According to Knight Frank’s 2018 Wealth Report, there was a staggering 56% increase in property investment in 2017.
The report highlights that in spite of stock markets reaching record highs in 2017, there is an uncertainty around tax reform and politics. As a result, an increasingly professional pool of private capital is considering property as a safer investment option.
The survey revealed that an increase in risk-taking to yield higher returns was driving the property boom and it predicts that the appetite for real estate would continue to increase as investors grapple with a low-return equity environment. 38% of the UHNWI’s also indicated that their portfolio already includes overseas properties, the balance in their own country.
According to the Wealth Report’s Prime International Residential Index (PIRI 100), a luxury residential market performance by global rank and geography, Cape Town grew by 19.9% between 2016-2017. This puts Cape Town in the number two position globally, after Guangzhou in China, which grew by 27% during that period.
“A world-renowned business address, Cape Town CBD is now emerging as a sought-after residential postal code too. The city’s central core extends from the Harbour, with Stand Street and the Railway Station at its core. Once dominated by high-rise office blocks, an injection of new capital and innovative ideas is changing the city’s skyline.”