With international demand accelerating and Cape Town making record infrastructure investments, a rare opportunity is emerging within one of South Africa’s most dynamic luxury property markets.
- Cape Town’s property prices increased by 8.5% year-on-year in 2025, significantly above the national average of 5.2%, and is attributed to an increased demand driven by domestic migration and foreign investment[1].
- The luxury property scene is booming, with international buyers spending over R1 billion on Cape Town real estate in just five months of 2025[2], and the year is far from over.
- Hout Bay is attracting significant international buyer interest: property transactions have already passed R600 million this year, recording 37 foreign transactions in 2025 alone, with sales ranging from R5 million to R25 million, chasing last year’s staggering R1.3 billion mark[3].
- It’s not surprising that Hout Bay’s property market has shown consistent growth, with average selling prices increasing by approximately average 6.7% per annum, significantly outpacing the national average, but higher end properties & new developments can see up to 9.5% growth per annum. Revo Property has seen this level of capital growth reflected in two projects they’ve represented within the past 18 months.
Cape Town’s economy outperforms the national average, with lower unemployment, a thriving tech sector, and robust tourism industry. While Cape Town’s Atlantic Seaboard has long dominated South Africa’s luxury real estate conversation, Hout Bay is emerging as the region’s most compelling new investment frontier, combining substantial infrastructure investment, strong price appreciation, and a distinct lifestyle offering that attracts both local and international buyers seeking value with premium amenities.
Plans are underway to redevelop Hout Bay Harbour into a destination akin to Cape Town’s V&A Waterfront, promising a blend of retail, dining, and leisure experiences, as well as a R50 million tidal pool project[4] at Hout Bay beach set to enhance community access to the beach, benefiting both residents and visitors.
“Elora, a new development situated at 43 Victoria Avenue, a mere 5-minute walk from Hout Bay’s beachfront, embraces the rhythm of Hout Bay’s coast offering the rare balance of village calm and coastal energy,” comments Emanuel Germanis, CEO and founder of Revo Property.
Elora is a unique development in a market defined by limited availability and high demand, with 19 apartments comprising a mix of studio, one-, and two-bedroom homes – each designed with thoughtful layouts and seamless indoor–outdoor flow. Clean lines meet gentle curves, open spaces invite light, and natural textures echo the wood, sand, and stone of the surrounding coastline.
Large windows and private balconies frame breathtaking ocean views, drawing the tranquillity of the bay into everyday moments. Just a short stroll away, sunlit cafés, boutique shops, and transport routes connect you seamlessly to the heart of the village – a rare harmony of serenity and convenience.
The City of Cape Town has outlined plans for significant infrastructure upgrades in Hout Bay, including improved road networks and public amenities, ensuring the area’s continued development and appeal. In addition, the City of Cape Town has committed R6 billion to upgrade wastewater treatment facilities in the area[5], supporting sustainable growth and infrastructure development.
“With landmark projects like La’Mare and The Beach House defining Hout Bay’s high-end property scene, Elora marks the next phase of growth – offering a distinctive combination of architectural refinement, prime positioning, and strong investment potential,” says Germanis.
As demand for premium, well-positioned properties continue to rise, Elora stands as a rare opportunity to secure lasting value in a market on the ascent. With its strong fundamentals – location, design integrity, and limited supply – the development represents not only a sound investment, but a defining chapter in Hout Bay’s ongoing evolution.
Short-term rentals are thriving – the average monthly revenue for Airbnb hosts in Hout Bay approximately $20,308, with an occupancy rate of 44% and an average daily rate of $197, highlighting the area’s appeal to short-term visitors, according to the AirROI 2025 report on Hout Bay Airbnb data.
“Properties in the top 10% of the market achieve occupancy rates exceeding 81%, underscoring the demand for quality accommodations,” explains Germanis.
Priced from R2.595 million (VAT included, no transfer duties), Elora presents a limited opportunity to own within Hout Bay’s emerging luxury enclave. The exclusive two-bedroom residences – priced up to R5.125 million – capture sweeping ocean views and the essence of refined coastal living.
With limited residences available and demand expected to be high, investors are encouraged to prepare early. Sales go live on Thursday, 6 November 2025 at 12pm. By getting pre-approved with BetterBond, buyers can confirm their financing in advance – ensuring they’re ready to secure their preferred apartment the moment sales open.
For more information, visit: www.elorahoutbay.co.za