Euro Buyers Make Their Move: Cape Town's Real Estate Attracts International Attention
As we approached the end of 2023, Cape Town's real estate market witnessed an intriguing shift, becoming a focal point for European buyers seeking a quality lifestyle amidst economic and geopolitical challenges. The allure of Cape Town, coupled with favourable currency exchange rates, is turning the city into a viable Plan-B for top-end international buyers.
A Surge in High-Value Property Sales
According to Seeff Property Group, sales to international buyers have significantly increased. By the end of July last year, sales amounted to over R2.1 billion, a remarkable 50% increase from 2021 and 12% higher than 2022. Seeff Atlantic Seaboard and City Bowl's Licensee, Ross Levin, highlights that a majority of these sales were concentrated in these prime locations.
The Weak Rand: An Opportunity for European Buyers
The current economic landscape, particularly the weak rand, which hovers around R19 to the dollar, is playing a pivotal role. Buyers are paying substantially less - about 35% less compared to two years ago. For instance, a luxury Camps Bay villa, previously valued at around USD 2.2 million, now costs just about USD 1.6 million. This financial advantage is drawing a significant number of European nationals, including buyers from Germany and the UK, and increasingly, Russian and American buyers too.
Camps Bay: The Epicenter of High-Value Transactions
Camps Bay, known for its picturesque coastline and vibrant lifestyle, is witnessing a remarkable influx of international buyers. Nadine Jocum, a Seeff agent in Camps Bay, notes that the suburb has been a magnet for international and South African expat buyers since the onset of the pandemic. The suburb's appeal lies in its stunning coastal lifestyle, which not only enhances the city's cosmopolitan vibe but also bolsters the local economy, including various service sectors.
22 Jan 2024
Author Seeff Atlantic Seaboard & City Bowl
