Ultra-high-net-worth (UHNW) individuals are increasingly flocking to Cape Town’s southern suburbs, which are starting to compete with the city’s stand-out Atlantic seaboard.
According to Alexa Horne, Managing Director of DG Properties, Cape Town’s property market was fundamentally reshaped in 2025, with average prices rising across prime suburbs.
“2025 wasn’t just a strong year — it reset expectations. We saw a level of activity, confidence and sophistication that has permanently raised the bar for Cape Town’s luxury market,” said Horne.
At the very top of the market, properties priced above R50 million, and increasingly above R100 million, shifted from being occasional trophy acquisitions to a more competitive and active segment.
Some of the most significant residential transactions were concluded in Upper Constantia, Bishopscourt and the Atlantic Seaboard, reaffirming Cape Town’s status as the nation’s undisputed luxury capital.
Although the Atlantic Seaboard remains the most valuable residential strip, 2025 saw the Southern Suburbs increasingly firmly cement their position alongside it.
“Upper Constantia and Bishopscourt delivered exceptional results last year,” said Horne. “The calibre of buyers and transactions in these areas reflects their global appeal, not just local demand.”
She noted that the Southern Suburbs now rank among the most sought-after luxury residential addresses on the African continent, and combine space, security and lifestyle appeal with proximity to the city.
The rental market echoed these trends, with long-term rentals in Upper Constantia, Bishopscourt, the V&A Waterfront and the Atlantic Seaboard often exceeding R100,000 per month.
Short-term luxury rentals could even surpass R200,000 for standout properties.
“Demand continues to exceed supply in the premium rental space. We’re seeing strong interest from semigrants and international clients securing homes ahead of relocation or extended stay,” said Horne.
Outside of Cape Town, there is still strong demand for lifestyle-driven investments, such as wine farms in Tulbagh and the Swartland.
There is also a host of unique agricultural and leisure properties aligned with long-term lifestyle planning.
Emigrants and semigrants buying properties
DG added that the luxury buyer profile over the year was shaped by several overlapping forces, including:
- Continued semigration from Gauteng and KwaZulu-Natal
- Sustained interest from Germany, the United Kingdom and buyers across the African continent
- Renewed international confidence following South Africa’s removal from the FATF grey list
As stock is limited in premium areas, competition also intensified, especially for well-located, high-quality homes. This reinforces the move towards off-market transactions.
One of the significant shifts of 2025 was the continued rise of private, off-market transactions, with UHNW buyers and sellers favouring discretion and confidential negotiations over public listings.
“Many of our clients are not driven by visibility. They want privacy, certainty and expert guidance — and they want transactions handled quietly, said Horne.
This is similar to other global luxury markets, such as London, New York, and Sydney, where off-market deals are the norm.
Looking ahead to 2026, the conditions that drove the momentum in the luxury market in 2025 are likely to stay in place.
This includes interest rate easing, with the South African Reserve Bank widely expected to cut interest rates by around 50 basis points in 2026.
Other drivers in the local market include restored international confidence and a persistent shortage of luxury stock. This should sustain activity in 2026, especially in Cape Town’s peak summer season.
“The market is entering 2026 from a position of strength. Buyers are decisive, sellers are realistic, and Cape Town’s lifestyle appeal continues to differentiate it on a global stage,” said Horne.
With constrained supply and enduring demand, Cape Town is set to retain its position as Africa’s leading luxury property destination in the year ahead.
