The Western Cape continues to dominate South Africa’s luxury housing market, accounting for over 40% of property sales above R10 million. International buyers—mainly from Germany, the Netherlands and the UK—are increasingly investing across the country, with growing interest also seen in KwaZulu-Natal and Gauteng, according to BetterBond.
Tourism recovery driving demand
South Africa’s tourism rebound is fuelling foreign investment. International arrivals reached 1.3 million so far this year—83,000 more than in 2024—and climbed 20% year-on-year in July. BetterBond notes that many visitors become property buyers, seeing opportunities for both rental income and long-term value. Though foreign purchasers represent less than 5% of all transactions, their average spend—R2.7 million—is well above that of local buyers.
Financing and guidance for foreign buyers
BetterBond supports non-resident purchasers through the bond and transfer process. Most overseas buyers finance up to half of their purchase and are taxed only on income earned in South Africa, such as rent or capital gains. They face no limits on property type or value, but long-term stays require the appropriate visas.
Western Cape leads premium markets
All of the top 22 suburbs for foreign buying over the past two years are in the Western Cape, including sought-after areas like Scarborough, Chapman’s Peak and Bakoven. Demand extends to the Atlantic Seaboard, City Bowl, Stellenbosch and Somerset West, with estates such as Pearl Valley remaining highly desirable.
The region’s popularity aligns with wealth-migration trends. The Africa Wealth Report 2025 identifies the Whale Coast and Cape Winelands as among Africa’s fastest-growing luxury hotspots. Cape Town itself continues to attract major high-end investment, with over R1 billion spent by international buyers in the first five months of 2025. It is Africa’s most expensive prime property market and home to the continent’s highest number of centi-millionaires.
Gauteng and KZN see rising investment
Gauteng draws the largest number of international buyers overall, particularly from other African markets, who favour areas near business and diplomatic centres such as Sandton, Rosebank and Waterkloof.
KwaZulu-Natal remains popular with British and European purchasers, especially along the North Coast, where secure lifestyle estates appeal to remote workers and retirees.
Foreign buyers lifting luxury segment
International investors account for 40% of sales above R10 million—up from 2.9% of total buyers in 2019—showing growing appetite for premium real estate.
With steady tourism and a favourable exchange rate, foreign capital is helping sustain South Africa’s housing market into 2026.
“Global buyers recognise the value and lifestyle advantages South Africa offers,” BetterBond says.
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