Property

Luxury property boom in South Africa

Kirsten Minnaar • 9 November 2025

South Africa’s housing market is gaining momentum amid improving economic conditions, with demand for luxury properties surging – particularly in Cape Town, Durban, and Johannesburg.

Pam Golding Property Group CEO Dr Andrew Golding said improving economic sentiment, fuelled by a series of interest rate cuts and contained inflation, is behind this surge.

“The outlook is further buoyed by an anticipated reduction in fuel prices and, notably, the country’s exit from the Financial Action Task Force (FATF) grey list, all of which is positive for investor confidence in general,” Golding said.

National house price growth remains on an upward trajectory, rising to 4.0% in September 2025, according to the Pam Golding Residential Property Index. The Western Cape continues to lead with an annual growth of 7.9%.

Planned residential building activity is also rebounding, driven by a marked increase in approvals for flats and apartments, particularly in prime Western Cape markets.

“In the luxury and ultra luxury segment, the Western Cape and Cape Town in particular continues to experience high levels of demand, particularly in the City Bowl and Atlantic Seaboard,” Golding said.

In these areas, property sales of R50 million and even beyond R100 million are no longer unusual exceptions. “Prices are surpassing expectations amid significant interest from a mix of local, national, and international buyers,” he said.

The luxury boom is not limited only to the Western Cape. There is also a strong appetite for high-end coastal living in KwaZulu-Natal.

Here, Pam Golding Properties achieved R634 million in sales within just two days of launching Beachwood Coastal Estate, a premier development on Durban North’s pristine beachfront.

Golding said this milestone set a new benchmark for land values in the province, achieving over R10,000 per m².

Purchasers included primarily local buyers, as well as buyers and investors from upcountry, Dubai, and Tokyo. Villas sold for up to R25 million, apartments for around R15 million, and vacant erven reached R20 million for 1,700 m².

Golding said Johannesburg‘s luxury market appears to be slowly but surely reviving, with high-net-worth buyers coming from South Africa and other African nations.

“These buyers are drawn to secure, amenity-rich estates or to established suburbs offering boomed, access-controlled streets that combine strong community appeal with enhanced security, without the constraints of estate living,” Golding said.

Proximity to leading schools, business hubs, and lifestyle amenities remains a key consideration, with Sandton, Fourways, and Midrand standing out as preferred nodes.

Africa’s other luxury hotspots

R49.97 million beachfront villa in Lamu, Kenya

“Further afield, Mauritius continues to attract affluent global residents seeking a secure, tranquil lifestyle in a tropical setting,” Golding said.

“The island’s permanent residence opportunities through property investment, together with its modern healthcare, sporting, and retail infrastructure, have strengthened its appeal as both a lifestyle and investment destination.”

“With its blend of modern convenience and natural beauty, Mauritius is drawing a growing expatriate community seeking a place to live, work, and invest in a safe and welcoming environment.”

Similarly, Golding added, Kenya’s luxury market continues to perform with steady confidence, underpinned by heritage, lifestyle, and enduring value.

In Nairobi’s ultra-prime suburbs, including Muthaiga, Thigiri, and Runda, activity remains robust, with landmark residential transactions reflecting strong demand from local buyers seeking address and distinction.

By the end of 2026, Nairobi’s status as a diplomatic and lifestyle capital will be further elevated, as it will become one of just four cities worldwide to host a UN headquarters, alongside New York, Geneva, and Vienna.