Wording – Chrissie Johnson
Global and domestic travel is steadily continuing its rebound and according to Statista (a business data platform) in Southern Africa vacation rental demand is increasing due to the region's diverse landscape and cultural experiences. As a result, the short-term rental (STR) industry is starting to stand out as a rewarding real estate investment for investors eyeing holiday rental properties based on growing tourism, high lifestyle value and a coveted destination for both leisure and remote work travellers.
Looking at the numbers tourism in KwaZulu-Natal (KZN) has shown healthy growth with around 8.92 million total arrivals in 2024, showing a 5.1% increase over 2023. According to www.africainvestor.com international arrivals have also increased by 48.9%, fuelling holiday rental demand. Adding further momentum, new projects like Club Med’s Beach-and-Bush Resort, featured in our April Local Real Estate newsletter, are expected to boost both international visitor numbers and investor interest in the area.
According to Shaun Rademeyer, CEO Multinet, “We’ve definitely noticed an increased interest in properties suited for short-term rentals, particularly along the KZN North Coast (e.g., Ballito, Salt Rock, Zimbali) where tourism and remote working have driven demand. Already, we’ve recorded an extra 128 transfers from January to March this year compared to the same period last year.”
In the KZN Midlands, demand remains steady — particularly for weekend getaways and countryside escapes within easy reach of Johannesburg and Durban. Cameron Leitch, a Local Real Estate property practitioner, notes: “There’s been a noticeable uptick in interest for properties that offer short-term letting potential over the past 12–18 months. Many buyers want a place they can enjoy for holidays and rent out when not in use. From conversations with my clients, average occupancy has climbed to around 70% in the past year, especially for homes within a 20–30 minute radius of Nottingham Road.”
He adds however that many existing properties for sale in this segment are older and often need modernising. “This requires a buyer who is willing to renovate and spend money on the property to modernise. We find these establishments take longer to sell as the value placed on the properties by the sellers is not in line with the demand.”
St Francis Bay has also emerged as a hotspot for property investment and semigration, with families, retirees and remote workers relocating from major cities to the coast. A key boost has been the fact that the Kouga Municipality, which St Francis Bay falls under, is now recognised as part of the Greater Garden Route. The area’s inclusion in the Greater Garden Route will also raise its profile among affluent foreigners looking for coastal retreats. Cape Town Airport logged a record 336,000 arrivals between January and March 2024 (which was a 16% increase year- on- year) and in this year’s figures April 2025 recorded a 17% y-o-y growth in international two-way passengers up until April 2025. The key source markets are the UK and Germany, followed by the US, Netherlands, and France. (Reference Wesgro - the Western Cape Tourism, Trade and Investment Promotion Agency.) According to WESGRO these latest air connectivity updates reflect a clear and growing demand for their region as a leading tourism and business destination.
On the short-term rental front, Airbnb alone lists over 510 active properties in St Francis Bay, backed by more than 7,400 guest reviews — clear evidence of healthy demand and a thriving hosting community. Many overseas travellers extend their Garden Route journey to include St Francis Bay, often mixing business and leisure — the growing “bleisure” trend — by adding days for remote work, local sightseeing, and coastal downtime. Well-equipped homes with good Wi-Fi, dedicated workspaces, and quality amenities tend to attract these travellers and command premium occupancy rates.
Multinet and OWN Property Finance also report a steady flow of enquiries from international clients and South Africans living abroad who want a lock-up-and-go holiday base or a future retirement retreat. While financing can be more complex for foreign buyers — local banks usually require a 50% deposit unless there’s proven local income or partnerships — both companies help with documentation, foreign exchange, and setting up local bank accounts.
Additionally with regards local high-income earners Multinet are seeing an increase in the leveraging of second bonds to acquire investment or holiday properties—based on the premise that high rental returns will justify the extra finance.
In short, the short-term rental market across KZN and the Eastern Cape’s coastal corridor remains buoyant. However, for those considering investing in the STR space, it’s worth noting that success goes well beyond buying the right property. Investors should treat short-term rentals as a fully-fledged business: use dynamic pricing tools, monitor seasonal demand, adjust rates and minimum stays accordingly, and market effectively to maintain high occupancy. Guest communication, online reviews, local compliance, and a seamless stay experience all play a crucial role in maximising returns and building long-term value.
Currently Local Real Estate operates on the KZN North Coast from Umhlanga to KwaDukuza; in the Midlands region from Hilton to Mooi River and in the Greater St Francis Bay area - which also has a Holiday Rentals Division as part of their offering.
Local Real Estate would like to acknowledge the much-valued assistance provided by Shaun Rademeyer CEO MultiNET Home Loans (Pty) Ltd; Cindy Kirchner Property Finance Specialist, Own Property Finance Specialists and Cameron Leitch Local Real Estate’s Local Sales Specialist Nottingham Road in compiling this article. This article is for general information only and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)