Foreigners are buying 39% of South African homes above R20 million

South Africa’s comparatively affordable luxury property prices, lifestyle appeal, and favourable exchange rate are drawing foreigners, who now account for 39% of the country’s home sales above R20 million.

Foreign buyers still make up a small percentage of South Africa’s overall housing market. However, new Lightstone data shows that they are increasingly buying luxury properties.

Just Property CEO Paul Stevens said this research mirrors what his offices are seeing on the ground level, which is that international buyers are no longer viewing South African luxury homes only as investments.

Instead, they now see these properties as places to live, work remotely, holiday, and return to year after year. “This is not just a Cape Town story, or a luxury estate story – it’s a value story,” Stevens said.

“Global buyers are comparing South Africa with other prime destinations and realising they can get space, setting, lifestyle, and long-term benefits here at prices that are hard to match elsewhere.”

According to Lightstone, foreign ownership accounts for just 6% of South Africa’s total residential housing market. While this number may seem small, the picture quickly changes in the luxury categories.

Foreigners account for 15% of transactions between R4 million and R10 million, 26% between R10 million and R20 million, and 39% of sales above R20 million.

Foreign buying interest is currently strongest in the Western Cape at 7.8%. This is followed by Gauteng and then Limpopo.

Just Property’s internal data show that foreign buyers’ priorities are typically for secure, low-maintenance apartments close to restaurants, galleries, and beaches.

They also have a preference for sea-facing homes, character properties in walkable pockets, and secure units in lifestyle estates.

According to Stevens, the way that foreign buyers search for properties starts long before they arrive in South Africa.

“They browse online listings, watch video walk-throughs, research suburbs, and speak to local agents about lifestyle, security, rental appeal, and long-term value,” he said.

By the time they get to South Africa in person, they have often narrowed the search down to a few specific options. The rand makes South African properties especially appealing, Stevens said.

“The Africanvestor’s 2026 Cape Town housing price guide cites a median Cape Town property price of about R3.4 million, or roughly €179,200, with a R7.2 million selling price equating to around €380,000.”

In comparison, the 2026 Global Property Guide revealed that apartment prices in European cities can run into several thousand euros per square metre.

This makes South African luxury properties appear very favourably priced by international standards, Stevens pointed out.

What foreign buyers are looking for in luxury homes

Based on his experience, Stevens said foreign buyers looking for homes in South Africa are becoming increasingly practical.

“The questions we’re being asked are less about whether South Africa is beautiful – that part is already clear – and more about how the property will work for them from day to day,” he said.

Buyers want to know whether the area is secure and well managed, whether the home can be rented out when they are not here, and how easy it will be to maintain the property from overseas.

They are also considering whether there is reliable fibre and backup power, how close they are to restaurants, beaches, airports, and medical care, and how easily they can later sell or move money overseas.

Stevens said three buyer profiles stand out right now. The first is the seasonal buyer who wants to spend part of the European winter in South Africa.

The second is the remote-work buyer who needs fibre, security, space, and easy airport access. Digital nomads fit into this category.

The final type is the investment buyer who wants a lock-and-go property with strong rental appeal and long-term growth potential.

For South African sellers hoping to attract international interest, Stevens said foreign buyers respond well to homes they can immediately picture themselves using.

It is much easier to attract foreign buyers if the listing uses professional photos and makes the view, the neighbourhood, the convenience, the security, and the running costs all clear.

Why foreigners can buy luxury homes more easily than South Africans

Stevens said foreign luxury buyers are also less exposed to the local pressures many South African buyers face. This makes it easier for them to buy homes in South Africa, while the goal remains out of reach for many locals.

“With the South African Reserve Bank’s repo rate at 7.00% and prime lending at 10.50%, affordability is a major factor for domestic buyers,” he said.

However, in the foreign luxury segment, Stevens said purchases are often cash-driven or supported by offshore wealth.

Something else that attracts international buyers is that South Africa’s buying process is easier to understand than many expect.

“Many high-end foreign buyers are in a strong cash position, so they don’t need to worry about local interest rates,” he said.

“And according to BetterBond, South African banks often offer non-resident buyers home loans of up to 50% of the purchase price if they meet the lending criteria.”

With the favourable exchange rate, Stevens said South Africa is a very attractive option for buyers looking for a premium lifestyle property with long-term value.

“South Africa gives international buyers a package that’s becoming harder to find elsewhere – space, lifestyle, natural beauty and value in one place,” he said.

For foreign buyers, Stevens added that this is an opportunity to own a home they can truly enjoy, not just an asset on paper.

“For sellers, if your property is well presented, well priced and easy for an overseas buyer to understand, it has a good chance of standing out in the global market,” he said.