International buyers fuel South Africa’s property momentum

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“But we’re also seeing growing interest in high-demand regions in KwaZulu-Natal and Gauteng,” says Bradd Bendall, BetterBond’s national head of Sales.

Tourism rebound boosts foreign investment

South Africa’s tourism sector is on track for a full recovery, with 1.3 million international travellers visiting the country so far this year – 83,000 more than in 2024. In July alone, international arrivals were up 20% year-on-year, according to the BetterBond Property Brief.

“Tourism and property investment are closely linked,” says Bendall. “As international visitor numbers rise, so does interest in property — not only for guest accommodation, but also as long-term investments. Many buyers arrive as tourists and leave as prospective homeowners.”

Although foreign buyers represent less than 5% of all home transactions, their investment value is disproportionately high. Lightstone reports that the average purchase price for foreign buyers without residency is R2.7m – significantly above the R1.6m 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.

Guiding non-resident buyers through the process

“BetterBond works with non-resident buyers, taking them through the buying process from applying for a bond to concluding the sale,” says Powell. Bendall adds that a bond originator negotiates with banks on the buyer’s behalf and ensures that all required paperwork, including international bank-account statements, are in order.

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 remains the 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 aligns with broader wealth-migration trends. 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 $100m) reside in the Winelands, while 1,800 millionaires live along the Whale Coast and 3,800 in Stellenbosch and Paarl.

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Cape Town itself continues to attract significant international expenditure, with overseas buyers investing more than R1bn 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 R2m for apartments to upwards of R70m for freestanding homes in exclusive estates and boutique farms.

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 $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 attracts 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 R3m to over R20m for luxury homes.

KZN: a coastal favourite for 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.

Foreign buyers drive high-end sales

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 R10m, 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 concludes. “South African real estate offers exceptional lifestyle benefits and relative affordability compared to other global property hotspots.”