By Liad Hadar – Director
This article first appeared in Asset Magazine’s September 2025 edition

This week I’ve been walking the rolling fairways of the Algarve in Portugal, playing golf with friends and noticing something familiar. The Algarve is not only a golfing paradise, it’s also a showcase of lifestyle estates.

Properties here are sold not just for their bricks and mortar, but for the lifestyle that surrounds them: manicured fairways, clubhouse culture, sea views and the promise of community living.

South Africa has followed a similar trajectory.

From Zimbali on the North Coast to Pearl Valley in the Cape Winelands and Steyn City in Johannesburg, lifestyle estates have become one of the fastest-growing segments of our property market.

They promise safety, amenities and a way of life that appeals as much to young families as to retirees and investors. But there is an often-overlooked truth, the success of these estates depends as much on location and aesthetics as it does on law.

Levies are the Green Fees of Community Living

A golf course only thrives if every member contributes whether by paying green fees and membership subscriptions. Miss a season of upkeep and even the best-designed course quickly deteriorates.

The same is true for lifestyle estates. Owners pay levies not for abstract administration but for very tangible realities, amongst other things, maintenance of roads, landscaping, lighting and security.

When levies are unpaid or mismanaged, the collective investment of the entire community is placed at risk.

South African law recognises this and the Sectional Titles Schemes Management Act and Community Schemes Ombud Service Act provide structures for levy collection, governance, and dispute resolution.

Homeowners’ associations, even when operating outside sectional title legislation, rely on enforceable constitutions and memoranda of incorporation to maintain financial stability.

By being bound to the legislation, body corporates are assisted with good governance and compliance, ensuring longevity and success if the players play by the rules.

Governance – The Club Committee of Property Ownership

Golf clubs have a committee, a set of rules and sometimes disputes about pace of play or dress code.

Estates are no different.

Boards of trustees or directors are entrusted with maintaining the estate’s infrastructure and enforcing its rules. Their decisions, whether on levy increases, architectural guidelines, or maintenance projects, directly affect property values.

Well-run governance keeps the fairways green. Poor governance, by contrast, drags down the entire experience.

For buyers, understanding the governance structure is as important as viewing the property itself.

The following questions should form part of a buyer’s due diligence:

Who makes the decisions?

How are levies calculated?

Is there a healthy reserve fund?

These questions are as critical as the number of bedrooms, the purchase price and location.

Legal Certainty as a Selling Point

In the Algarve, international buyers are often reassured by transparent governance structures and clear legal frameworks that protect foreign ownership. That certainty helps sustain the region’s popularity as a property destination.

South Africa’s estates can learn from this.

As our market attracts not just locals, but increasingly foreign investors, developers and estate managers should prioritise transparency.

Well-drafted constitutions, clear levy policies and effective dispute resolution mechanisms are not legal niceties, they are commercial necessities that directly influence demand and property values.

Lifestyle as an Asset Class

The rise of estates reflects a broader shift: property is no longer only about square metres but about lifestyle. A home inside Zimbali or Steyn City is part of a curated environment, much like a villa in the Algarve.

But lifestyle is fragile. It depends on constant maintenance, responsible financial planning and legal structures that align the interests of hundreds, sometimes thousands, of owners.

Lawyers play a quiet but essential role here- drafting constitutions, advising on governance, enforcing levies and ensuring disputes don’t erode community trust.

Closing Reflection

As I walked off the 18th green this week (beyond hundreds of thoughts about how difficult and rewarding golf can be!) I thought about the hidden work that makes a golf course beautiful – the unseen maintenance teams, irrigation systems, and careful planning. Estates are no different.

Behind every manicured lawn and secure entrance lies a legal framework that keeps the vision alive. From Algarve to Zimbali, the future of lifestyle property depends not just on location or luxury, but on law.

I have no doubt that a well-run body corporate or homeowners’ association is critical to long-term value creation in estates. Good governance in these instances is an asset protector and enhancer, whilst the opposite applies equally.

Our Team has been involved in numerous disputes, most of which could have been avoided with good legal framework as a reference point, together with sound legal advice, which I urge all serious property owners to seek in order to protect their asset values.