A growing band of new settlers are putting their faith in South Africa, says Mike Mulvihill

THE CAPE OF GOOD HOPE is fast becoming the Cape of High Expectations. In the 11 years since the end of apartheid South Africa has experienced big changes, none more so than in the property market, where average house prices have trebled since 1998 and are continuing to rise. Tourism is booming, too, with 447,300 British visitors in 2004 against 159,600 in 1994.

A growing number of tourists have been so entranced that they have decided to stay, especially in the Western Cape, where sales to foreigners account for 10 per cent of business - or about 15,000 properties a year - and holiday homes are now a firm feature of the market. After my visit last month it is easy to see why, as this is arguably the most beautiful and varied area in the country, with a host of properties to match ...

... There is more luxury at the Arabella Country Estate, just 90 minutes' drive from Cape Town and 15 minutes from the up market resort of Hermanus. Here lies Maxabella Luxury Homes, stylish contem- porary houses being developed by Mads and Charlotte Viuff, a Danish couple who have lived in South Africa for more than ten years. They have already sold nine of their designs, while two unsold properties are nearing completion and a further seven are on the way.

Maxabella offers the ultimate in bespoke, custom-made design, with finishes in mate- rials sourced from around the world. The attention to detail is remarkable and the houses ooze European style, with the Viuffs involved in every stage of the process, from buying the land to overseeing the building to installing the handmade kitchens. They will even furnish it for you, right down to the pictures on the wall, which you can be assured will not be from Ikea.

The Arabella Country Estate has one of the best golf courses in South Africa, but there is also a five-star hotel and spa, with canoeing, tennis, horse-riding, mountain biking and fishing all on site, making this a wonderful place for families as well as those looking for a quieter life. Maxabella’s four-bedroom homes start at £475,000, but a spectacular five-bedroom house with views over the Bot River lagoon is available at £900,000.

The Western Cape has so much to offer the visitor that it is hard to pack it all in. From shark-cage diving in Mossel Bay to wine-tasting in Stellenbosch, from whale-watching in Hermanus to relaxing on Pletten- berg Bay's beaches, from sampling oysters in Knysna to just taking in the stunning scenery

of the Garden Route, there is something to keep everyone amused in the Western Cape.

This being Africa, there’s also the chance to go on safari. Spotting the "big five" at the luxu- rious Shamwari Game Reserve just outside Port Elizabeth was an experience I will not forget.

Of course, South Africa is not without its problems. Crime levels are high, particularly in the bigger cities, and I was wary myself before I arrived. However, I felt safe in the Western Cape, which has nothing like the crime of Johannesburg.

The country is clearly still coming to terms with life after apartheid but there is a deter- mination to make things better, and a growing black middle class is starting to make its presence felt in the economy.

If progress continues, house prices, which some analysts predict will grow by a further 20 per cent this year, will go on rising and tourists will still flock to the Western Cape. After all, it has to be the only place in the world where you can choose between a safari or shark-cage dive in the morning, followed by a round of golf or a spot of wine-tasting in the afternoon, all rounded off with a cream tea or pint of best in your local pub while watching the African sun set.

Maxabella Luxury Homes, OHS International, 0870 240 3258 or visit www.ohsinternational.com