Global Property Handbook has ranked Cape Town and Johannesburg the top cities in Africa, preferred by ultra-high net worth (UHNW) purchaser of luxury real estate. Globally, the handbook ranked the Mother City 37th and City of Gold 46th. The handbook was published by Wealth-X and its partners – Barnes International Realty and Warburg Realty.
The Global Property Handbook explores the real estate investment habits of the world’s super-wealthy. Cape Town and Joburg were ranked in the Alpha Cities Index of the handbook.
Lew Geffen Sotheby’s International Realty in South Africa specialises in the luxury residential market. Its Chairman Lew Geffen says: “According to the report, global UHNW investors base decisions about where to buy property on a combination of practical, emotional and financial reasons and the most desirable locations are those that tick the highest number of boxes in all three criteria.
“In Cape Town, foreign interest is driven by numerous factors, including the weak Rand that affords offshore buyers excellent value compared to most European destinations and similarly cosmopolitan Southern Hemisphere cities like Sydney in Australia where comparable properties are ten times the price.”
In recent years, a number of the most prominent, established wine farms have been sold to foreign investors and the Lew Geffen Sotheby’s International Realty office in Stellenbosch is currently concluding the sale of a wine farm to UK buyers.
Steven Neufeld, Manager Principal of Lew Geffen Sotheby’s International Realty in Plettenberg Bay, says: “The number of foreign sales we’ve concluded has increased annually since 2012 when only 3% of our buyers were foreigners.
“Currently 13% of all our sales are to international investors, most being swallows hailing from Europe, but we’ve also sold a number of properties to buyers from Middle Eastern and African countries.”
Neufeld adds that his office is fielding an increasing number of queries from expats who want to purchase property in the town as investment and holiday homes with potential for retirement or moving back to South Africa at a later stage.
Geffen concludes: “The fact that Cape Town has been listed as one of the top cities worldwide on the Global Cities of the Future winners 2016/17 for foreign direct investment (FDI) strategy will further boost foreign investor confidence, especially in the face of the current political turmoil in much of the northern hemisphere, and global economic uncertainty.
According to fDi Intelligence, a division of the Financial Times, Cape Town has also been ranked 21st for its FDI strategy and is the only African city listed in this category by fDi Intelligence. Other cities noted include Edinburgh, Hong Kong and Chicago.