While the majority of South Africans are simply not saving enough to afford luxury retirement, a small but influential portion of today’s retirees are investing in high-end retirement estate living – and investors are paying close attention.
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The National Treasury has reported that only six in every 100 South Africans are saving enough to retire comfortably, but Associate Director for Galetti Corporate Real Estate, Dean Wiid, comments that those who have prioritised retirement “are not afraid to spend on luxury retirement living to ease the transition.”
Wiid says that, “Demand for luxury retirement estates prioritising lifestyle and wellbeing continue to rise. Gone are the days of clinical, ‘jelly and custard’ retirement homes; today, retirees expect on-site wellness centres offering activities such as swimming, tennis, painting and yoga, top-rated restaurants and eco-friendly measures such as solar.”
An inland alternative
While the Western Cape continues to enjoy its reign as the strongest contender for ‘luxury retirement capital of South Africa’, heightened demand and hefty price tags have property developers and investors in search of alternative locations that deliver value for money, proximity and a unique proposition for South Africa’s wealthy retirees.
“And this is where the Midlands in KwaZulu Natal comes in,” states Wiid. “The Midlands has long been viewed as a popular holiday destination, but most recently, the property industry has noted an increase in demand from families and retirees looking to semigrate in a bid to escape the hustle and bustle of the big cities.”
Located in the heart of KwaZulu Natal, the Midlands Meander is set at the foothills of the breathtaking Drakensberg mountains. It runs for 80km from the north of Pietermaritzburg all the way to Rietvlei in the east and Nottingham Road in the west.
“The Midlands Meander offers everything that one could want and is a great inland alternative to coastal living. Individuals of all ages are drawn in by the relaxed pace, beautiful nature trails, rich cultural heritage, distinctive setting, enhanced safety, charming shops, and proximity to some of the country’s top schools such as Hilton College and St Annes,” he says.
But perhaps two of the greatest drivers is the Midland’s location and value for money. “Easy to access, the Midlands is a few hours’ drive (around 4.5 hours) from Johannesburg and one hour’s drive from Durban – two of the country’s major cities.”
When it comes to price, Wiid highlights that the average price per square meter for a home in the Western Cape is nearly double that of a home in KwaZulu Natal.
A unique investor opportunity
Dean Wiid of Galetti Corporate Real Estate
“Many investors have expressed interest in areas such as the Midlands but the opportunities to invest are few and far between.” However, a rare investment opportunity has come to market with Galetti tasked to sell the well-appointed Midlands Saddle & Trout via sealed bid.
Speaking to the method of sale, Wiid says: “Sealed bid is a transparent and fair method that protects the interest of both the buyer and seller.”
Wiid believes that the expansive property is bound to entice hungry investors. “The Midlands Saddle & Trout is located on a 135,1-hectare property and while it is fully developed, it offers plenty of room for future expansion.”
Situated on the picturesque Midlands Meander tourism route, the Midlands Saddle & Trout is located just 12km from the Mooi River. It’s complete with 58 modern and fully equipped units ranging from 1 to 4 bedrooms as well as 17 undeveloped sites. “It’s completely configurable and comes with an outdoor swimming pool, spa and wellness centre, horseback riding facilities, fishing, restaurant and mini golf.”
Midlands Saddle & Trout reimagined
While the property offers multi-dimensional investment potential as a family estate or a corporate and wellness retreat, Wiid still strongly believes that it would be best placed as a luxury retirement estate to capitalise on growing demand.
“As it stands, luxury retirement estates such as Midland Manor lead the way in the area, but there is certainly room for new investors to capitalise on growing demand. The sustained demand from this growing segment is undeniable and the property offers everything that a retiree could need,” he shares.
“Retirees who are willing to invest are looking for alternative options where they can get more value for their money and improved quality of life. We believe that this location, the amenities on site and the property’s set up lends itself to a luxury retirement estate.” He adds that the property is also ideally located within driving distance of clinics, hospitals, and doctors’ rooms.
“The key here is to differentiate the property and create a value proposition for buyers, and we believe that the property is ideally placed for this.”
Registrations opened on 19 July with final binding offers due by 5 August, 2024. “Regardless of the investor’s end vision, we expect this property to fly. The owner is looking for a buyer who sees the property’s full potential and we believe that it’s a once-in-a-lifetime investment opportunity” he concludes.
