Over the last decade, we have seen KZN grow from strength to strength. This province is transforming each year and offering residential and commercial properties that address socio-economic issues, while also creating easy connections to places that need to are attracting investors and families alike. One of KZN’s success stories is the Sibaya Coastal Precinct.
Named a catalytic development, the Sibaya Coastal Precinct sits along the North Coast of KZN, between Umhlanga and Umdloti. It has unlocked value for both property developers and homeowners. Due to the massive property value growth experienced within Sibaya, it has now become South Africa’s best performing residential precinct and will now host the first-of-its-kind mixed-use development and smart village, Salta Sibaya. The success of Sibaya’s is not only a result of its thoughtful, holistic design but also its placement within the province of KZN; which is fast becoming SA’s most investable province for a host of reasons.
Coastal proximity
Coastal property, like that in Sibaya will continue to grow in value. Using the nearby suburb of Umhlanga as an example, sea-facing homes have seen a sharp rise in the price-per-square-metre over the last decade. Much of this value is owed to placement and positioning, but there is also one key factor that adds massive value – infrastructure. Umhlanga’s value has steadily climbed over a fairly extended period, and its desirability has remained stable. Sibaya, however has set a new benchmark with 40% capital appreciation achieved in less than 5 years. Sibaya is vastly different in that it has been plotted, planned, and well designed to create value for its investors. Additionally, Sibaya’s infrastructure, for the most part, has been laid and upgraded by private developers like Devmco Group, in order to ensure uninterrupted services within the precinct. Sibaya’s strategic placement along the coastal side of the M4 draws on the best of KZN’s North Coast and is the golden key that unlocks true value.
Sustainable ethos
Along with good infrastructure, Sibaya upholds a genuine sustainability ethos, seen through the 60% of undeveloped natural environment. With the value of natural assets, like those within Sibaya, being at the forefront of property development and urban planning, Sibaya’s 350-hectare coastal forest will lend even greater value to the homes within the precinct. Having a strict ‘no-development’ zone, the design of Sibaya recognises the importance of these natural areas, not only to property values but also to the long-term vision of a precinct that upholds sustainability and is future-proofed.
Easy access
Running along a portion of one of Durban’s major highways, the M4, makes getting to and from Sibaya quick and easy. This is one of the factors which resonate deeply with buyers from Gauteng. For many, the commute between work and home takes up a fair portion of their day, and with that valuable time for business or leisure. The ease of commute is one of the lifestyle factors which adds value to an area like Sibaya. Another facet of accessibility is where schools are placed in relation to one’s home – just between Ballito and Umhlanga area host of the country’s top private schools operated by top education providers, which continue to attract people from all over Durban. Sibaya itself will also include a Curro school from Grade R to Matric, and a private university and modern student residences. This creates a development model is unseen in SA; the ability to live within a new, well-planned, holistic precinct which offers sea-facing homes, is secure and well-managed with a new, modern university within. In light of this, KZN is poised to set a new benchmark by offering students the chance to attend a top-class private university which is literally in walking distance from home. Furthermore, the proximity of the university to the various residential estates within Sibaya means that it will undoubtedly attract many more families from outside of KZN’s borders. Over the last 10 years, the corridor between Durban-Umhlanga-Ballito has experienced approximately R54 billion in wealth growth, which is largely owing to the influx of families into the region.
Business confidence and busy airports
King Shaka International Airport has become one of SA’s busiest airports. An easy 10-minute drive from Sibaya, the airport’s accessibility makes it ideal for those who commute in and out of the province for business purposes – you could touch down after a 55 minute flight from Joburg, walk off the plane, get in your car and be home within 20 minutes. Many families are choosing to semigrate to KZN for a host of reasons – from top schools and pleasant weather to less congestion and traffic, and also the chance to live a slower pace of life. Families from other provinces like Gauteng, have bought up property in Sibaya for primary residential use knowing that the proximity of the airport enables business travel to continue seamlessly.
Business confidence is not only an indicator of a growing regional economy, but also an indicator of where to invest. KZN is undergoing a huge transformation and is becoming the destination for business. Durban’s new CBD has established itself in Umhlanga Ridge, with the likes of Investec and Nedbank having set up there. Further north, the Dube Tradeport forms part of the growing Aerotropolis, which will link business, manufacturing, freight, and cargo together in one strategically planned region.
The volume of greenfield development taking place in KZN indicates the growth and desirability of the region. By way of its design, Sibaya has set a new regional and national benchmark for what a city of the future looks like. The Sibaya Coastal Precinct is one of the factors which makes KZN South Africa’s most investable province.
Tourism is one of the key drivers of our economy and Durban has consistently managed to maintain its place as SA’s playground with record number of tourists visiting our shores over the festive period.
South Africa has a positive tourism balance with the rest of the world; foreign tourists spend more money in South Africa than South African tourists spend abroad. Tourism in South Africa directly accounted for 2.7% or R2.35 billion of our nominal GDP (Gross Domestic Product)of R1. 288 trillion for 2019.
Tourism is one of the keys to unlocking economic growth for South Africa, with job creation being one of the cascading benefits of this- one in every 22 working South Africans are employed in the tourism sector.
Charles Thompson from Devmco Group, “Tourism is undoubtedly a catalyst for job creation; and South Africa is Africa’s largest tourism economy therefore by creating opportunities for tourists to want to come to South Africa, we are also creating opportunities for job creation. While tourism is an economic driver, we also need to foster foreign investment via individual investors; and destinations like the Sibaya Coastal Precinct set the precedent for the future of development on our North Coast in line with future city models seen abroad.”
As a holiday destination, KZN, and the North Coast of Durban seems to exert a pull over the rest of the country and our year-round warm climate and easy beach access makes it perennially attractive. Statistics from this time last year reveal that almost 30% of our tourists into SA hailed from the UK with Germany close behind accounting for 23%. International tourism to KZN has undoubtedly been boosted by several international flight routes between King Shaka International Airport and other major global destinations, which include a direct London to Durban leg operated by British Airways; Emirates’ twice daily direct Durban to Dubai flights and Qatar Airways’ direct Durban to Qatar leg. These direct flights are invaluable in positioning the province as the gateway to South Africa. During our peak festive season, most of the airlines at King Shaka International Airport operated at almost total capacity with a reported 11% increase in the number of international passengers in comparison to the same period in 2018.