Cape Town is poised to have the healthiest and most prosperous Luxury Property Market in the world in 2021
there has most probably never been a better time to invest in a luxury seaside property in one of the most beautiful places on the planet.
African cities don’t necessarily come to mind when we’re talking luxury hotspots, but there has long been one notable exception: Cape Town, South Africa. Along with Shanghai, the city of Cape Town is poised to have the healthiest and most prosperous Luxury Property Market in the world in 2021, with prime prices expected to grow by 5%. Knight Frank LLP recently analysed the luxury market prospects for 22 major luxury hotspots for next year. While 20 of the 22 cities’ luxury markets are expected to remain flat or rise slightly, Shanghai and Cape Town are most definitely the two stand-outs expected to see the most significant growth.
Even at the height of the global lockdowns – the second quarter of this year, Cape Town proved its resilience as a luxury property hotspot by coming out on top in terms of growth in the global luxury property market. While major global cities like London and Paris saw prices for luxury homes decline, the market in Cape Town recorded quarterly gains of 3.7%. Even under full lockdown, Cape Town thereby simply continued to exhibit the astonishing growth that has characterized this market for well over a decade.
Speaking about the luxury property market in South Africa in general and Cape Town in particular, Dr Andrew Golding, chief executive of the Pam Golding Property Group which specializes in marketing luxury properties, recently noted that “the luxury market … is currently at its most competitive pricing in over a decade, so this is an excellent time to secure a well-priced property in international terms. I anticipate that the luxury property market is going to see a lot more buyers considering these types of homes as quality of life and affordability take precedent when they are considering their next residential purchase.”
Indeed, compared to other luxury hotspots, Cape Town mansions in prime locations – at the beachfront with a sea view – are very affordable, rarely pricing higher than $ 10 million (£ 7 million). In fact, a very spacious 1500 m₂ luxury property in the exclusive seaside suburb of Hout Bay can easily be purchased for as little as $ 4 million (£ 3 million).
Cape Town’s beautiful natural landscape and attractive climate are perpetual attractions to wealthy people from all over the world. The luxury property market in the “mother city”, as it is affectionately known, is also expected to see tremendous growth in the coming decade. All this means that there has most probably never been a better time to invest in a luxury seaside property in one of the most beautiful places on the planet, at Africa’s southernmost tip.
Paul Russell is co-founder of Luxury Academy London, a multi-national training company with offices in London, Mumbai and Visakhapatnam. Luxury Academy London specialise exclusively in the luxury industry and deliver training in leadership, communication and business etiquette training for companies and private clients across the globe.
Prior to founding Luxury Academy London, Paul worked in senior leadership roles within luxury hospitality. A dynamic trainer and seminar leader, Paul has designed and taught courses, workshops and seminars worldwide on a wide variety of soft skills.