Investor hot spots in the Western Cape
Western Cape province is a vibrant property market for investment. Which hot spots can be considered?
It is no secret that the Western Cape is fast becoming a hot spot for investors seeking new opportunities. As the province with the highest property prices in the country, it can be tricky to know where to start looking for investment opportunities.
Barbara Larney of RE/MAX Wine and Whales explains that she has experienced a surge of interest from investors across various suburbs and towns within the Western Cape, especially over the last three months.
To shed some light on the current trends, Larney shares some insights on the current investor hot spots and looks into the various options available to savvy property investors.
Investor hotspots
Entry-level investments
There are a few underrated neighbourhoods in the Western Cape with property options to suit all budgets. Price points can vary, but typically, investors can find options starting from around R650,000 to R900,000 for an apartment to just under R2.5 million rand for a 3- or 4-bedroomed house.
“These neighbourhoods often offer a quieter, more laid-back lifestyle compared to the bustling city areas. Buyers can find a range of property options, from apartments to family homes, areas including Paarl Central, Paarl Central East, Groenheuwel, Paarl North, Hoog En Droog, De Zoete, Inval, Esterville, and Courtrai.”
“In the past three months, we’ve observed increased interest in these areas, with more buyers looking for affordable housing options while still enjoying proximity to essential amenities,” says Larney.
Building a Property Portfolio
Investors are also drawn to the Western Cape as the place to start building their investment portfolios, largely owing to its popularity, which makes it a safe spot to generate rental income.
According to Larney, areas that attract buyers looking for multiple properties include the likes of Sandbaai, Kleinmond, Val de Vie Estate, Franschhoek, Onrus, Boschenmeer Golf Estate, Pearl Valley, Arabella Country Estate, Hermanus, Fernkloof Country Estate, and Gansbaai. Entry points in these popular investment portfolio suburbs usually range from around R3 million to R8.9 million.
“In the past three months, we’ve seen a surge of investors looking to purchase multiple properties in these areas, likely driven by strong rental demand and the potential for property value growth,” she says.
Countryside investments:
There are also a few countryside towns within the Western Cape that provide a serene, nature-centric environment, attracting those seeking an escape from the hustle and bustle of the city. Entry-level homes in these types of towns are still affordable, often starting at R1.5 to R2 million.
“Buyers can enjoy spacious properties, beautiful landscapes, and a slower pace of life in areas such as Gansbaai, Pearly Beach, Baardskeerdersbos, Villiersdorp, Franskraal, Genadendal, and Greyton. In fact, over the last three months, we have observed a notable increase in city residents looking to relocate to rural towns. This surge may be attributed to a growing preference for a serene and nature-centric lifestyle and remote working,” says Larney.
“It can be daunting when trying to decide where to make an investment purchase, which is why it can be so helpful to lean on the advice and guidance of a reliable real estate professional. Those looking for guidance on their real estate investment decisions should contact their local RE/MAX office for some expert advice,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Writer: Kayla Ferguson
