The Heart of Cape Town: Are Locals Being Priced Out of Historic Bo-Kaap by Rich Foreign Buyers?

A Silent Shift in Cape Town's Soul: Bo-Kaap's Battle for Belonging

As dawn breaks over Cape Town's majestic Table Mountain, the timeless call to prayer resonates through the narrow, cobbled streets of Bo-Kaap. From the minaret of Auwal Masjid, South Africa's oldest mosque, the adhan has echoed for centuries, a constant soundtrack to this vibrant, historically Muslim community.

Yet, beneath this familiar sound, a profound and troubling transformation is quietly taking hold. Across Bo-Kaap and much of Cape Town's inner city, escalating property values, surging investor interest, and the proliferation of short-term rentals are sparking fears that one of the city’s most historically significant neighbourhoods could slowly fade away, unable to sustain the very people who built its unique character.

In Cape Town’s historic Bo-Kaap, locals are increasingly priced out by rich foreign buyers, a trend that threatens the cultural heart of the Mother City.

The Erosion of a Living Culture: A Resident's Perspective

For Yasser Booley, a 50-year-old photographer and an eighth-generation Bo-Kaap resident, the changes have been subtle but impossible to overlook. "The biggest changes I have seen are the slow choking of my living culture through the accelerated sale of homes to high net worth individuals, the majority of whom have no connection to the place or the culture," he states.

Booley grew up in a tightly knit community where extended families often resided within a few blocks, their lives intertwined by shared mosques, schools, and a collective history shaped by culture, colonial rule, and apartheid. Today, that invaluable social fabric is fraying under the strain of the neighbourhood's burgeoning popularity with tourists and investors, reshaping everything from local businesses to how homes are utilized.

This shift isn't just about who lives there; it’s about how Bo-Kaap itself is perceived – evolving from a generational home to a lucrative investment opportunity.

Foreign Investment Fueling the Property Surge

Cape Town's prime property market has become an undeniable magnet for international demand. Data from the Seeff Property Group reveals that foreign buyers contributed approximately 2.8 billion rand ($168 million) – nearly a quarter of the 11.3 billion rand ($679 million) in property sales across the Atlantic Seaboard and City Bowl in the last year alone.

As affluent buyers flock to the city, the consequences ripple directly through communities like Bo-Kaap. Homes that once housed multiple generations of the same families are increasingly being sold to overseas investors or repurposed into short-term rental accommodations like Airbnb. This leaves younger residents struggling to afford to remain in the neighbourhood their ancestors called home for centuries.

"I have seen my generation leave the Bo-Kaap en masse because they can’t afford to live here anymore," Booley laments. "Where young people do happen to have the resources to buy in the area, there seems to be an invisible barrier [to entry]." This raises a poignant question: can the community that forged Bo-Kaap's unique identity still afford to call it home?

The Short-Term Rental Effect and Digital Nomad Influx

Cape Town's emergence as a global tourism hotspot has profoundly altered the economics of its inner-city housing market. In 2025 alone, the city welcomed approximately 3.3 million international visitors, according to Airports Company South Africa. Neighbourhoods clustered around the City Bowl, including Bo-Kaap, are central to this tourism economy, offering a rare blend of history, culture, and daily life.

However, these very qualities have made the area prime real estate for investors. Short-term rental platforms have accelerated this trend dramatically. AirDNA, a rental analytics firm, reports over 31,000 active short-term rental listings across Cape Town, with a high concentration around the central business district – 26,000 of which are Airbnb listings.

The financial incentives are significant. Short-term rentals in central Cape Town can generate more than 400,000 rand ($24,000) annually, far exceeding the 144,000 to 216,000 rand ($8,640 – $13,000) yearly income from a comparable long-term rental.

Adding another layer to the demand, Cape Town has also become a favoured destination for remote workers and digital nomads, who earn salaries in stronger foreign currencies while enjoying South Africa's lifestyle. In 2024, the government introduced a digital nomad visa to actively attract this international talent, further stimulating both tourism and investment.

Preserving Heritage: A Community's Urgent Plea

"It is, culturally speaking, a dire state of affairs when the hard-fought battles of our ancestors come to nought," Booley asserts. The displacement of long-standing residents in Bo-Kaap isn't just an economic issue; it's a profound cultural loss. The challenge for Cape Town now is to navigate its popularity as a global destination without sacrificing the very communities that give it its soul. Ensuring that the original inhabitants can afford to remain is crucial for preserving the authentic heritage and identity of this iconic South African treasure.