We started Diaspora House with a mission to collectively own real estate across Africa and the Diaspora, and it’s great to see how much progress we’ve made in three short months. After the trial, we will use the learnings to improve our acquisition process across Africa’s prime cities, and the next obvious one is Cape Town.
Cape Town is more than just a tourist destination; it’s a thriving economic and cultural hub with a real estate market offering unique opportunities for diaspora investors. With its strategic location, diverse property offerings, and stable investment climate, the city is an attractive gateway for Africans in the diaspora looking to build wealth and maintain a connection to the continent. The city was appealing because it’s becoming the prime destination for African tourists with the removal of visas between South Africa and countries such as Ghana, Kenya and Tanzania. When the AFTCA and a visa-free Africa come to life, Cape Town will be positioned as the prime destination for these tourists.
Cape Town consistently ranks as one of the world’s most beautiful cities. Its stunning landscapes, from Table Mountain to pristine beaches, and vibrant cultural scene make it a magnet for international tourists and expatriates. South Africa recently introduced their Digital Nomad Visa, making it easier for more people to live and work in the city. This global appeal drives demand for short-term rental properties, allowing investors to earn a steady income from high-occupancy tourism seasons.
Cape Town’s real estate market has consistently grown, particularly in high-end neighbourhoods like Camps Bay, Clifton, and the Constantia Valley. These areas have become synonymous with luxury living and command premium prices, making them ideal for long-term capital appreciation. Emerging areas such as Woodstock and Salt River are also rising, offering affordable entry points for investors seeking significant future returns. We have spent time in well-known neighbourhoods such as Gardens, Greenpoint, and Seapoint, and they are becoming very attractive for investment opportunities.
The demand for rental properties in Cape Town is strong across both the residential and commercial sectors. Young professionals, students, and expatriates contribute to a robust long-term rental market in residential areas. On the commercial side, Cape Town’s business and tech hub role fuels demand for office spaces, particularly in emerging business districts like Century City.
Let’s not talk about Cape Town without addressing the elephant in the room. The city has an Airbnb crisis. Caleb Maru wrote about it here. This is causing a housing shortage for locals, and more property investments are pushing them further away from the city. As much as we want to jump the gun and try to solve this problem, our first step is education. We want to learn about the city and address these challenges. While profit-first as an investment community, we believe the impact and profit can co-exist. We plan to find models to help fund affordable housing in the future. We spoke with Bitprop, which is already solving parts of this problem. We have a lot to learn from them.
Cape Town, often dubbed the "Silicon Cape," is rapidly cementing its reputation as a burgeoning tech hub in Africa. With a thriving ecosystem of startups, tech incubators, and a growing number of international companies setting up shop, the city has become a magnet for innovation and investment. Cape Town's appeal lies in its highly skilled talent pool, excellent infrastructure, and vibrant cultural scene that attracts local and global talent. Key sectors driving growth include fintech, edtech, and healthtech, with startups like Yoco, SweepSouth, and Aerobotics gaining international acclaim. The city's proximity to top universities, supportive government policies, and strong venture capital interest further fuel its rise as one of Africa’s leading tech destinations.
South Africa offers one of the continent's more stable and transparent property markets. Foreign ownership is straightforward, with clear legal frameworks to protect investors. Cape Town benefits from reliable infrastructure, well-regulated property transactions, and access to skilled professionals, such as estate agents and legal experts, who simplify the investment process for those abroad.
For diaspora investors concerned about high costs, Diaspora House provides a cost-effective way to enter the market, learn and generate returns in the short term. We currently propose between $5,000 and $10,000 per investor and start with one apartment in a good location. Next, we will buy an entire floor and then the building. We caught up with Amber Ashley James, a wine entrepreneur based in Cape Town, and discussed the idea of a founders’ house. This is an excellent opportunity for Diaspora House to invest collectively.