{"id":848461,"date":"2026-01-21T12:31:42","date_gmt":"2026-01-21T10:31:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=848461"},"modified":"2026-01-21T12:31:47","modified_gmt":"2026-01-21T10:31:47","slug":"rich-property-buyers-flocking-to-new-hotspot-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/848461\/rich-property-buyers-flocking-to-new-hotspot-in-south-africa\/","title":{"rendered":"Rich property buyers flocking to new hotspot in South Africa"},"content":{"rendered":"\n

Ultra-high-net-worth (UHNW) individuals are increasingly flocking to Cape Town’s southern suburbs, which are starting to compete with the city’s stand-out Atlantic seaboard.<\/p>\n\n\n\n

According to Alexa Horne, Managing Director of DG Properties, Cape Town’s property market was fundamentally reshaped in 2025, with average prices rising across prime suburbs.<\/p>\n\n\n\n

\u201c2025 wasn\u2019t just a strong year \u2014 it reset expectations. We saw a level of activity, confidence and sophistication that has permanently raised the bar for Cape Town\u2019s luxury market,” said Horne. <\/p>\n\n\n\n

At the very top of the market, properties priced above R50 million, and increasingly above R100 million, shifted from being occasional trophy acquisitions to a more competitive and active segment.<\/p>\n\n\n\n

Some of the most significant residential transactions were concluded in Upper Constantia, Bishopscourt and the Atlantic Seaboard, reaffirming Cape Town’s status as the nation’s undisputed luxury capital.<\/p>\n\n\n\n

Although the Atlantic Seaboard remains the most valuable residential strip, 2025 saw the Southern Suburbs increasingly firmly cement their position alongside it. <\/strong><\/p>\n\n\n\n

\u201cUpper Constantia and Bishopscourt delivered exceptional results last year,\u201d said Horne. \u201cThe calibre of buyers and transactions in these areas reflects their global appeal, not just local demand.\u201d<\/p>\n\n\n\n

She noted that the Southern Suburbs now rank among the most sought-after luxury residential addresses on the African continent, and combine space, security and lifestyle appeal with proximity to the city.<\/p>\n\n\n\n

The rental market echoed these trends, with long-term rentals in <\/strong>Upper Constantia, Bishopscourt, the V&A Waterfront and the Atlantic Seaboard often exceeding R100,000 per month. <\/p>\n\n\n\n

Short-term luxury rentals could even surpass R200,000 for standout properties.<\/p>\n\n\n\n

\u201cDemand continues to exceed supply in the premium rental space. We\u2019re seeing strong interest from semigrants and international clients securing homes ahead of relocation or extended stay,” said Horne.<\/p>\n\n\n\n

Outside of Cape Town, there is still strong demand for lifestyle-driven investments, such as wine farms in Tulbagh and the Swartland. <\/p>\n\n\n\n

There is also a host of unique agricultural and leisure properties aligned with long-term lifestyle planning.<\/p>\n\n\n\n

Emigrants and semigrants buying properties<\/h2>\n\n\n
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\"\"<\/a><\/figure><\/div>\n\n\n

DG added that the luxury buyer profile over the year was shaped by several overlapping forces, including:<\/p>\n\n\n\n

    \n
  • Continued semigration from Gauteng and KwaZulu-Natal<\/li>\n\n\n\n
  • Sustained interest from Germany, the United Kingdom and buyers across the African continent<\/li>\n\n\n\n
  • Renewed international confidence following South Africa\u2019s removal from the FATF grey list<\/li>\n<\/ul>\n\n\n\n

    As stock is limited in premium areas, competition also intensified, especially for well-located, high-quality homes. This reinforces the move towards off-market transactions. <\/p>\n\n\n\n

    One of the significant shifts of 2025 was the continued rise of private, off-market transactions, with UHNW buyers and sellers favouring discretion and confidential negotiations over public listings.<\/p>\n\n\n\n

    \u201cMany of our clients are not driven by visibility. They want privacy, certainty and expert guidance \u2014 and they want transactions handled quietly, said Horne. <\/p>\n\n\n\n

    This is similar to other global luxury markets, such as London, New York, and Sydney, where off-market deals are the norm.<\/p>\n\n\n\n

    Looking ahead to 2026, the conditions that drove the momentum in the luxury market in 2025 are likely to stay in place. <\/p>\n\n\n\n

    This includes interest rate easing, with the South African Reserve Bank widely expected to cut interest rates by around 50 basis points in 2026. <\/p>\n\n\n\n

    Other drivers in the local market include restored international confidence and a persistent shortage of luxury stock. This should sustain activity in 2026, especially in Cape Town\u2019s peak summer season.<\/p>\n\n\n\n

    \u201cThe market is entering 2026 from a position of strength. Buyers are decisive, sellers are realistic, and Cape Town\u2019s lifestyle appeal continues to differentiate it on a global stage,” said Horne. <\/p>\n\n\n\n

    With constrained supply and enduring demand, Cape Town is set to retain its position as Africa\u2019s leading luxury property destination in the year ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"

    While the Atlantic Seaboard is often seen as the most valuable residential strip in South Africa, it has now been joined by a fellow Cape Town area. <\/p>\n","protected":false},"author":95,"featured_media":848467,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[19653],"class_list":["post-848461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-dg-properties"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/848461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=848461"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/848461\/revisions"}],"predecessor-version":[{"id":848485,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/848461\/revisions\/848485"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/848467"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=848461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=848461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=848461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}