Experts believe direct Durban-London flight will attract foreign investment to the province
The introduction of a direct Durban to London British Airways link will assist local property investors looking to corner a portion of the foreign holiday-maker market, and even the frequent business travellers from the UK, say experts.
About 90 000 passengers fly between London and Durban annually, says Clifton Smithers, development representative of Lush, which offers sectional title opportunities with added value.
“The direct flight will terminate at London’s Heathrow airport, Europe’s busiest hub and will have a shorter flight time of about 12 hours and for a cheaper ticket price compared to other international carriers of the same class,” says Smithers.
“The frequency of this leg will also aid in creating a packaged commute to compel the foreign business or leisure traveller to explore Durban and KwaZulu-Natal as a potential place to invest or make home.”
With Brexit looming, UK investors will be looking further ashore for investment opportunities, experts predict.
Brexit will bring South Africa’s long-standing trade relationship with the UK into focus (R46billion in annual exports to the UK), painting the country as an attractive investment option. In addition, 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.
KwaZulu-Natal and Durban have seen an average of 334% growth between 2010-2017. Durban has also been ranked as one of the Top 50 cities for capital growth globally, in 26th position, outranking Birmingham and Manchester (UK), Cape Town and Miami (US).
Mercer’s Quality of Living study has positioned Durban as South Africa’s top city. One reason is that its general cost of living is lower in comparison to other major local cities, owed in part to things such as proximity, urban planning and geography.
The province’s North Coast ticks all the boxes, with several other factors adding to the success of this area as a high-growth node, says Smithers. In this area, Lush’s sectional title units are situated within a greater development, the North Coast’s Elaleni Coastal Forest Estate, so buyers have access to all the estate’s amenities.
Smithers says the success of Lush (at Elaleni, some homes have gained as much as 50% capital appreciation since launch and upon resale) is testimony to the attractiveness of investment in the region.