Billions in investment and major infrastructure upgrades drive renewed investor confidence across the province.
KwaZulu-Natal (KZN) is rapidly emerging as one of South Africa’s fastest-growing investment regions, with billions of rands in new property and infrastructure projects positioning the province as a rising powerhouse across multiple sectors.
According to the province’s Department of Economic Development, Tourism and Environmental Affairs, more than R75.8 billion in new developments and manufacturing investments was pledged during the 2024 KwaZulu-Natal Investment Conference, with 80% already under construction. The 2025 edition, taking place later this month, aims to attract a further R95 billion in commitments.
Wesley Cowan, managing director of Galetti Auction, says the surge in development marks a turning point for the province.
“KwaZulu-Natal has always been a popular holiday destination … but it has ultimately been overlooked alongside Gauteng and the Western Cape. This is now changing.”
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Investment momentum across sectors
KZN’s property boom is being driven by a combination of lifestyle migration, logistics expansion, and affordability. Cowan says demand is accelerating across residential, industrial, and commercial markets – with gated estates, retail centres, and top-performing schools attracting semigrants and families.
“Lifestyle factors remain a significant drawcard, along both the KZN coastline and inland,” he adds.
According to ooba Home Loans, 13.9% of all new home loan applications nationally are from buy-to-let investors, with Lightstone data showing year-on-year rental inflation in KZN at 4.5%, outpacing property price growth.
“As affordability challenges mount in the Western Cape, investors are increasingly turning their attention to KwaZulu-Natal,” says Cowan.
“With its coastal value proposition, climate and relative affordability, the province stands out as South Africa’s next major property hotspot.”
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Flagship developments and financier backing
Several large-scale projects are underpinning this growth momentum, including the R2 billion Club Med Resort and the R20 billion Sibaya Precinct expansion north of Durban, as well as extensive upgrades to the Durban and Richards Bay ports.
This momentum is now being actively supported by major financial institutions.
Speaking on the Property Pod, Vumiso Nyamazana, KZN regional head for commercial property finance at Absa CIB, refers to the bank’s “healthy appetite” for funding these “catalytic” KZN projects.
Nyamazana says Absa is a “lead arranger” for the Club Med resort, providing about 52% of the R1.5 billion in finance.
“This is the first Club Med in South Africa and we are so happy that it is happening in our province,” he says, adding that the impact on tourism and infrastructure will be “huge”.
He also highlights Absa’s backing of the Sibaya Precinct, noting that the bank deployed over R1.5 billion to finance the Salta Sibaya development “at the height of Covid” – a risk that paid off with over R2 billion in sales in just six weeks.
Crucially, says Nyamazana, the investment is no longer just on the North Coast. Absa has also deployed over R1.5 billion for the new Westown development, west of Durban.
“Westown sits along the N3 corridor, so for us as Absa, we have a bullish sort of outlook along that entry corridor,” Nyamazana adds, calling it a “catalytic” project that will create a “new city”.
He says the broader development is expected to create 8 500 permanent jobs and unlock over R15 billion in investment.
“It’s exciting that the forecast is now balanced. We now have the west also coming up.”
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Galetti’s November auction to spotlight KZN assets
Galetti Auction is set to showcase several KZN properties at its next live auction on 5 November 2025 at The Oyster Box Hotel in uMhlanga.
The portfolio includes a mix of residential, commercial, and industrial sites located in established economic hubs such as Mobeni, Musgrave and Mount Edgecombe.
“KwaZulu-Natal is in a phase of remarkable resurgence,” says Cowan.
“We’re seeing growing demand across every property segment, and these auctions offer investors the opportunity to secure assets ahead of the next major market upswing.”
This article was republished from Moneyweb. Read the original here.