South Africa

Wealthy foreigners flocking to South Africa

South Africa is becoming an increasingly attractive destination for wealthy international buyers looking for holiday homes, retirement properties, and investment opportunities.

Xpatweb explained that Austrian buyers recently drew attention when they purchased a R72 million holiday home in Silverhurst Estate, Constantia, after just one visit.

Similarly, a British retiree from the London Home Counties chose South Africa as a permanent home to enjoy golf year-round.

Arnold Maritz, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay, highlighted a similar case.

“A French couple from Paris, with six kids attending a prestigious private school, is buying a Cape Town home without seeing it in person and offering more than the asking price,” Maritz said.

These examples reflect a broader trend, particularly noticeable in the Western Cape and KwaZulu-Natal, where the Atlantic Seaboard and Umhlanga are experiencing high demand from international buyers.

Many enquiries stem from referrals by friends and family, first-time visits, or research on desirable retirement destinations. Returning expatriates and professionals with flexible, remote income streams also show strong interest.

While some international buyers see South African property as a financial investment, most seek permanent or holiday homes.

According to Keri Culver, Senior Immigration Consultant at Xpatweb, the country is becoming increasingly popular among retirees due to its accessible Retired Person’s Visa.

“Among foreign nationals most interested in retiring in South Africa are Europeans, British citizens, Americans, and Canadians,” Culver explained.

One of the main attractions of the Retired Person’s Visa is its affordability compared to other global retirement destinations.

The required income threshold is easily met by those earning in US Dollars, British Pounds, or Euros, thanks to South Africa’s favourable exchange rate and lower cost of living.

Additionally, the visa has no age restrictions, making it an appealing option for retirees.

The Department of Home Affairs (DHA) grants the Retired Person’s Visa for up to four years, allowing unrestricted entry and exit, along with eligibility for permanent residency.

Over 5,000 applications from more than 100 countries have been submitted in the last four years, with the top applicants coming from the UK, China, Germany, and the USA.

Val de Vie

Dr Andrew Golding, Chief Executive of the Pam Golding Property Group, noted an increase in foreign interest since 2023, with buyers from the UK, Germany, USA, Switzerland, Austria, UAE, France, Belgium, Nigeria, and other African countries investing in South Africa.

Popular areas among international buyers include:

  • Cape Town and the Western Cape: Constantia, Franschhoek, Stellenbosch, Hermanus, and the Atlantic Seaboard.
  • Garden Route: Plettenberg Bay, Knysna, and George.
  • KwaZulu-Natal: Umhlanga, Ballito, and Zimbali.
  • Gauteng: Fourways, Rosebank, and Sandton.

Maritz added that Lew Geffen Sotheby’s is seeing notable interest from UK and European high-net-worth and ultra-high-net-worth buyers, particularly in the R20 million-plus price range.

He also noted growing interest from US buyers and even far-flung locations like Bermuda and the Cayman Islands.

Culver attributes this demand to South Africa’s climate, high-standard private healthcare, leisure facilities, and scenic beauty, ranging from mountains and beaches to vineyards and wildlife reserves.

The country is also home to top-tier golf courses and luxury estates such as Val de Vie in Paarl, where nearly 50% of residents are foreign nationals. Some properties in this estate have been listed between R38 million and R42 million.

South African homes also offer significant value for money compared to properties in Europe.

“Properties in South Africa are generally 20% to 30% bigger than in Europe, and the average cost of a 150-square-metre three-bedroom house in major cities ranges between R1.9 million and R2.4 million (approximately USD 112,000 or EUR 110,000),” Culver explained.

While foreign buyers still make up a small portion of the overall market, their impact is growing. According to Propstats, which tracks high-end property sales in Cape Town, over 300 sales to foreign buyers were recorded in 2024.

This accounts for around 10% of total sales volume and 16% of total turnover. Maritz estimates that, on a national level, foreign purchases likely make up less than 1% of total property transactions.

Despite this, South Africa’s property market remains attractive to international buyers seeking a combination of luxury, affordability, and lifestyle, whether for retirement, holiday living, or investment.

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