South African property investors are coming home

As interest rates ease and affordability improves, more South Africans are re-evaluating offshore investing and turning back to local property for its accessibility, rental income, capital growth and long-term security.

Just Property explained that, for years, offshore investing was often framed as the smart move – diversify, earn in harder currency and spread risk beyond South Africa’s borders.

While many South Africans still take this approach, which can make sense under the right circumstances, more investors are reappraising what “security” looks like.

Just Property said local property is increasingly part of the answer. “The shift is not just emotional. It is visible in the numbers,” the company said.

According to data from BetterBond, home loan applications increased 16% year-on-year, and 23.5% from the low point in the third quarter of 2023.

With the prime lending rate now 10.25% after the latest cut, and 150 basis points lower than it was at the start of September 2024, affordability has started to loosen in a way that the market can feel.

“South Africa’s housing market has not been immune to pressure, but it has remained remarkably functional through a difficult rate cycle,” Just Property said.

Data from Statistics South Africa’s Residential Property Price Index revealed that national property price inflation stood at 6.6% year-on-year as of June 2025.

It also reported notable regional differences, such as the Western Cape at 10.2% compared to Gauteng at 3.1%.

“At the same time, transaction activity and buyer appetite are responding to easing conditions,” Just Property said. “One of the clearest signals is that access to homeownership is improving again.”

BetterBond also reported that average deposits required for first-time buyers are down 20% year on year. This matters because deposits can be the biggest barrier between “ready to buy” and “able to buy”.

Benefits of buying locally

“Property is an investment you live with, even when you do not live in it,” Just Property said. “That is why proximity counts.”

“Owning locally makes it easier to check on an asset, stay on top of maintenance, and appoint reputable professionals, from managing agents to attorneys.”

Buying property locally also has the added benefit of reducing decision fatigue and buyer’s remorse, Just Property explained.

Investors can assess neighbourhood trends with greater confidence, understand municipal realities, compare local rental demand, and leverage relationships with experienced agents.

“In a world where uncertainty is global, many people are placing a higher value on clarity and control,” the company added.

The benefits of buying property locally also extend beyond financial gains, since it gives buyers the opportunity to invest in their legacy.

“Buying a home or investment unit in South Africa is a way to secure the future for one’s family, create generational stability and build wealth in a tangible, meaningful way,” it said.

“Families want to leave behind assets that anchor future generations. A property rooted in the same country where memories are made and milestones are celebrated becomes part of a family’s story.”

Just Property noted that local real estate provides the opportunity to grow wealth while strengthening the foundation on which that story is built.

“The past few years have reshaped how people think about home. Proximity to loved ones, community connections, lifestyle choices and quality of life matter more than ever. These priorities are influencing investment decisions too,” it said.

The rental market also remains an important pillar for investors looking for monthly cash flow, Just Property explained.

The PayProp Rental Index reported an average rent of R9,286 in the third quarter of 2025, with a 4.9% year-on-year growth.

“For investors, this reinforces a key point – local property can provide a blend of potential capital growth and rental income, particularly when the asset is well located, appropriately priced and professionally managed,” Just Property said.

While offshore investments still have their place, Just Property said local property offers something more rooted and enduring.

“If you are considering buying locally, focus on the basics that drive outcomes over time: location quality, affordability, rental demand, total cost of ownership and the strength of the professional team supporting the transaction,” the company said.

“The goal is not to chase certainty in faraway places. For many investors, it is to build it steadily, right here.”