Why families and investors are flocking to East London’s coastal heaven
East London, also known as Buffalo City, is emerging as a real estate hotspot, attracting families, investors, and lifestyle seekers alike. Boasting long white sandy beaches, a pleasant sub-tropical climate, and abundant recreational activities, the city lies between the Sunshine Coast and the Wild Coast.
Source: Supplied. Priced at R10.995m through Pam Golding Properties, and set on a 5964sqm erf in sought after Nahoon River Country Estate in East London, this palatial property includes a luxurious main house of 840m² with oversized rooms and double volume ceilings, entertainment area with indoor braai, pizza oven and bar area, and stack-away doors leading onto a spacious patio and swimming pool. With solid teak floors and underfloor heating in all the bathrooms, the home also includes an expansive 160m² basement which can be utilised as a playroom, dance studio, gym or storage area.
Its commercial river port is set for an $8m upgrade, revitalising Latimer’s Landing, boosting tourism, supporting local business, and creating jobs. With scenic coastline and growing economic prospects, East London offers both lifestyle appeal and investment potential.
A Makro store recently opened in the suburb of Gonubie, which also created employment, while Beacon Bay Retail Park has upgraded the shopping complex with a new facelift. There is also talk that the IDZ (Industrial Development Zone) has attracted new investors for renewable energy.
With a selection of family-friendly beaches lapped by the warm waters of the Indian Ocean, East London is ideally placed to capitalise on its strong appeal to young families, first-time buyers, and longer-term investors.
Beyond its highly desirable lifestyle, it offers larger homes with scenic coastal views at more accessible prices than those found in the major coastal metros, says Pam Golding Properties area principals Mandy De Beyer and Rachel Petersen.
East London value
Says De Beyer: “Overall, residential property prices in East London offer excellent value for money compared with the major metros. For example, a one- or two-bedroom flat or apartment in Beacon Bay sells for between R1m and R1.1m. A typical well-located starter property in this bracket would include two bedrooms, one bathroom and a single garage.
“First-time buyers generally look for freehold townhouses priced between R950,000 and R1.2m - a range still attainable in Beacon Bay, where two- to three-bedroom units with a single garage and no levies provide an affordable entry point. In Gonubie, a standard two-bedroom, one-bathroom townhouse with a carport is available for around R850,000, often with low or no levies. Importantly, banks are showing increased flexibility, which continues to support first-time buyers.
“Value for money is also evident at the next level up. A medium-sized home in sought-after Nahoon, comprising three bedrooms, two bathrooms, a double garage and a swimming pool, can be acquired for R2.2m to R2.3m. In Beacon Bay, a comparable home would sell for between R1.9m and R2.1m.”
Premium property demand
Homes in secure, gated estates remain highly sought after in East London and continue to show strong capital appreciation. In Bishops Country Estate in Beacon Bay, the average selling price has increased by 8.66% over the past year, reinforcing its status as a sound investment.
Other well-regarded estates include Princess Alice Ridge in the heart of Nahoon and The Quarry, located on the border of Baysville and Selborne. Prices in established estates such as these typically range from R3m to R6m in The Quarry, from R3m to R8m in Bishops Country Estate, and from R5m to R8.5m in Prince Alice Ridge.
Says Petersen: “Semigrants are relocating to East London for its lifestyle appeal and close-knit community, which offers a relaxed coastal atmosphere while still providing the benefits of a larger city. Residents enjoy proximity to leading schools such as Selborne College, Clarendon, Hudson Park, Merrifield, Stirling and OosKus, along with quality hospitals and a full range of amenities.
"Most of our purchasers are either local buyers moving within East London, or semigrants from Durban, Johannesburg, King William’s Town, Butterworth and Mthatha.
“Activity in the housing market has definitely improved in 2025 compared to the previous year. The most active price band is between R1.5m and R3m, while the top end of the market ranges from R4m to R12m.
"The most sought-after high-end suburbs are Nahoon Beach and Blue Bend. A modern, well-positioned home in Nahoon Beach with river and river-mouth views - offering five en-suite bedrooms, expansive open-plan living and entertainment areas, a swimming pool and landscaped garden - typically sells between R9m and R10m.
“Those relocating to East London are primarily seeking freehold properties. Younger buyers entering the market and retirees alike prioritise modern, single-storey townhouses with double garages, small gardens and pet-friendly features, generally priced below R2m.
"Middle-aged buyers (36–49 years) typically look for freehold family homes close to schools, shopping centres and offices. Their ideal home has four bedrooms, a double garage, a swimming pool and sufficient bathrooms to accommodate the family, in the price range from R2.5m to R3.5m.”
Source: Supplied. Set in Gonubie on the banks of the Gonubie River in East London, this prestigious property offers dual living or potential income generation as it includes a four-bedroom main home plus a spacious three-bedroom second dwelling included on the property. The main house offers functional living areas that open to the patio, lush manicured garden and swimming pool, entertainment area with built-in braai, and a private study. The property offers excellent security, water tanks, irrigation and sprinkler system, a three-phase inverter with batteries and solar panels, and is priced at R4.75m through Pam Golding Properties.
For ease of comparison, De Beyer and Petersen provide an overview of popular suburbs in East London:
Nahoon: Close to leading schools, quality healthcare, Nahoon Beach and the Golf Club, the average home price in 2025 to date is R2.45m. Freehold sales activity has nearly doubled since 2024, while sectional-title sales have remained stable and vacant-land activity has also risen. Notably, 57% of recent buyers are under the age of 50.
Beacon Bay and Beacon Bay North: These suburbs offer a wide range of property options, combining suburban tranquillity with convenient access to amenities. The average selling price to date in 2025 is R2.6 m (R1.6 m in Beacon Bay North), with 41% of purchasers in Beacon Bay and 44% in Beacon Bay North aged between 36 and 49. Sales activity in freehold properties has held steady, sectional-title sales have weakened slightly, and there has been a marked slowdown in vacant plot sales this year.
Gonubie: Popular with young professionals, families with school-going children and investors, Gonubie is in high demand for its coastal lifestyle, natural beauty, community spirit, safety and value for money. The average selling price in 2025 was R1.475m.
A standard two-bedroom, one-bathroom townhouse with a carport sells for around R850,000, while a typical three-bedroom, two-bathroom home with a double garage sells for about R1.5m - increasing to around R2m if the property includes a flat and is in good condition. A three-bedroom home with two bathrooms, a double garage, swimming pool, views and a desirable location will achieve an average of R2.5m.
East Coast: Post-Covid remote-working trends drove many residents to sell homes in East London’s suburbs and relocate to the East Coast - an extended stretch covering areas 20km to 150km from the city. Homes here benefit from proximity to the sea, rivers and natural surroundings, and many families have purchased either ready-built properties or plots to build bespoke homes.
The East Coast comprises a number of small coastal villages, including Glen Stewart, Glen Navar, Sunrise-on-Sea, Balugha River Estate, Khamanga Bay, Cintsa and Cintsa West. Balugha River Estate, which consists of 94 erven, provides a useful example: over the past year, the average selling price for a residence has been R3.25m, while vacant land averages R455,000, reflecting a notable 30% increase in value compared to last year.