Top 5 Reasons Why Cape Town is Overrated (2025 Edition)

Everyone talks about Cape Town like it's the crown jewel of South Africa. And don’t get us wrong — it’s stunning. Table Mountain, the beaches, the wine farms, the lifestyle… it sounds like paradise, right?

But here’s the thing: just because it looks perfect, doesn’t mean it’s the best place to live.

We’re about to stir the pot. Because if you dig deeper, there are a few hard truths that locals whisper — and foreigners often miss entirely.

Here are 5 reasons Cape Town might actually be overrated as a place to live — especially in 2025.

1. The Cost of Living is Outrageous

Let’s start with the obvious: Cape Town is expensive.

Rent, groceries, petrol, restaurants — it all adds up fast. Property prices in desirable areas like Camps Bay or Constantia can easily reach 10 to 30 million rands.

According to Lightstone (2024), the average price of a freestanding house in Cape Town is now over 2.1 million rands — far higher than Joburg, Pretoria, or Durban.

If you’re a digital nomad earning dollars, it’s fine. But if you're a local or on a fixed salary? It can crush you.

2. Racial and Economic Segregation is Still Very Real

While Cape Town might be postcard-perfect, the inequality is hard to ignore. Wealthy suburbs border impoverished townships — and social integration is limited.

According to Stats SA, Cape Town remains one of the most racially segregated metros in the country.

Many black South Africans say they feel excluded or unwelcome in some spaces. That’s not just perception — it’s backed by years of spatial planning and history.

3. Job Opportunities are Limited

Cape Town is a tech and tourism hub — but it’s not the best place for traditional employment.

Job seekers in fields like finance, government, engineering, or logistics often fare better in Gauteng, where most head offices are located.

Many young professionals say they want to move to Cape Town… but can’t afford to without remote work.

4. The Water Crisis Isn’t Over

Remember Day Zero in 2018? Cape Town nearly became the first city in the world to run out of water.

Although water restrictions have eased, the infrastructure remains fragile. Climate change is making rainfall more unpredictable. And rapid urban expansion hasn’t helped.

Western Cape officials continue to warn that “responsible water use must be the norm, not the exception.”

5. The Local Attitude Can Be… Cold

Here’s the part no one talks about:

Some South Africans — especially from Gauteng or Durban — say Cape Town residents are less friendly or less welcoming.

It’s not true for everyone, of course. But enough people have mentioned it that it’s become a bit of a stereotype.

If you’re used to warm hospitality and big personalities, the Cape might feel… a bit distant.

So Where Should You Live Instead?

Cities like Johannesburg, Pretoria, Durban, and even smaller towns like George or Ballito offer better value, faster growth, and more diversity.

Check out our guide: Top 5 Places to Live in South Africa (2025)

Final Thoughts

Is Cape Town beautiful? Yes.

Is it the best place to live? That depends on what you value.

Don’t fall for the Instagram version. Look at the facts. Ask locals. Visit more than just the tourist spots.

And if you’re thinking about buying property in South Africa — talk to us first.

We’re The Property Guys.
We help locals and foreigners buy smart — with free advice, pre-qualification, and access to First Home Finance (FLISP) subsidies.

Visit www.thepropertyguys.org or click the link in our bio to learn more.

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