"I have seen the property market in the area move from strength to strength in recent years and I believe it is set to continue, even if the pace slows down," says Brian Codling from Fine & Country Pietermaritzburg.
The Pietermaritzburg property market has performed in line with the national market and will continue to do so. Since the introduction of the National Credit Act (NCA) and the increased interest rates, the national market has flattened off and appreciation in the area has also slowed down.
Be that as it may, the area is a dynamic commercial, educational and industrial centre. Companies are relocating into its orbit, drawn by a quality of life which is not easily obtained in South Africa's larger cities.
Hotels, nightclubs, restaurants and bed & breakfast establishments cater for every tourist need. Yet the countryside is never far away. Timbered hills cradle the city while the Msunduzi River streams through its centre.
Pietermaritzburg has awoken from a politically induced slumber, with provincial government moving back to the city from Ulundi. The return of civil servants and is an important factor behind an enormous 30% increase in economic activity in the past year.
Local government has been buffing up services, signifying further interest and confidence in the vast potential of the area. One such government expenditure includes the development of a highway corridor between Durban and Pietermaritzburg.
A massive development at Cato Ridge, between Durban and Pietermaritzburg, is expected to take place within the next decade. It is believed that it could be the "Midrand" of KwaZulu-Natal. "There are various developments on the go in the Ashburton area and it is anticipated that the corridor between Hillcrest and Pietermaritzburg will become a Midrand equivalent within the next decade," says Codling.
"Although prices have increased over the past five years, property here still represents good value in comparison to the Durban market," says Codling.
Currently, there is high interest in entry level properties that are well presented. Entry level flats start from R350k, while entry level homes are priced in the region of R600k. Mid-level homes are now selling between R1m and R1,2m while the most expensive up-market properties in the Natal Midlands Country start from R3,5m and can go up to R25m.
There is great demand for vacant land around the city and requests remain strong for both individual plots as well as areas for development. Individual plots range in price from R250k to R1m, dependent on the location.
The Pietermaritzburg area is known as an educational centre and has some of the country's finest private schools such as Hilton College, St Anne's, St Charles and the University of KwaZulu-Natal.
One of the premier developments in the area is the Victoria Country Club Golf Estate which is setting new pricing standards for both residential and office properties. The area is an hour away from the coast and a 30 minute drive away from an activity-filled location for hiking, fishing and other outdoor activities.
"Residential housing supply is beginning to rise to the challenge of meeting the strong demand in the area. Pietermaritzburg is both a desirable and convenient place in which to live, while still offering good value for money. I expect that investors who jump in early, and those who already have, will receive great rewards within the next decade," Codling concludes.
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