With impressive annual growth of 12.3%, Cape Town’s luxury residential market has distinguished itself in the global real estate industry.
Also read: Surge in returning South African expats boosts Cape Town property market
The latest findings from the Prime International Residential Index (PIRI 100) in Knight Frank’s Wealth Report showcased positive trends for 2023, featuring 80 markets experiencing either steady or upward annual price growth.
Despite initial concerns about economic challenges, the global luxury property market seemed to have defied expectations, posting an overall solid gain of 3.1%.
Cape {town} Etc discount: Looking for things to do in the city at half the price? Let these great offers inspire you and fuel your imagination! Get them here.
While Manila took the lead with 26% growth, closely followed by Dubai at 16%, Cape Town secured a commendable spot alongside Algarve in Portugal, boasting a 12.3% annual change.
‘Alongside the rising prices, there has been a notable increase in prime property transactions,’ says Nick Gaertner, director and COO of Knight Frank South Africa.
‘The favourable exchange rates for foreigners, coupled with an unparalleled lifestyle offering, continue to draw both local and international buyers to Cape Town.’
Gaertner says the influx of buyers and resulting upward price shift is expected to continue for the foreseeable future due to the City’s efficient management relative to the rest of South Africa and its prime location near renowned winelands, mountain trails and Blue Flag beaches.
According to BusinessTech, buyers are often surprised by the price variations across luxury residential markets globally. For instance, Monaco offers a mere 16 square metres for US$1 million (approximately R19 million amid rand fluctuations).
In comparison, Cape Town offers substantial value for second-home investments, providing almost ten times the space of Aspen in the USA for a US$1 million investment.
Explore Cape Town and its surroundings with these incredible deals on cars for under 100k. Find car listings here.
Also read:
Cape Town luxury property market surpasses R3 billion in 2023
Picture: Trev Morris / Unsplash