Billions flow into South Africa’s property market as international buyers snap up homes

Billions are being invested in South Africa’s property market, with international buyers snapping up homes across the country. 

According to Bradd Bendall, BetterBond’s national head of sales, the Western Cape remains the preferred destination for many overseas buyers, accounting for over 40% of all property transactions above R10 million.

“But we’re also seeing growing interest in high-demand regions in KwaZulu-Natal and Gauteng,” he adds.

These buyers are particularly those from Germany, the Netherlands and the United Kingdom.

Tourism impact on SA property 

“Tourism and property investment are closely linked,” says Bendall. “When international visitor numbers increase, so does interest in property not just for guest accommodation, but as long-term investments. Often, buyers arrive as tourists and leave as prospective homeowners.” 

Although foreign buyers represent less than 5% of all home transactions, their investment value is said to be disproportionately high. 

Lightstone reports that the average purchase price for foreign buyers without residency is R2.7 million-significantly above the R1.6 million typically spent by local buyers. Those who finance purchases tend to take bonds of up to 50%, explains Ashley Powell, a home loan specialist for BetterBond Private Clients.  

The bond originator says non-residents are taxed only on income earned from local property, such as rental returns or capital gains when the property is sold. Any foreign pension income remains fully exempt from South African tax, notes Bendall.

“There is no restriction on the type or amount of property foreign buyers can invest in. Also, they are subject to the same fees and costs, such as transfer fees, as local buyers.” 

He adds that foreigners who want to live in their properties in South Africa for extended periods need to apply for the relevant visas to stay in the country.

“Foreign investment is an important driver of the local property market, so it’s important that non-residents and high-net-worth buyers feel comfortable and confident investing in local property.”

Western Cape: a top choice

Over the past two years (2023 and 2024), the 22 suburbs with the most foreign buyers have all been in the Western Cape.

Scarborough, Chapman’s Peak and Bakoven in Cape Town rank among the most sought-after areas. Many buyers also favour the Atlantic Seaboard, City Bowl, Stellenbosch and Somerset West in the Winelands, notes Powell.

Pearl Valley Golf Estate and Spa in Paarl remains a premium option for those seeking luxury and security.  

This demand is said to align with broader wealth migration trends, as The Africa Wealth Report 2025 names the Whale Coast and Cape Winelands as Africa’s third-and fourth-fastest-growing millionaire hotspots.

The Whale Coast, including Hermanus, has seen a 50% increase in millionaires in the past decade, while the Cape Winelands has grown by 42%. The report notes that 18 centi-millionaires (worth more than US$100 million) reside in the Winelands, while 1 800 millionaires live along the Whale Coast and 3 800 in Stellenbosch and Paarl.

Cape Town is attracting significant international exposure 

Cape Town itself continues to attract significant international expenditure, with overseas buyers investing more than R1 billion in the first five months of 2025 alone.

“This reflects both the strong demand and limited supply of premium properties in the city,” says Powell. Foreign spend ranges from around R2 million for apartments to upwards of R70 million for freestanding homes in exclusive estates and boutique farms.

Cape Town is Africa’s fifth-fastest-growing millionaire hotspot 

The Africa Wealth Report names Cape Town as Africa’s fifth-fastest-growing millionaire hotspot, home to 8 500 millionaires. It is also the continent leader in centi-millionaires, with 35 super wealthy individuals calling it home.

Furthermore, Cape Town is also the most expensive prime real estate market in Africa, at USD 5,800 per m², and is on track to overtake Johannesburg in total wealth by 2030. Both Cape Town and the Cape Winelands now host three billionaires each. 

Gauteng is attracting the highest buyer volumes

As South Africa’s economic hub and gateway for global trade, Gauteng attracts the highest number of foreign buyers by volume-many from other African countries. “These investors typically look for properties close to commercial and diplomatic nodes,” says Bendall. 

Popular suburbs include Sandton, Rosebank and Waterkloof in Pretoria, with prices ranging from R3 million to over R20 million for luxury homes.  

KZN appeals to European buyers

KwaZulu-Natal continues to appeal to British and European buyers seeking secure coastal investment properties, particularly along the North Coast.

“We’re seeing strong international interest in areas like Ballito and Zimbali, where lifestyle estates and secure coastal living appeal to both remote professionals and retirees,” Bendall explains. 

High-end sales driven by foreign buyers 

According to the Global Property Guide, foreign homebuyers represent only 3.7% of all home purchases in South Africa, but they account for 40% of all properties sold above R10 million, as reported by Lightstone.

Their share has also increased from 2.9% in 2019, signalling growing interest in high-end and lifestyle-driven investments.  

Foreign investment, along with a recovering tourism sector and stable exchange rate, is helping sustain momentum in South Africa’s property market heading into 2026. “International buyers see value in our market,” Bendall says.

“South African real estate offers exceptional lifestyle benefits and relative affordability compared to other global property hotspots.”

According to Lifestyle Property Group, a residential property specialist company, for Gauteng, next year does not promise a boom year, but rather a turn in the cycle: modest growth, improved volumes and selective outperformance by well-located properties and value segments.

Independent Media Property