Why Cape Town is Africa's gem

Houses in Cape Town with a view of Table Mountain and the Atlantic Ocean    PHOTO  ;  COURTESY

South Africa: The Barnards, Irishman Andrew Barnard and his Scottish wife Lady Anne Lindsay, moved into their new home in February 1800. This was the Vineyard.

According to the history of the Vineyard written by Jill Baikoff around this time, George III sat precariously on the throne of England: “Napoleon was on his way to glory and Beethoven had completed his first symphony.” Today, more than 200 years later, the house is still called the Vineyard, but it is a hotel. It is a quaint place, seated quietly amidst the whistling leaves of a lush garden under the patient gaze of Table Mountain.

The neighbourhood it sits on is one of the most expensive. Our tour guide, Cledwyn, helpfully points out that the closer you move to the mountain, the more expensive a property gets. The price tag here will set you back anything from Sh50 million.

Not that Cape Town, South Africa, is lost for expensive locations. It boasts a long bewitching coastline straddling both the Indian and Atlantic Oceans. Evelyn Mahlaba, South African Tourism regional director for Africa, laughs when asked what makes Cape Town the city it is. She pauses, looking up at Table Mountain from where our location at The One and Only, a six-star resort in the city.

About 30 minutes’ drive from The Vineyard sit villas on a stretch that typifies the Cape Town scenario. High up on a hill, these properties command an impressive view of Table Mountain and the scenic beach of Hout Bay along the Atlantic Ocean.

A local magazine advertises a house being sold in the Western Cape overlooking the Atlantic. The price tag? R19.9 million (Sh153.6 million).

Another hour’s drive brings you to what local tourism stakeholders call the wine routes, but it is not just the wine-making business that is thriving here. A new concept is coming up: living on a wine estate. Golf estates are no longer the ultimate lifestyle symbol; they are many in this part of the continent.

A South African publication, Business Day, cites a report that places Cape Town as one of the cities increasingly attracting wealthy investors.

An interesting observation, however, points not only to the quality of developments and wealth in the city but also the lifestyle it provides. Singled out are fine dining experiences and, of course, the wine legacy.

 Wealth report

The report quotes a survey by New World Wealth, which revealed that the city is one of the world’s top 20 second-home buying destinations among global multi-millionaires. It is in 17th place in the survey, pipping traditionally sought-after property hotspots like France’s St Tropez and Cannes.

 

The same scenario is replicated in the Knight Frank Wealth Report for 2015, which singles out Cape Town as one of the five prime residential areas in the world, narrowing down to a street, Main Road, Green Point: “The local area was boosted by the legacy of the World Cup, and huge infrastructure investment. Restaurateurs such as Manos and Beluga have improved the local lifestyle offer. Add in world-class sports facilities, the waterfront, the city centre and views of Table Mountain...this is the street to watch in 2015.”

But the wealth report goes further to point to Africa as the next frontier for growth. In the world’s top 40 cities, most important for ultra-high net worth individuals in 2015, only two African cities make the cut. Johannesburg and Cape Town, both in South Africa. It is not all gloom for Nairobi, though, with the city coming up as one of Africa’s leading economic hubs. “Generally, rents are perceived as good value by international firms, suggesting there is room for healthy future,” says the report.

The interest in Cape Town has seen property prices and rent values appreciate. The Prime Global Rental Index shows Cape Town recorded a 6.5 per cent increase between September 2013 and September 2014. Nairobi recorded a nine per cent increase in the same period.