Direct Durban to London fight looks to attract foreign investors

British Airways has recently introduced the first only non-stop Durban to Europe link. This direct leg will pave the way to showcase not only South Africa, but KwaZulu-Natal, as a place for foreign investors.

On an international scale, and with Brexit looming, UK investors will be looking further ashore for investment opportunities. Brexit will bring more opportunity and bring South Africa’s long-standing trade relationship with UK into focus (exports to the value of R46Bn to the UK annually) painting the country as an attractive investment option. Furthermore, the £/ ZAR exchange rate will see some fluctuation, but the Pound will still remain unequivocally strong against the rand, giving foreign buyers greater purchasing power. The recent musings of British Prime Minister, Theresa May, have intimated that the UK will be the biggest direct foreign investor to South Africa, and the IMF predicts that 90% of growth globally will come from outside of the European Union.

On a smaller scale, KwaZulu-Natal currently outranks both Gauteng and Cape Town Firstly by way of capital growth. Durban and KZN have led the property price charge and have seen an average of 334% growth between 2010-2017. More interestingly, Durban has been ranked as one of the Top 50 cities for capital growth globally, sitting in 26th position, outranking Birmingham and Manchester (UK), Cape Town and Miami (USA).

Durban is an attractive option for foreigners looking to invest in property. With Mercer’s Quality of Living study positioning Durban as South Africa’s top city for a variety of reasons. South Africans living in Durban can attest to this, and if anything, the general cost of living in Durban is lower in comparison to other major cities like Cape Town and Johannesburg. The lower cost of living is owed in part to things like proximity, urban planning and geography. KZN’s North Coast ticks all the boxes with several other factors owing to the success of this area as a high-growth node.

A newcomer to the market, Lush, offers Sectional Title opportunities with added value- situated within a greater development and Lush benefits from estate-style security and attendant amenities. Looking beyond the four walls, the capital growth of existing properties at Elaleni has set the precedent for Lush into the future; some homes have gained as much as 50% capital appreciation since launch and upon resale. By its own right, Lush has shown its strength and the confidence of the market in this development (and furthermore, the node) with Phase 1 selling out in only 4 months, and the bulk of those sales taking place during the pre-public sales phase. Lush has an additional compelling offering to its investors by way of a Rental Management Platform established to manage both short and long-term corporate and leisure rentals. This platform will aid investors in generating a return on investment (ROI) in a shorter time frame and presents an attractive package to UK investors who might see diminishing returns inside of their borders in the near future. With  Air B&B as an internationally-recognised model, this too opens pathways for greater hospitality accommodation for travelers from beyond our borders. The introduction of a direct Durban to London leg presents an opportunity to local property investors who are looking to corner a portion of the foreign holiday-maker market and even the frequent business travelers from the UK. With proximity to King Shaka International Airport in its favour as well as its accessibility on to and off the N2 highway, the positioning of Lush only adds to its appeal for convenience and ease.

Clifton Smithers, Development Representative of Lush, “Statistically, 90 000 passengers fly between London and Durban annually. The direct flight will terminate at London’s Heathrow airport, Europe’s busiest hub, and will have a shorter flight time of approximately 12 hours (excluding check-ins and security) and for a cheaper ticket price when compared to other international carriers of the same class.  The frequency of this leg will also aid in creating a packaged commute to compel the foreign business or leisure traveler to explore Durban and KZN as a potential place to invest in or make home.”

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