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Despite South Africa generally struggling with poor governance and heavy cost of living pressures, Cape Town’s luxury property market is hip and happening.

“Strong leadership in the City of Cape Town has managed to steadily separate itself [sic] from other regions within the country and develop itself into a growlingly desirable destination globally”, said Nick Gaertner, Director and COO of Knight Frank South Africa.

The global real estate specialists released their 2023 Wealth Report, which shows that prime residential prices in Cape Town skyrocketed in 2022, with our city climbing to 31st from 94th on the Prime International Residential Index (PIRI) the year prior.

The annual report tracks movements in luxury prices across the globe’s top residential markets and found that Cape Town’s prime residential prices increased by a cool 7,3%.

While Monaco has the most expensive residential market in the world, the region with the largest prime residential increase in 2022 was the United Arab Emirates’ Dubai, which saw a whopping 44,2% jump.

This hub for extreme-high-net-worth individuals was followed by Aspen, USA (27,6%), Riyadh, Saudi Arabia (25,0%), Tokyo, Japan (22,8%) and Miami, USA (21,6%) making up the top five.

Gaertner said that despite slipping from the effects of the pandemic, Cape Town has again “proved incredibly resilient and is once again attracting both South Africans from other territories as well as foreign buyers looking for second homes and to enjoy the beauty, lifestyle and value that the city has to offer”.

The main international buyers of prime SA property are from the UK, Germany, Austria, France, the USA, Belgium, and Canada.

Knight Frank also did well to recognise that the value for money here is pretty amazing.

For example, in Monaco, $1 million will only get a buyer 17 square metres, whereas Cape Town would get a buyer 218 square metres of prime property for the same amount of money.

[source:businesstech]