Real Estate in Cape Town, South Africa
Last updated on May 12, 2024
Summary: The average cost of a nice 2 bedroom home in Cape Town, South Africa is around $400,000 USD. A nice 3 bedroom home in Cape Town is around $500,000 USD. These properties typically include modern amenities such as air conditioning, stainless steel appliances, and updated bathrooms. Foreigners are allowed to purchase property in Cape Town, however, they must obtain a permit from the South African Reserve Bank. An expat should search for a home to buy in Cape Town by researching the different neighborhoods and areas to find the best fit for their needs. The most desirable neighborhoods in Cape Town include Sea Point, Camps Bay, and Clifton. These areas are known for their beautiful beaches, stunning views, and vibrant nightlife.
How do I find a place to live in Cape Town?
We asked expats how they chose their neighborhood and found a place to live. They answered:
"One of the best ways to find a place to live in Cape Town is to use online resources such as property websites, classifieds, and real estate agents. Property websites such as Property24, Private Property, and Gumtree are great resources for finding rental properties in the area. Additionally, classifieds such as OLX and Junk Mail are also useful for finding rental properties. Lastly, real estate agents are a great resource for finding a place to live in Cape Town, as they have access to a wide range of properties and can help you find the perfect place for you," explained one person living in Cape Town, South Africa.
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What is a typical expat home or apartment like in Cape Town?
"Expat homes and apartments in Cape Town tend to be modern and luxurious. Many of them feature large windows that offer stunning views of the city and the surrounding mountains. Expat homes and apartments often come with amenities such as swimming pools, gyms, and private gardens. They are typically located in secure, gated communities with 24-hour security. Expat homes and apartments in Cape Town are also known for their spacious interiors, with plenty of room for entertaining guests," said one person in Cape Town.
What is the average cost of housing in Cape Town?
If you are thinking about moving to Cape Town, cost of living in probably a key consideration. Expats commented about the cost of housing:
"The average cost of housing in Cape Town, is generally quite high. Prices vary depending on the area and type of property, but the average cost of a two-bedroom apartment in the city centre is typically around R20,000 per month. Prices for larger homes in the suburbs can range from R15,000 to R30,000 per month," said one person in Cape Town.
Should I buy or rent a home in Cape Town?
If you have not spent a lot of time in Cape Town, you should rent before even thinking about buying. We asked expats there about the buy vs. rent decision:
"Buying a home in Cape Town can be a great investment. The city is known for its beautiful scenery, vibrant culture, and excellent quality of life. However, it is important to consider the cost of living in the area before making a decision. Renting can be a great option for those who are not ready to commit to a long-term purchase, as it allows for more flexibility and can be more affordable in the short-term. Ultimately, the decision to buy or rent should be based on individual needs and preferences," said one person in Cape Town.
What do I need to know when buying property in Cape Town?
When we asked expats what advice they would give a foreigner before buying a property in Cape Town, they said:
"1. It is important to research the area you are interested in buying property in, to ensure it is safe and has the amenities you need. 2. It is also important to research the local market to ensure you are getting a fair price for the property. 3. Make sure you understand the legal process of buying property in South Africa, including the transfer process and any taxes or fees that may be applicable. 4. It is also important to understand the local zoning laws and regulations, as well as any restrictions on the type of property you can buy. 5. It is also important to understand the local infrastructure, such as water and electricity, and any other services that may be available. 6. Finally, it is important to have a good understanding of the local economy and job market, to ensure you are making a sound investment," said one foreigner living in Cape Town, South Africa.
Are foreigners allowed to own property in Cape Town?
When we asked expats what advice they would give a foreigner before buying a property in Cape Town, they said...
"Yes, foreigners are allowed to own property in Cape Town. There are no restrictions on foreign nationals purchasing property in the country. However, they may face some challenges when it comes to financing the property, as South African banks typically require a larger deposit from foreign buyers. Additionally, non-residents may be subject to certain taxes and fees when purchasing or selling property in South Africa. It is advisable for foreigners to consult with a local attorney or property expert to ensure they understand the legal and financial implications of owning property in Cape Town," explained one person living in Cape Town, South Africa.
What appliances are typically included in a rental?
We asked foreigners in Cape Town what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included:
"Rental properties in Cape Town typically include a refrigerator, stove, oven, and washing machine. Depending on the property, other appliances such as a dishwasher, microwave, and air conditioner may also be included," said one in Cape Town.
Additional Information about Searching for a Home in Cape Town:
We asked foreigners in Cape Town what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included...
"Expats searching for homes in Cape Town often begin by browsing online property listings on websites such as Property24, Gumtree, and Private Property. They may also join expat forums and social media groups to seek advice and recommendations from fellow expats who have already gone through the process of finding a home in Cape Town. Another option for expats is to engage the services of a local real estate agent who is familiar with the area and can help them navigate the local property market. These agents can provide valuable insights into the best neighborhoods, rental prices, and available properties that suit their needs and preferences. Expats may also consider visiting Cape Town in person to explore different neighborhoods and get a feel for the city before committing to a specific area. This can help them make a more informed decision about where they would like to live and what type of property they are looking for. Word of mouth can also be a valuable resource for expats searching for homes in Cape Town. Networking with other expats, locals, and colleagues can lead to potential rental opportunities that may not be advertised online or through real estate agents. Lastly, expats should familiarize themselves with local rental laws and regulations, as well as the standard lease agreements and terms in South Africa. This will help them better understand their rights and responsibilities as tenants and ensure a smoother transition into their new home in Cape Town," explained one foreigner living in Cape Town, South Africa.
About the Author
Betsy Burlingame is one of the founders of Digital Nomad Exchange and the Founder and President of Expat Exchange. She launched Expat Exchange in 1997 as her Master's thesis project at NYU. Prior to Expat Exchange and Digital Nomad Exchange, Betsy worked at AT&T in International and Mass Market Marketing. She graduated from Ohio Wesleyan University with a BA in International Business and German.
Some of Betsy's articles include 12 Best Places to Live in Portugal, 7 Best Places to Live in Panama and 12 Things to Know Before Moving to the Dominican Republic. Betsy loves to travel and spend time with her family. Connect with Betsy on LinkedIn.
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