Atlantic Seaboard holiday home market

Private Property South Africa
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Learn about the property market and attractions in the Atlantic Seaboard, from local property experts.

What kind of return can investors expect?

Basic studios start at around R800/night with world-class villas going for up to R150,000/night for the pinnacle of style and luxury. As a starting point, owners can expect a rental return on a daily rate of around 7% - 15% of your usual monthly rate. Thereafter adjustments are made according to number of guests, length of stay and time of year. Peak local demand is over the festive season while foreign tourists following the sun arrive in numbers from November till March. Premiums are paid for views, location to the beach and amenities, while outdoor space and security remain in demand.

Beverley Delit: Principal owner, Accommodation Warehouse

What advice would you give on getting into the market?

Holiday rentals are definitely a lucrative prospect to consider, particularly for owners who can commit to holiday rentals for most of the year but may also require occasional use of their properties. The Atlantic Seaboard is the ideal location for this with clients travelling year-round.  Keep in mind when investing for this purpose that some areas are better known to prospective guests; for example, Camps Bay always appeals to visitors from abroad. Consult with a professional villa marketing and management company to ensure that your property is receiving a high level of marketing exposure, providing guests with a seamless and memorable villa experience and maintaining your investment.

Gaby Abel: Managing director, Capsol

What attracts visitors to rent in this area?

The Atlantic Seaboard has come to almost stand alone as a destination where travellers desire to stay in a scenic, safe and vibey central location and explore the wide range of Cape offerings. The now famous Camps Bay beach has also been voted one of the best in the world. This area has become world-renowned for jet-setters, beautiful people, magnificent views, classy restaurants and luxury offerings. If foreign currency is used, then all this is obtainable at a far more reasonable price than similar destinations around the world. What better location is there that offers so much?

Derek Grobler: Last Minute Cape Villas

This article originally appeared in Neighbourhood, Sunday Times.

Take a spectactular journey through the Atlantic Seaboard here:

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