Foreign buyers are reshaping SA's premium property market

By Neale Petersen

July 13, 2026

Data & Reports

Nearly 144,000 homes were bought by foreign buyers over the past decade, with demand strongest in South Africa's premium property market.
The Western Cape leads international investment, but Gauteng, Limpopo and KwaZulu-Natal are attracting growing foreign buyer interest.
New Lightstone research reveals foreign buyers are far from one market, with buying patterns shaped by lifestyle, location and investment goals.

Foreign buyers are reshaping SA's premium property market

South Africa's residential property market continues to attract strong international interest, but new research suggests there is no such thing as the "typical" foreign buyer.

While foreign purchasers account for just 6% of the 2.39 million residential property transactions recorded over the past decade, they are playing an increasingly influential role in the country's premium housing market.

According to the latest Lightstone research, almost 144,000 homes were purchased by foreign buyers between 2016 and 2025. Although this represents a relatively small share of overall transactions, international demand increases dramatically at higher price points.

Hayley Ivins-Downes, Managing Executive: Real Estate Services at Lightstone, says foreign buyers accounted for 15% of residential transactions valued between R4 million and R10 million, 26% of homes selling for R10 million to R20 million, and an impressive 39% of properties valued above R20 million.

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"That means almost two out of every five homes worth more than R20 million were bought by foreign buyers," she says.

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It's about more than Cape Town

Although Cape Town's luxury market continues to dominate international headlines, Lightstone's research reveals a much broader and more diverse picture of foreign property ownership across South Africa.

The Western Cape recorded the highest proportion of foreign residential buyers at 7.8%, narrowly ahead of Gauteng at 7.3%, while Limpopo ranked among the country's strongest markets for higher-value international purchases.

Interestingly, Johannesburg recorded a higher proportion of foreign ownership in homes valued above R1 million than Cape Town, driven largely by long-established immigrant and diaspora communities.

Meanwhile, luxury coastal estates on the KwaZulu-Natal North Coast, game reserve developments in Limpopo, and lifestyle towns across the Western Cape continue attracting growing numbers of international buyers seeking lifestyle, investment and retirement opportunities.

No such thing as the 'Typical' foreign buyer

One of the report's strongest findings is that foreign buyers cannot be viewed as a single market.

Some are purchasing trophy homes along the Atlantic Seaboard, others are investing in secure lifestyle estates, while many buy homes close to established business networks, family connections or immigrant communities.

Their purchasing decisions are influenced by a combination of lifestyle, investment potential, retirement planning and business opportunities rather than simply location alone.

The result is a far more diverse and geographically dispersed market than many assume.

Why investors should take notice

Although foreign buyers represent a relatively small percentage of overall residential transactions, they continue to play an outsized role in South Africa's premium housing market.

Their investment patterns provide valuable insight into which regions, suburbs and lifestyle destinations continue attracting both international capital and long-term confidence.

For developers, estate agents and investors, understanding these trends offers an important indicator of future market opportunities.