Proven Partners, specialists in luxury real estate marketing, have released a “league table” ranking 20 popular destinations based on their affordability for UK second-home investors. This comes at a time when UK regions are witnessing significant hikes in property taxes for second homes.
The rankings considered factors like property prices, taxes, fine-dining costs, premium car hire rates, flight costs from the UK, and potential Airbnb revenue.
The study, underpinned by data from 3,600 luxury property listings on JamesEdition and other sources, assigned each country an “affordability score” out of 10.
South Africa stands at an impressive 4th rank with an 8.7 affordability score, highlighting its cost-effective appeal in the luxury second home market.
The average price for a luxury waterfront 3-bed properties is R12.5M (£551,501), offering remarkable value in the luxury segment.
South Africa’s allure is enhanced by its sunny weather, relatively low living costs, with premium car hire at only R1,402 (£71) per day and affordable fine dining experiences. Although, the flight from the UK will cost an eye-watering R34,609 (£1,530).
Colin Hannan, Co-CEO at Proven Partners, commented, “Although the flights can be very costly, South Africa presents an unbeatable combination of luxury and affordability, making it a magnet for UK investors seeking value in the current economic climate.”
This study gains relevance against the backdrop of recent announcements in the UK. Regions like Pembrokeshire are imposing a 100% council tax premium on second homes, and Scotland is set to double council tax on such properties.
These measures, aimed at addressing local housing shortages, are significantly increasing the financial burden on second-home owners in the UK.
Ronan Hannan, Co-CEO at Proven Partners, noted: “The resurgence of the luxury real estate market post-pandemic has seen a spike in interest towards destinations like South Africa, where investors can enjoy both luxury and affordability.”
The full table of rankings, with South Africa’s notable position, can be found below.
| Countries | Rank | Affordability Score (10 = Most Affordable) | Avg. Price of Luxury Waterfront 3-Bed Properties | Price/ Sqft | Airbnb Avg. Nightly Revenue (During Jun-Aug) | Avg. Flight Ticket Price From UK (Aug) | Avg. Price of Tasting Menu At Top-Rated Fine Dining Restaurant | Avg. Price For Premium Car Hire Per Day | Property Tax Score (5 = Very Low Tax) |
| Ireland | 1 | 10 | R 10.3M | R 5,745 | R 7,238 | R 1,538 | R 3,936 | R 3,008 | 4 |
| Cyprus | 2 | 9.3 | R 11.5M | R 6,515 | R 8,709 | R 6,062 | R 1,810 | R 2,850 | 5 |
| Mauritius | 3 | 8.9 | R 12.2M | R 7,193 | R 6,334 | R 27,913 | R 1,425 | R 2,307 | 5 |
| South Africa | 4 | 8.7 | R 12.5M | R 5,519 | R 5,157 | R 34,609 | R 2,352 | R 1,402 | 4 |
| Croatia | 4 | 8.7 | R 12.6M | R 8,596 | R 12,124 | R 3,981 | R 3,008 | R 2,036 | 4 |
| Greece | 5 | 8.6 | R 11.0M | R 6,786 | R 15,042 | R 5,678 | R 3,936 | R 4,999 | 3 |
| Portugal | 6 | 8.5 | R 11.3M | R 6,876 | R 8,618 | R 3,597 | R 4,026 | R 2,488 | 3 |
| Turkey | 6 | 8.5 | R 11.0M | R 6,175 | R 8,663 | R 9,206 | R 2,330 | R 3,778 | 3 |
| Malta | 7 | 8.4 | R 12.5M | R 7,985 | R 6,899 | R 2,873 | R 2,330 | R 1,629 | 2 |
| UAE | 7 | 8.4 | R 13.9M | R 7,781 | R 17,395 | R 9,681 | R 4,976 | R 2,805 | 5 |
| Canada | 8 | 8.2 | R 11.8M | R 7,035 | R 8,799 | R 19,069 | R 9,342 | R 1,221 | 3 |
| Montenegro | 9 | 8.1 | R 14.4M | R 10,224 | R 8,437 | R 4,094 | R 1,402 | R 4,139 | 4 |
| Spain | 9 | 8.1 | R 11.8M | R 8,483 | R 7,668 | R 3,031 | R 4,049 | R 2,760 | 3 |
| Sweden | 9 | 8.1 | R 14.2M | R 6,605 | R 6,175 | R 3,235 | R 6,062 | R 1,289 | 3 |
| Italy | 10 | 7.8 | R 12.1M | R 7,057 | R 10,631 | R 4,388 | R 4,728 | R 2,737 | 2 |
| New Zealand | 11 | 7.4 | R 14.1M | R 9,297 | R 8,890 | R 26,511 | R 2,352 | R 2,058 | 3 |
| Netherlands | 12 | 6.7 | R 21.3M | R 11,830 | R 7,284 | R 3,008 | R 4,388 | R 1,764 | 4 |
| France | 13 | 6.6 | R 14.7M | R 12,599 | R 8,641 | R 1,923 | R 5,565 | R 4,388 | 1 |
| Switzerland | 14 | 6.5 | R 29.0M | R 18,481 | R 11,084 | R 1,877 | R 5,406 | R 1,176 | 2 |
| Austria | 15 | 6.4 | R 20.3M | R 17,644 | R 13,866 | R 3,619 | R 4,275 | R 2,737 | 3 |
