Premium house market appeals to foreign buyers

Not one-size-fits-all: needs, values and locations differ across SA

Six percent of the approximately 2.39 million residential transactions recorded in South Africa over the last ten years were bought by a person born outside the country.

The transactions reviewed by Lightstone were limited to individuals and excluded those involving companies or trusts. Foreign buyers refers to South African citizens born outside the country, as well as buyers identified as foreign by other indicators (see full methodology at end of story).

While foreign buyers made up a relatively small amount of the period’s transactions, they accounted for 15% of transactions on properties valued between R4m – R10m, 26% between R10m – R20m and 39% for properties above R20m. That means two out of every five homes valued at more than R20m were bought by a foreign buyer.

Despite the widespread perceptions, foreign investment has not just been about the upper end of the market, nor restricted to the Western Cape. A suburb-level analysis revealed distinct patterns, each telling a different story about who is buying, why, and with what effect on local property markets.

Lightstone’s analysis of transactions from 2016 to 2025 shows that more than 2.2 million purchases to individuals, or 94%, were made by South African-born buyers. A further 77 902 transactions, or 3%, were by South African citizens born outside the country, while 71 977 transactions, or another 3%, were classified as foreigner buyers.

Properties bought by individuals in South Africa: 2016 – 2025

Foreign buyers accounted for fewer than one in thirty transactions below R1m, but their share of market rose sharply with each price band becoming particularly visible above R4m. (see graph below).

Properties sold by value: 2016 – 2025

While the popular discussion of foreign property buyers has focused almost exclusively on leisure and lifestyle – the European buyer who has acquired a home on the Atlantic Seaboard or the Cape Winelands – the reality is more nuanced.

The Limpopo game estate corridor, also a leisure and lifestyle market, has attracted concentrated foreign investment at Cape Town price levels, as Lightstone reported in Limpopo premium property market sales on the up. In Gauteng, however, Johannesburg’s immigrant communities have also bought property in significant numbers.

Gauteng, Western Cape and Limpopo lead foreign-buyer share

The proportion of foreign buyers was highest in the Western Cape at 7.8%, slightly ahead of Gauteng at 7.3%. This pattern was repeated for properties valued at more than R1m, with the Western Cape’s 11% edging Gauteng’s 10.1%, and Limpopo joined the top three with foreign transactions at 9.1%.

Properties sold above R1m by province: 2016 – 2025

The varied nature of South Africa’s foreign ownership becomes apparent when we drill down to patterns in the country’s major metros and tourism-investment friendly towns. Johannesburg had a higher foreign property ownership share (15.3%) than Cape Town (12.7%) for properties above R1m in value, driven by foreign buyers who bought into established immigrant communities.

Properties sold above R1m by municipalities: 2016 - 2025

Foreign buyers in Limpopo and the Cape were predominantly wealthy lifestyle purchasers. The average foreign transaction price significantly exceeded Johannesburg's (see graph above), which explained why Cape Town leads on total foreign spend despite fewer transactions. The estimated value of properties acquired by foreign buyers in Cape Town over the period was R153bn, compared with R107bn in Johannesburg.

What suburban sales tell us

The Atlantic Seaboard

The Atlantic Seaboard - from De Waterkant through Sea Point, Fresnaye, Bantry Bay, Clifton, Bakoven and Camps Bay to Llandudno - has one of the country’s highest concentrations of foreign buyers.

In Llandudno, two out of every three properties sold over the past decade went to a foreign buyer. Although it is a small market, with fewer than 200 properties, 67 of the 102 properties transacted since 2015 were bought by foreign buyers, at an average value of R29.2m. Foreign buyers are estimated to have acquired around R1.96bn worth of property in Llandudno over the period.

Bakoven and Camps Bay followed similar patterns, with just under 50% foreign-buyer participation and average values of around R16m to R17m. Together with Llandudno, these three suburbs accounted for roughly R8.6bn in foreign-buyer property value.

The higher current values associated with properties bought by foreign buyers could influence values in some areas. In Bantry Bay, the current value of properties bought by foreign buyers was 31% higher than those bought by South African buyers, at R15.1m versus R11.5m. In Tamboerskloof, the difference was 39%, while in De Waterkant it was 29%.

Sea Point recorded the most foreign-buyer transactions (1 118) in Cape Town. At an average foreign-buyer property value of R5.4m, it appears accessible to a broader range of international buyers than the Atlantic Seaboard’s higher-value suburbs.

Foreign-buyer activity also extends inland. Constantia recorded 43% foreign-buyer participation at an average value of R19.5m, while Constantia Heights recorded 34% at R24.4m and Bishopscourt 22% at R22.7m. The Cape Town CBD recorded 39% foreign-buyer participation across 1 259 transactions, reflecting sectional-title investment stock that attracted lifestyle buyers and buy-to-let investors from abroad.

Two southern Peninsula suburbs add another dimension. Scarborough recorded 41% foreign-buyer participation across 138 transactions, while Kommetjie recorded 32% across 253 transactions. Both are remote coastal villages that attracted foreign interest at values well below the Atlantic Seaboard’s higher levels.

Johannesburg’s immigrant buying corridors

Johannesburg tells a different story. Inner-city and near-inner-city neighbourhoods such as Mayfair, Mayfair West, Cyrildene and Yeoville recorded strong foreign-buyer activity, reflecting established immigrant and diaspora communities. Unlike the lifestyle markets in parts of the Cape, there was no meaningful price premium, with foreign buyers participating in broadly the same market as South African buyers.

The Limpopo game estate corridor

Foreign buyers have also been active around Hoedspruit, the Blyde River Canyon and the Lowveld corridor, where access to bushveld and game reserves has supported demand in the Maruleng area.

Western Cape lifestyle villages

Western Cape lifestyle villages such as McGregor, Riebeek Kasteel, Riebeek West, Paternoster and Stanford have also attracted foreign buyers. McGregor and Riebeek Kasteel each recorded more than 100 foreign transactions, with foreign-buyer property values notably higher than those of South African buyers in the same towns.

The Drakenstein wine estates

Drakenstein, which includes Paarl and the Franschhoek valley, was also popular with foreign buyers. Pearl Valley Estate and Val de Vie recorded foreign-buyer participation of 35% and 18% respectively, with average property values of R11.8m and R11.4m.

KwaZulu-Natal North Coast

KwaDukuza, which includes Ballito, Salt Rock, Zimbali and surrounding beachfront estates north of Durban, recorded 1,239 foreign transactions over the period. This places it alongside Knysna and Overstrand as one of the largest foreign-buyer markets outside Cape Town, although it attracts less commentary.

Foreign-buyer activity was visible in areas including Simbithi, Zimbali, Sheffield Beach, Compensation Beach, Dunkirk Estate and Brettenwood. The KZN North Coast profile broadly resembles Cape Town’s premium coastal market, with foreign buyers drawn to secure gated estates and coastal access. Zimbali recorded an average foreign-buyer property value of R8.1m, comparable with some high-end Cape Town suburbs.

Cross-border buying: Musina and the Zimbabwe frontier

At the opposite end of the price spectrum, Musina recorded 67 foreign transactions in Messina township at an average value of R1.84m. Foreign buyers paid approximately 29% more than South African buyers, suggesting demand for formal South African property title and a physical base close to the Zimbabwe border.

Laudium and established diaspora communities

In Tshwane, Laudium recorded 297 foreign transactions, or 29% of transactions analysed. The suburb appears to attract foreign-linked buyers into an established diaspora community.