South Africa has seen an increase in demand for properties from international buyers, with many eyeing houses in the Western Cape for retirement or investment purposes.
Real estate companies Pam Golding Properties and Lew Geffen Sotheby’s say there has been an upward trend since 2023, with luxury homes popular among foreign buyers.
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty in South Africa, said factors including lifestyle, comparative affordability, diverse property options and investment potential contributed to foreign buyers being attracted to the local market.
“Favourable exchange rates make South African property even more accessible and we’re seeing a growing number of these investors diversifying their property portfolios to include South African real estate. Lifestyle is also a key factor for which South Africa is renowned, and scenic locations such as Cape Town and the Garden Route attract keen buyer interest.”
Geffen said while the Western Cape was most popular, with buyers looking to retire or secure holiday homes, locations chosen depended on the needs of the individuals.
“Johannesburg is becoming increasingly popular with buyers from other African countries, especially those looking to place their children in good schools.”
Many estate agents in the Western Cape and KwaZulu-Natal, especially in areas such as the Atlantic seaboard and Umhlanga, see a significant rise in viewing requests from high-end international buyers considering relocating to South Africa after spending holidays here.
Lew Geffen Sotheby’s said a R72m property was recently bought in Constantia, Cape Town, by a young Austrian family after one visit to South Africa. They had brokered similar transactions over the past two years, including the sale of a R28m Cape Dutch home to a Belgian investor.
Pam Golding Properties found buyers from Nigeria and Zimbabwe topped the list of Africans snapping up property.
CEO Andrew Golding said the motivation included foreigners looking to South Africa for its convenience, relaxed lifestyle, weather and affordability, all of which were reinforced by the ability to work remotely.
“The certainty and stability that had made Europe appealing is now being threatened by the war in Ukraine — which is showing no signs of abating — with much depending on whether America continues to support Ukraine or not. The ongoing turmoil in the Middle East is also contributing to making South Africa more appealing,” he said.
Popular areas for foreign buyers include Cape Town, the Atlantic seaboard, the Boland and Overberg regions
Popular areas for foreign buyers included Cape Town, the Atlantic seaboard, the Boland and Overberg regions, including Franschhoek, Stellenbosch, Paarl and Hermanus.
Keri Culver, senior immigration consultant at Xpatweb, said the country was increasingly popular among people who wanted to live under the retired person’s visa, one of the most accessible of its nature globally. Foreign nationals most interested in retiring in South Africa were Europeans, British citizens, Americans and Canadians.
Home affairs said that since 2020 it had received more than 5,000 applications from foreigners from more than 100 countries who were interested in retiring here.
Arnold Maritz, co-principal for Lew Geffen Sotheby’s International Realty in Cape Town, dismissed concerns that international buyers were driving up property prices.
“The volume of sales to foreigners is far too small to have a significant impact on property prices or overall demand. We also find that foreign buyers do proper due diligence before buying, and will not easily overpay for a property, even though their currency is so much stronger than the rand,” he said.
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