Cape Town has been earmarked as one of the most expensive cities in the world to own property in, according to property group Frank Knight’s latest Wealth Report.
Although Cape Town is one of the countries lower down on the list, it costs around $1-million to purchase 177 square metres of prime property here.
One of the key focuses of the report is the global luxury residential property market, and how much property costs in the wealthiest cities.
According to Knight Frank, Monaco is still one of the most expensive places to live on earth – with one in every three people in the principality classified as a millionaire. Here, $1-million will buy you a mere 16 square metres of property.
“Burgeoning rental demand, limited supply and, in most cases, buoyant local economies mean four European cities, led by Edinburgh (+10.6%) and Berlin (+10.5%) make the top ten, despite slower growth across the eurozone,” the report reads.
The property group estimates that the cost of property in Cape town will continue to rise, alongside a number of European cities.
“The next 12 months will see a shift in the performance of global property markets, as purchasers and investors respond to greater uncertainty in the global economy, a proliferation of market regulation and the rising cost of debt,” it says. “Of the cities that we forecast, we expect that five (Buenos Aires, Dubai, Hong Kong, Mumbai and Shanghai) will see prices fall this year, two (New York and Singapore) will see prices remain static and that the remainder will see prices rise – albeit modestly. Key European cities, along with Cape Town lead with the highest growth. These are increasingly popular investment hubs for European and global investors, with a growing presence from Chinese buyers.”