Surge In Foreign Investment In South Africa

The South African residential property market is witnessing a significant surge in foreign investment, particularly from buyers without South African residency, according to a recent analysis by Lightstone.

This trend marks a notable shift, reflecting growing international confidence in the country’s real estate offerings.

Between 2019 and 2024, the proportion of foreign buyers without residency jumped from 2.9% to 3.7%. While the figures for those with residency saw a modest decrease from 3.8% to 3.3%, the overall landscape indicates a thriving interest from international investors especially for high-end properties.

In 2024, non-resident buyers made a substantial impact on the market, purchasing properties at an average price of just over R2.7 million. This figure is strikingly more than double the R1.2 million average paid by local buyers. It highlights the allure of South Africa’s property market amid advantageous global economic conditions.

The Western Cape has emerged as a prime destination for these foreign buyers, dominating the market with over 40% of all property transactions exceeding R10 million in 2024.

High-demand suburbs such as Scarborough, Chapmans Peak, Bakoven, and De Waterkant have become symbols of the luxury market, with all of the 22 most sought-after suburbs for foreign buyers located within this picturesque province.
Several factors contribute to this surge in foreign investment most notably, the current favourable exchange rates, South Africa’s inviting climate, and the relative affordability of luxury properties compared to other global markets. These elements combine to paint a picture of an appealing investment landscape, where luxury living meets considerable market value.

Industry experts anticipate that this trend will not only continue but could also accelerate, thereby fortifying the country’s property market and aiding broader economic growth.