Rich South Africans and foreigners are snatching up property in these areas – with new hotspots emerging
Cape Town is home to South Africa’s main millionaire hotspots, but buyers are starting to explore other areas across the Western Cape.
The latest Africa Wealth Report 2024 from Henley & Partners also showed that Cape Town is still the hottest property investment region for UHNW investment buyers.
The country’s most affluent residential areas are in the ‘Prime 7’ – Clifton, Bantry Bay, Camps Bay, Bishopscourt, Constantia, Llandudno, and St James.
Speaking to BusinessTech, Lance Cohen from Lance Real Estate, the market leader in the Atlantic Seaboard, said that prices in Cape Town are going up as demand outpaces supply, with rentals nearly doubling over the last two years.
Cohen said that many are drawn to the Atlantic Seaboard, which includes Clifton, Bantry Bay, Sea Point and more, due to its views of the sea, less traffic and better climate than other parts of Cape Town.
He added that many South African expats are returning to the country, especially from the UK, for tax reasons.
The UK government is ending its non-dom tax policy, which previously required UK residents whose permanent home is outside the UK to pay UK tax only on the money they earn in the UK and not from other places worldwide.
Cohen added that many Germans are snatching up property in the wealthy areas that the company services.
He added that many wealthy citizens from Gauteng and KwaZulu-Natal are also making their way down to the Atlantic Seaboard, which he attributes to the better service delivery in Cape Town, lifestyle benefits and good schools in the area.
When it comes to buyers, their situations tend to differ notably.
Cohen said that buyers from Gauteng often use their Atlantic Seaboard properties as summer holiday homes and rent them out for the rest of the year.
Foreigners from the northern hemisphere also avoid their cold winters by coming to Cape Town during the summer holiday.
Notably, despite Cape Town’s renowned wet, cold and windy winters, wealthy foreigners can still be found in Cape Town during the colder months.
Cohen noted that many wealthy individuals from the Middle East, including the UAE and Saudi Arabia, go to Cape Town in the Southern Hemisphere winter to avoid the unbearably hot summers in their home countries.
He added that Cape Town is an attractive destination because it is far cheaper than other international cities and offers far more lifestyle benefits.
Other areas gaining traction
That said, Cape Town is not the only area seeing an influx of wealthy individuals; other areas in the Western Cape are also seeing growth.
Cohen said that Franshoek is seeing large development, which is limited in Cape Town, as most of its land is already in use. The Val de Vie estate near Paarl is also incredibly popular.
Smaller towns in the Western Cape, notably George, also saw an influx of the wealthy.
The rise of remote work means many wealthy individuals no longer have to be in a major city to do their jobs.
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