Property

Major shift in Cape Town’s luxury property market

Kirsten Minnaar • 24 January 2026

Cape Town’s luxury property market saw a shift in 2025, with rising prices, increased sales above R50 million, and a growing preference for discreet off-market transactions now defining buyer behaviour as demand outpaces supply.

DG Properties managing director Alexa Horne explained that these trends are now defining how the high-end market operates as it moves into 2026.

She said 2025 was not simply a short-term surge. Instead, it was a structural change in buyer behaviour and market confidence, which reset expectations for the Cape Town property market.

“We saw a level of activity, confidence and sophistication that has permanently raised the bar for Cape Town’s luxury market,” Horne said.

At the very top of the market, properties priced above R50 million – and increasingly above R100 million – shifted from occasional trophy acquisitions to a more competitive, active segment.

Some of South Africa’s most significant residential transactions were concluded across Upper Constantia, Bishopscourt and the Atlantic Seaboard, reaffirming Cape Town’s position as the country’s undisputed luxury capital.

The pricing of Cape Town’s properties was only one shift in the market, though. The way deals were done also stood out, Horne said. One of the defining shifts of 2025 was the continued rise of private, off-market transactions.

Ultra-high-net-worth buyers and sellers increasingly favoured discretion, trusted networks and confidential negotiations over public listings.

“Many of our clients are not driven by visibility. They want privacy, certainty and expert guidance – and they want transactions handled quietly,” she said.

This mirrors global luxury markets such as London, New York and Sydney, where off-market deals have become the norm rather than the exception at the upper end.

Beyond residential homes, this demand extended into lifestyle-driven investments, including boutique wine farms in Tulbagh and the Swartland, as well as unique agricultural and leisure properties aligned with long-term lifestyle planning.

Luxury properties dominate in Cape Town

While the Atlantic Seaboard remains South Africa’s most valuable residential strip – with prices reaching up to R170,000 per square metre – 2025 saw the Southern Suburbs firmly cement their position alongside it.

“Upper Constantia and Bishopscourt delivered exceptional results last year,” Horne said. “The calibre of buyers and transactions in these areas reflects their global appeal, not just local demand.”

These suburbs now rank among the most sought-after luxury residential addresses on the African continent, combining space, security and lifestyle appeal with proximity to the city.

A shortage of premium stock in prime locations also remained a key feature of 2025, Horne said. This drove both pricing strength and competition. In response, several high-end developments progressed across the city.

This includes Steenberg Green 1 and 2, The Clifford, The Mellow Wood, Beau Glen, The Gemini, Luxia Ravine, the Kerzner Estate, Embassy Edition, The Quarry and Ave Le Sueur.

“Buyers are increasingly looking for turnkey homes with exceptional design, strong security and minimal compromise. Developments that deliver on these expectations are being absorbed quickly,” Horne said.

Supportive national conditions, including stabilising inflation and interest rate cuts, further underpinned confidence through the second half of the year.

Horne added that, in 2025, the luxury buyer profile last year was shaped by several overlapping forces. These include –

Continued semigration from Gauteng and KwaZulu-Natal
Sustained interest from Germany, the United Kingdom and buyers across the African continent
Renewed international confidence following South Africa’s removal from the FATF grey list

With limited stock in premium areas, competition intensified, particularly for well-located, high-quality homes, reinforcing the move towards off-market transactions.

The luxury rental market echoed these trends, Horne noted. Long-term rentals in Upper Constantia, Bishopscourt, the V&A Waterfront and the Atlantic Seaboard regularly exceeded R100,000 per month.

At the same time, Horne said short-term luxury rentals also performed well, with standout properties surpassing R200,000 per month.

“Demand continues to exceed supply in the premium rental space. We’re seeing strong interest from semigrants and international clients securing homes ahead of relocation or extended stays.”

Looking ahead, Horne explained that the conditions that drove momentum in 2025 remain firmly in place.

Easing interest rates, restored international confidence and a persistent shortage of luxury stock are expected to sustain activity through 2026, particularly across Cape Town’s peak summer season.

“The market is entering 2026 from a position of strength. Buyers are decisive, sellers are realistic, and Cape Town’s lifestyle appeal continues to differentiate it on a global stage,” Horne said.

With constrained supply and enduring demand, Cape Town is set to retain its position as Africa’s leading luxury property destination in the year ahead.