 billion luxury resort is expected to drive tourism and boost the local economy.

From July 2026, 400 foreign guests per week, primarily from the French and Belgian markets, are expected to arrive.

“Unlike traditional hotels that gradually build occupancy, Club Med resorts tend to launch with high occupancy due to their strong global following,” the organisation said.

Club Med will open its worldwide reservations in September this year, some 10 months before the official opening.

Luxe Zimbali

The newly built development, Luxe Zimbali, is located along KwaZulu-Natal’s Dolphin Coast in Zimbali, one of South Africa’s most coveted coastal estates.

Luxe Zimbali’s location means that it is ideally placed to benefit from Kwa-Zulu Natal’s burgeoning luxury property market.

Properties are expected to offer investors potential rental income of up to R1.36 million per year. The development offers a selection of 3- and 4-bedroom condos and villas, many with views of the Zimbali Golf Course and the Indian Ocean.

Residents will also have access to a range of amenities, including eight restaurants, seven pools, and proximity to top schools – all within a secure, private environment.

Luxe Zimbali is also located near The Capital Zimbali Hotel, ensuring ongoing demand for short-term rentals and additional booking opportunities throughout the year.

The hotel’s high seasonal demand during peak periods like school holidays and the December-January summer season guarantees the potential for lucrative returns.

Homes come fully equipped with Smeg appliances and a curated furniture collection by Weylandts, making it convenient for both buy-to-live and buy-to-rent investors.

Luxe Zimbali benefits from high demand for short-term rentals in this prime location, making it an attractive investment opportunity.

According to Greg Morris, Developer of Luxe Zimbali, rental income is projected to reach R1.36 million annually, with net rental yields of up to R997,110 per year.

The area’s seasonality, particularly during peak periods from December to January and school holidays, ensures strong occupancy rates, offering the potential for increased returns during these high-demand times.