Property

Rich South Africans are rushing to buy these properties

Kirsten Minnaar • 6 January 2026

South Africa’s high-value property market is experiencing a major shift as wealthy buyers and developers increasingly prioritise climate resilience alongside traditional markers of luxury.

With the global property market already feeling the financial impact of climate volatility, a property’s ability to withstand extreme weather is becoming a critical factor in its long-term value and insurability.

According to a 2023 report from McKinsey & Company, the value of at-risk residential property in coastal cities globally could exceed $1 trillion (around R16.48 trillion) by 2050.

This is no longer a distant threat, experts warned, but a present-day reality influencing buying decisions and risk assessments.

“We’re seeing a fundamental change in buyer psychology, especially at the top end of the market,” said Lew Geffen Sotheby’s International Realty in Noordhoek’s managing director, Nancy Massing.

“High-net-worth individuals are no longer just asking about the view or the square metreage. They’re asking, ‘Will this home be insurable in 15 years, and how will it perform in a heatwave or a severe storm?’”

Massing explained that wealthy buyers are looking for legacy assets, and vulnerable properties simply do not fit that bill.

This awakening is driven by tangible economic pressures. In coastal areas from Miami to Cape Town, rising sea levels and storm surges have led to skyrocketing insurance premiums.

In wildfire-prone regions like California and the Western Cape, properties without adequate defensible space and fire-resistant materials are facing similar financial headwinds.

Worryingly, some insurers are even pulling out of high-risk markets entirely, leaving property owners at a major risk.

In response, a new era of climate-resilient design is emerging, moving beyond mere sustainability to focus on survivability and autonomy.

Architects and forward-thinking developers are now working to embed resilience into the DNA of new luxury builds, she said.

Key features

There are several key features used to build climate-resilient buildings, which are now moving into the mainstream. For example, in flood-prone zones, homes are being raised well above mandatory codes.

“In new developments along the Cape Peninsula, we’re seeing elevated foundations become a major selling point, directly addressing concerns about future storm surges and flash floods,” Massing noted.

In response to the growing wildfire risk, properties are incorporating non-combustible cladding and automated exterior sprinkler systems. Landscaping is also being strategically designed to create defensible space.

Massing added that, as heatwaves become more frequent and intense, passive cooling design is crucial for mitigating their impact.

Features like high thermal mass walls, strategic orientation for cross-ventilation, and deep overhangs are valued for keeping homes comfortable without over-reliance on vulnerable air conditioning systems.

Finally, Massing explained that the most sought-after resilient homes function as self-sufficient ecosystems.

“There’s a growing demand for full energy independence through solar power and battery storage, coupled with rainwater harvesting and greywater systems,” she said.

“This autonomy ensures continuity and comfort even during load-shedding or municipal water shortages.”

The conversation around property value is evolving, Massing said. “Green” certifications, such as those for energy efficiency, remain important.

However, the new language of luxury is centred on “grey” infrastructure – the bones of a building and its ability to withstand stress.

“We are starting to see a clear valuation premium for properties that are ‘climate-certified’ or marketed with resilience as a core feature,” Massing explained.

“It’s a compelling competitive advantage. A beautiful home that is also strong, adaptable, and enduring is fundamentally a smarter investment.”

For developers, the message is clear: integrating resilience from the blueprint stage is no longer an optional extra, but a critical component of marketability and long-term asset preservation.

For buyers, particularly in the luxury sector, climate-aware choices are transitioning from a smart consideration to an essential criterion for safeguarding a significant financial and legacy investment.