Business
Foreign buyers are changing South Africa’s luxury property market
When South Africa suddenly feels like a bargain
South Africa has always drawn international interest, but the past few years have shifted that curiosity into something more concrete. Overseas buyers are no longer just browsing coastal listings for fun. They are signing offers, transferring funds, and quietly reshaping the top end of the property market.
Compared with lifestyle destinations in Europe, Australia, or parts of the United States, South African property still looks like a steal. Bigger homes, prime locations, and ocean views often come at a fraction of the price foreigners would pay back home. Add favourable exchange rates into the mix, and the appeal becomes obvious.
Industry leaders have been pointing this out for some time. When international buyers compare prices abroad, South Africa consistently offers better quality and location for less money. That value gap has become impossible to ignore.
The numbers tell a bigger story at the top
On paper, foreign buyers still make up a relatively small share of total property transactions. In 2024, non-resident buyers accounted for about 3.7 percent of sales, up from roughly 2.9 percent in 2019. Those figures seem modest until you zoom in on luxury homes.
In properties priced above R10 million, foreign buyers now account for close to 40 percent of purchases. This is where the real shift is happening, and the Western Cape sits firmly at the centre of it.
Cape Town continues to outperform almost every other region. Its combination of beaches, restaurants, creative culture, and natural scenery gives it a global appeal that few cities can match. For many overseas buyers, it offers the lifestyle they want without the price shock they would face elsewhere.
Who is buying and why now
Most international buyers come from Europe, with Germany and the Netherlands featuring prominently. Many are retirees looking to stretch their savings, remote workers earning offshore salaries, or investors chasing rental returns in high-demand neighbourhoods.
Remote work has played a major role in accelerating this trend. Living in Cape Town while earning in euros, pounds, or dollars is now not only possible but also increasingly common. High-speed internet, established infrastructure, and strong short-term rental demand make the move feel practical rather than risky.
For investors, the maths often works. Rental demand in coastal and lifestyle areas remains strong, especially in neighbourhoods close to beaches, restaurants, and transport routes. For full-time relocators, the draw is simpler. They get space, scenery, and a slower pace of life without sacrificing connectivity.
The upside locals cannot ignore
There is a positive side to this surge, even if it is sometimes overlooked. Foreign buyers bring capital into the economy. Their spending supports estate agencies, legal firms, banks, construction teams, cleaners, security services, and short-let managers.
In high-end areas, international demand helps stabilise the luxury market during uncertain economic periods. When local buyers pull back, foreign interest can prevent prices from collapsing entirely. That stability ripples outward, supporting jobs and related industries.
A single luxury sale does not stop at the transfer documents. It feeds an ecosystem of services that rely on property transactions to survive.
The pressure locals feel every day
But this is also where frustration sets in. Overseas buyers are often playing with far stronger currencies. What feels like good value to them can be completely unattainable for locals earning in rands.
In neighbourhoods like Sea Point, Camps Bay, and parts of the Atlantic Seaboard, competition from foreign buyers pushes prices higher. Young professionals and first-time buyers find themselves edged out of areas they grew up in or hoped to settle in.
Over time, communities begin to change. Homes become short-term rentals or second residences rather than permanent family spaces. Streets feel quieter in winter. Local buyers scroll property listings endlessly, watching prices creep further away from their savings.
This is the tension sitting at the heart of South Africa’s property story. Foreign investment keeps the market alive, but affordability for locals continues to shrink.
What this means going forward
The luxury market is unlikely to cool any time soon. Exchange rates, lifestyle appeal, and remote work trends are still working in South Africa’s favour. For sellers, this creates an opportunity. For buyers earning locally, it raises difficult questions.
Without stronger wage growth, smarter housing policies, and more well-located affordable developments, homeownership will keep slipping further out of reach for many South Africans. The country risks becoming a place where luxury thrives for outsiders while locals are pushed further to the margins.
South Africa’s global appeal is not the problem. The challenge is making sure that the benefits of that appeal do not come at the cost of local access to homes, communities, and long-term stability.
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Source: IOL
Featured Image: Daily Investor
