Cape Town Tops Africa as Most Expensive Property Market, Says Report

CAPE TOWN — 20 May 2024

Cape Town has become Africa’s most expensive property market, with prime real estate averaging R102,750 per square metre according to a new wealth report.

Prices have rocketed 160% since the 2010 World Cup, more than double Johannesburg’s growth over the same period. The city now commands the continent’s highest prices for apartments between 100 and 200 square metres.

This position is attributed to its natural beauty, lifestyle appeal, and increasing foreign investment by wealthy international buyers. Last year, 40% of all African property sales above R10 million occurred in Cape Town, with the city posting 7.4% annual growth (Africa Wealth Report).

The findings come from the Africa Wealth Report compiled by Henley & Partners. South Africa remains the continent’s wealthiest nation, hosting 41,000 millionaires and eight billionaires—34% of Africa’s millionaire population.

Johannesburg leads in concentrated wealth, home to 11,700 millionaires mainly in Sandton and Waterfall-Midrand. Cape Town follows with 8,500 millionaires and 35 centi-millionaires.

The report projects Cape Town will overtake Johannesburg in total private wealth by 2030 if current growth continues. Other cities trail behind: Cairo ranks third (6,800 millionaires, five billionaires) and Nairobi fourth (4,200 millionaires).

A recent example of high-value investments includes a major international hotelier’s plan to acquire prime city-centre land for a new hotel development (The South African).