Prime residential prices in Cape Town skyrocketed in 2022, according to the 2023 Wealth Report by Knight Frank, which found that Cape Town shot up the Prime International Residential Index (PIRI) – climbing to 31st from 94th the year prior.

The PIRI tracks movements in luxury prices across the globe’s top residential markets. The report said that Cape Town’s prime residential prices increased by 7.3%.

“Having slipped due to feeling the effects of the pandemic on a third-world country, (Cape Town) has again proved incredibly resilient and is once again attracting both South Africans from other territories as well as foreign buyers looking for second homes and to enjoy the beauty, lifestyle and value that the city has to offer,” said Nick Gaertner, director and COO of Knight Frank South Africa.

Dubai saw the largest prime residential increase in 2022, with a 44.2% jump. Knight Frank said that Dubai had cemented its status as a global hub for extreme-high-net-worth individuals, which was assisted by several visa incentives. Aspen, USA (27.6%), Riyadh, Saudi Arabia (25.0%), Tokyo, Japan (22.8%) and Miami, USA (21.6%) completed the top five.

Monaco has the most expensive property market, where $1m will only get a buyer 17sqm. However, Cape Town offered excellent value as $1m would get a buyer 218sqm of prime property.