Barak Geffen, Executive Director of Sotheby's International Realty (operated by Lew Geffen) says, "House prices in Durban have for the last few years lagged both Cape Town's and Johannesburg's but they are really flying now, with an increase of almost 40% in the past two years.

"They are rising so rapidly because for ages the area was overlooked in favour of Cape Town and Eastern Cape hotspots like Plettenberg Bay. But this has led to good value emerging in Durban and investors, especially those from overseas, see Durban as a bargain and one of the best kept secrets on the international property radar."

Patrick Maingard, MD of Pam Golding Franchise Services says: "Coming off a much lower base than Cape Town, and with a very strong pent-up demand for homes, Durban has seen prices increase markedly over the past two years.

"But while Durban may see a better capital growth than Cape Town over the next five years, I think that Cape Town has a stronger allure in terms of international visitors and tourism, and is a more cosmopolitan city. Their appeal is different and Cape Town prices will, I believe, always tend to be higher".

Geffen says Durban suffered for years from a "poor cousin" image due to the political instability in KwaZulu-Natal, lack of new development and limited international flights.

"But now with calm in the area, a number of impressive developments on the waterfront and plans for a new airport north of Durban, which will offer direct flights to London, and is scheduled for completion before the 2010 Soccer World Cup, Durban is becoming much more attractive," says Maingard.

Maingard goes on to say that in Durban the new Point Waterfront development is already starting to have a positive impact on property values in the Point, beachfront, Victoria Embankment and Esplanade areas, resulting in a higher demand for homes in those areas. The rejuvenation of Cape Town's inner city area has taken a leap forward with such redevelopments, which have added significant value to older buildings previously used as offices.

This has further enhanced the city's vibrant, hip image as a great place to live, work, shop and be entertained. Durban has significant and yet untapped potential in this regard. The city also has one of the highest concentrations of art deco buildings in SA, many of which are situated in the central city area, and which also offer exciting redevelopment opportunities.

In Cape Town, such conversions have already added tremendous value to old office buildings while serving to breathe new life into the city, improving security and adding to the overall appeal.

There is no reason why Durban cannot do the same, but while maintaining its own unique local flavour and culture. Many of the buildings in the Durban CBD have great views across Durban and the harbour, yacht mole and beachfront, which add significantly to their appeal. There are also a number of old buildings located in the Point Road area which would be ideal for conversion to trendy loft apartments. In the Albert Park area there are numerous existing apartment blocks that could easily be redeveloped into prime accommodation.

"Durban offers a very appealing tropical climate, with warm sea all year round and a very mild winter," Geffen says.

Sotheby's International Realty has seen an upsurge in international buyers in Durban, with English buyers in particular showing a lot of interest.

"The English have always had a strong cultural affinity with Durban and find it an easy place to live and work. They are attracted by the good value for money, sunny warm climate, proximity to game farms, the Drakensberg and the huge choice of world class golf courses.

"Many expatriates have been seduced by the charm and international hype around Cape Town. But now that they are getting to know SA better, they are looking for value in other areas," Geffen says.

The incredible performance of the economy and exceptional macroeconomic stability of SA, has also been a boon to international investor confidence and encouraged them to look at property investment all around SA.

Business Day