Cape Town has proven its mettle on the global stage, securing its position as the sixth best-performing market for prime residential property in 2025 thus far.
The latest data from Savills’ World Cities Prime Residential Index highlights the growing allure of the Mother City for wealthy property buyers who are lured by its unique lifestyle offerings.
Despite a general slowdown in global residential markets due to macroeconomic fluctuations and political uncertainties, Cape Town’s prime property market has shown remarkable resilience.
After a strong showing in 2024, the overall growth rate has dipped from 2.2% annually to a more modest 0.7% in the first half of 2025. However, the city’s capital value growth shines through with an impressive 3.2%, distinguishing it ahead of renowned cities such as Sydney, New York and London.
In terms of absolute pricing, Cape Town remains remarkably affordable. At €2 600 (R54 412) per square metre, it contrasts sharply with the world’s top performer, Tokyo, where prices soar to €22 900 (R470 431).
This affordability combined with lifestyle-driven demand signifies a compelling case for investment, as many buyers demonstrate less sensitivity to short-term economic conditions.
According to Savills, the trend is clear: there is an increasing preference for high-quality and safe residential spaces. This surge in demand is particularly noticeable in sought-after locations where property supply remains constrained.
Not only do cities with robust lifestyle appeal, such as Cape Town, Amsterdam, Lisbon and Sydney, show positive growth, but they also seem to be insulated from the volatility affecting less desirable markets.
Andrew Golding, CEO of Pam Golding Properties, commented on this phenomenon, stating, ‘The lifestyle-driven nature of these markets continues to attract buyers, many of whom are less sensitive to short-term economic fluctuations,’ as per a report by BusinessTech.
Forecasting for the latter half of 2025 remains positive, with expectations of continued capital value growth across these desirable locations, signalling a strong recovery as buyer sentiment improves and demand outpaces supply.
As the year progresses, Cape Town’s prime residential market continues to capture the attention of discerning investors, reaffirming its status not only as a living haven but also as an attractive investment opportunity on the global stage.
First published on Cape Town Etc
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