Cape Town ranked 17th on Savills’ global Executive Nomad Index

Now that South Africa has introduced its Digital Nomad Visa programme (May 2024), Cape Town stands to benefit as a key, world-class destination for these international travellers and business people in the global south, says Dr Andrew Golding, chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real estate partner in Africa.

Says Dr Golding: “This year, and comfortably slotting in at number 17, Cape Town features for the first time in Savills Executive Nomad Index, which ranks 25 destinations for long-term remote workers. All either have a digital nomad visa programme, or equivalent, or in the case of the US and European countries, are already part of a large economic bloc that allows free movement of people for living or work. These destinations offer favourable climates year-round, high quality of life and have established prime residential markets.”

Dubai, UAE has retained its lead position, for the second consecutive year, while the UAE capital Abu Dhabi is hot on its heels, moving from fourth place to second this year.

“Dubai and Abu Dhabi are incredibly appealing to executive nomads, because they offer everything you need to thrive both personally and professionally, from modern infrastructure to high quality of life,” says Andrew Cummings, head of Residential Agency Middle East at Savills.

While these cities are well known for their tourist attractions and luxury hotels, there is much more to Dubai and Abu Dhabi: “We’ve seen a real focus on creating a lively business environment where there are plenty of opportunities to grow, build networks and make lifelong connections,” adds Cummings.

Positively for new Executive Nomad Index entrant – Cape Town, cities with beachside access continue to outperform in the top 10 led by Málaga (3^rd), Miami (4^th), Lisbon (5^th), Barcelona (6^th) and Palma (7^th).

“The more common digital nomad is symbolised by the young backpacker; however, executive nomads tend to be older and more likely travel with family in tow,” explains Kelcie Sellers, associate director, Savills World Research. “This places a greater emphasis on the quality of life aspects that these top international locations can provide, such as safety and access to healthcare or education facilities. For these individuals both physical networking and digital connectivity are important and must be accounted for.

“Executive nomads are more likely to rent, and put an emphasis on extra space and proximity to local amenities. Prime rents have risen, on average, by 5% in the last year across the 25 locations monitored in the Savills index, with some urban markets seeing increases of more than 15%.”

Says Basil Moraitis, Pam Golding Properties’ regional head in the Western Cape: “Cape Town’s ranking on Savills’ Executive Nomad Index instils confidence in the desirability of our world-renowned city as a sought-after destination. Most of the digital nomads earn significant hard currency which is then spent in the local economy and also adds to the diversity and popularity of Cape Town as a world-class general destination of choice.  Having a well-run city adds to the appeal as does the natural scenic beauty, and amenities all contribute to this trend.

“Cape Town’s charm lies in its diverse offerings. Nestled at the base of the iconic Table Mountain, the city boasts stunning landscapes, beautiful beaches, and an array of activities across the Peninsula and Winelands that cater to every taste. Whether you are looking to unwind on the pristine shores or embark on adventures through breathtaking trails, Cape Town offers a delightful mix for visitors.

“One of the significant advantages for digital nomads is the favourable exchange rate, which allows for comfortable living at a fraction of the cost compared to other major cities. The presence of Michelin-standard restaurants elevates the culinary experience, providing sumptuous dining without breaking the bank. With breathtaking views, Cape Town is an exceptional base for remote work and relaxation.”

Moraitis adds that digital nomads tend to rent properties as opposed to purchasing, and focus on short-term property rentals up to three months at a time, which means it doesn’t really impact on the long-term rental market.

Says Moraitis: “Particularly appealing to digital nomads are the rental options in the vibey Cape Town City Bowl area, known for its cosmopolitan atmosphere. The following apartment rentals are currently in high demand for short stays of three to six months:

• Studios and one-bedroom loft apartments ranging from R10 000 to R18 000 per month
• Two-bedroom apartments priced from R20 000 to R30 000 per month

“These options provide a comfortable and inspiring living space, allowing residents to immerse themselves in the local culture while maintaining productivity in their work endeavours.”

Posted by The Know - Pam Golding Properties