February 3, 2025
After finishing as runner-up in 2024, Cape Town has been recognised as "The Best City In The World" by Time Out and we couldn't agree more with Cape Town reaffirming its status as a top destination for both lifestyle and investment. Within Cape Town, the Atlantic Seaboard real estate market—with its breathtaking coastline, luxury developments, and high rental demand—remains the most desirable location for property investors.
At the heart of this sought-after region lies Sea Point, a vibrant suburb known for its cosmopolitan charm, oceanfront promenade, and lucrative property market. If you’re considering a property investment in Cape Town, here’s why Sea Point property should be at the top of your list.
The Atlantic Seaboard is a prestigious coastal stretch in Cape Town, running from the V&A Waterfront through neighborhoods like Green Point, Sea Point, Bantry Bay, Clifton, Camps Bay, Llandudno, and Hout Bay. Often referred to as Cape Town’s "Riviera," the Atlantic Seaboard is famous for its luxury homes, scenic beaches, and high-end lifestyle.
Sea Point stands out as one of the most dynamic neighbourhoods in this area, offering a mix of modern apartments, boutique hotels, and world-class restaurants, all within walking distance of the iconic Sea Point Promenade.
Real estate remains one of the most secure and rewarding investment options in South Africa, particularly in prime locations such as Sea Point. Here’s why:
Sea Point's prime location near Cape Town’s CBD and stunning beachfront makes it a hotspot for rental demand. According to Lightstone Property, rental yields in Sea Point properties range between 5% and 7%, outperforming many other areas. Additionally, AirDNA reports that short-term rentals in Sea Point boast occupancy rates of 65% to 85% during peak seasons, making Airbnb investments highly lucrative.
The Atlantic Seaboard real estate market has consistently shown strong capital appreciation. Over the past decade, Sea Point property prices have increased by 8% to 12% annually, well above the national average (Property24). Luxury developments continue to push property values higher, making it a solid long-term investment.
Sea Point’s proximity to tourist attractions and the city center makes it an attractive location for both long-term tenants and short-term holidaymakers. The average daily rate (ADR) for short-term rentals ranges from R1,500 to R3,500 depending on the season and property type (AirDNA). With year-round tourism, investors benefit from steady rental income.
Investing in off-plan developments in Sea Point offers advantages such as lower entry prices and significant capital appreciation. The South African Property Owners Association (SAPOA) reports that off-plan buyers in prime locations can expect capital growth of 15% to 25% by project completion.
South Africa offers tax deductions for property investors. Under Section 13sex of the Income Tax Act, investors in new residential developments can claim up to 55% of the purchase price as a tax deduction over 20 years (SARS). This significantly lowers taxable income and enhances returns.
According to Lesley Rensburg from DG Properties:
“December 2024 was a bumper season—Cape Town was fully booked throughout. We saw not only international visitors but also many South Africans from other provinces. These visitors showed a keen interest in owning a piece of Cape Town’s stunning coastline. Unlike previous years, 2024 did not experience a winter slump; instead, it was an exceptionally busy period.
This shift indicates that property demand is now growing year-round, whereas previously, we only saw significant traction in the summer months.
There is now a steady stream of buyers looking for properties throughout the year. I anticipate 2025 to be an incredibly busy year for real estate, with interest rates on a downward trajectory and limited availability of properties. This scarcity will drive property prices in the area significantly higher. New developments are selling faster than ever to meet the rising demand for Atlantic Seaboard property.”
As a leader in luxury property development on the Atlantic Seaboard, Berman Brothers Group specializes in creating exceptional, high-end apartments that cater to both investors and homeowners. With a reputation for innovative design and premium locations, Berman Brothers developments maximize rental income, capital growth, and long-term value.
If you're considering a Sea Point property investment, now is the time to act. With demand soaring and prime developments in limited supply, investing in this prestigious Cape Town suburb offers both lifestyle benefits and financial rewards.
