The combination of a favorable exchange rate, a shortage of available properties (partly because of a diminishing supply of developable land) and the pleasant climate has driven up prices along Cape Town’s Atlantic coast at unprecedented rates, agents say.
“With the downturn in the local currency, it’s making it very cheap for foreigners to buy,” said Denise Dogon, the chief executive and founder of Dogon Group Properties.
Over the last year, prices across all ranges have risen an average of 25 percent to 30 percent, with luxury apartment values escalating the most, said Laurie Wener, managing director for the Western Cape region for Pam Golding Properties, a real estate firm covering sub-Saharan Africa.
“The Atlantic seaboard has really become the place where people want to retire,” she said. “There are some very luxurious apartments to choose from with views of sea and mountains. And from an investment point of view, it’s a very recession-proof market. It’s quite densely populated, but prices hold.”
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