Best Residential Areas in Cape Town for Property Investment

Cape Town has long been a desirable location for holiday goers and, more recently, for local and international property investors. For those looking to invest in residential property in Cape Town, knowing which areas are the best to invest in can help determine the cost of the investment and deliver the best return on investment. 

There can be no doubt that deciding which area to invest in can take considerable time. Before making an investment, it is critical to research specific areas. It is equally important to eradicate suburbs that are not secure and are not easily accessible and well situated. Suburbs that have displayed growth but are not within a reasonable distance of good schools, shopping centres, and employment opportunities are also less desirable as investments.

FMS Sales & Leasing can assist you in making the best decision based on the current property market and your finances. With so many beautiful areas across the peninsula, choosing the safest and most aesthetically pleasing area can become a struggle. There are a few key questions that need to be answered first;

What is the average house price in the preferred area? 

Is the investment affordable?

Is the desired rental achievable?

We have listed a few of the more desirable areas, some of which FMS currently has real estate available in, that may help in deciding which residential area to invest in:

Sea Point and Green Point - Offering a mix of apartments and houses, these two Atlantic Seaboard areas are popular with digital nomads. Located near the CBD, it offers a variety of shops, restaurants, and entertainment options.

Blouberg - Known for its stunning views of Table Mountain and its world-class kiteboarding and windsurfing conditions, Blouberg is located North of the CBD. Its laid-back lifestyle and beachy vibe make it popular with tourists and families during the Summer months. 

Woodstock - A rapidly gentrifying suburb east of the city centre, Woodstock is becoming known for its trendy cafes, art galleries, and street art. The area has seen significant development in recent years, with many old industrial buildings being converted into apartments, offices, and retail spaces.

Observatory - Lovingly called "Obs," this diverse suburb is home to a large student population. The lively area is known for its bohemian atmosphere, street art, and trendy cafes.

Pinelands - A quiet, leafy suburb, Pinelands homes are a mix of well-preserved Cape Dutch architecture and large green spaces. Beautiful, accessible area is popular with families, retirees, and young professionals looking for a peaceful place to live.

Rondebosch - A popular Southern Suburbs residential area, Rondebosch is home to several top schools, and one of Africa's top universities, the University of Cape Town. With a variety of shops and restaurants on offer, properties tend to be quite expensive, but offer excellent investment potential due to the high demand for housing in the area.

Newlands -  A leafy, upmarket area coveted for its natural beauty and proximity to Table Mountain National Park, Newlands is a popular residential area with families and young professionals. 

Claremont - An ideal investment for first-time investors, Claremont is a quiet residential area with excellent schools and easy access to the city centre. Properties in Claremont are generally more affordable than other areas within the Southern Suburbs. 

Constantia -  An affluent suburb in the southern part of Cape Town, Constantia boasts beautiful wine farms, historic homesteads, and lush greenery. Its majestic scenic views and walking trails make it an ideal suburb for those seeking a high-end lifestyle.

Muizenberg -  A coastal suburb of False Bay, Muizenberg is known for its beautiful beaches, colourful beach huts, and world-class surfing. It is also popular with tourists and locals alike, offering plenty of restaurants, cafes, and shops within a vibrant community.

The diversity and flexibility of Cape Town offers a wide range of residential areas that are ideal for investment, and which cater to different investment preferences.

As more people adopt the work-from-home lifestyle and look for homes in more scenic locations, gated communities and security estates are currently preferred investment options because they offer safer investments and are in high demand due to their security and lifestyle offerings. 

Whether you're looking for a luxurious beachfront property or a more affordable investment opportunity, there's something for everyone in Cape Town.