World Economy
Mar 23, 2026
Cape Town's Bo-Kaap Neighborhood Under Siege from Wealthy Foreign Buyers
The historic Bo-Kaap neighborhood in Cape Town, South Africa, is facing a crisis as wealthy foreign…
Cape Town's iconic Bo-Kaap neighborhood, known for its brightly colored houses and rich cultural heritage, is under threat from rising property prices and foreign investment. The area, situated at the foot of Table Mountain, has long been a hub for the city's Muslim community, with its historic mosque, Auwal Masjid, dating back to 1794.However, the neighborhood's growing popularity with tourists and investors has led to a surge in property prices, making it increasingly difficult for long-time residents to afford to stay. Foreign buyers have accounted for around $168m in property sales across Cape Town's prime property market in the past year, according to data from the Seeff Property Group.Residents say the consequences are unfolding inside the neighborhood itself, with homes that once housed generations of the same families being sold to foreign investors or converted into short-term rentals like Airbnb. Younger residents are finding it hard to remain in the neighborhood, with many being priced out of the market.The Bo-Kaap Civic and Ratepayers Association has expressed concerns about the impact of gentrification on the community, with chairperson Sheikh Dawood Terblanche stating that residents are being displaced due to rising property prices and municipal rates.The City of Cape Town has acknowledged the challenges facing neighborhoods like Bo-Kaap, citing rapid population growth and economic conditions as contributing factors. However, residents say more needs to be done to protect the community's cultural heritage and ensure that long-time residents are not priced out of their ancestral homes.
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