In addition to reasonably priced housing, Cape Town offers gorgeous weather, an active culture, an easy-going vibe and sprawling vineyards that surround the city.

"Current market conditions are poor due to the weak rand, high inflation and high interest rates, but this means that bargain hunting is possible and the city looks cheap on an international scale," said Barnes.

Two-bedroom apartments range in price from $110,000 to $370,000.

Cities where English is the first or second language also tend to be desirable among wealthy investors. English -- being the global language for business -- tends to enable more commercial activity, so Cape Town is well placed.

It also doesn't hurt that the city is on the coast. A favorite pastime among locals is called "Sundowners," which involves watching the sun set over the ocean with a drink in hand.