Global buyers power SA Property as tourism and wealth migration surge

• Foreign buyers are fuelling momentum in premium regions, led by strong tourism recovery and favourable pricing.
• Western Cape dominates offshore demand, while Gauteng and KwaZulu-Natal attract strategic investment interest.
• Non-resident buyers seek guidance on tax, financing, and compliance as high-value transactions increase.

International Capital Accelerates SA’s Property Momentum

‍Global buyers, particularly from Germany, the Netherlands, and the United Kingdom are injecting billions into South Africa’s property market. Their activity spans coastal hotspots, urban investment hubs and luxury estates, with non-resident investment now a defining feature of the upper end of the market.

According to Bradd Bendall, National Head of Sales at BetterBond, the trend remains strong:

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‍“The Western Cape continues to attract the majority of offshore buyers, accounting for over 40% of all transactions above R10 million. But we’re also seeing growing interest in KwaZulu-Natal and Gauteng as demand spreads into other high-growth regions.”

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Tourism Recovery: The catalyst for foreign investment

‍South Africa’s tourism sector is experiencing a powerful rebound.

• 1.3 million international visitors have arrived so far this year, 83 000 more than in 2024.
• July arrivals surged 20% year-on-year, according to the BetterBond Property Brief.

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Bendall explains the connection clearly: “Tourism and property investment are closely linked. Many overseas buyers initially arrive as tourists and leave as prospective homeowners.”

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This renewed tourism activity is driving offshore interest not only in holiday homes, but also in long-term investments, guest accommodation assets, and lifestyle-driven purchases.

While foreign buyers account for fewer than 5% of all home sales, their spending power is significant.

• Average foreign buyer price: R2.7 million
• Average local buyer price: R1.6 million

Buyers who finance their investment often take bonds of up to 50%, notes BetterBond Private Clients specialist Ashley Powell.

Guiding non-resident buyers through the process

‍Many foreign investors are unfamiliar with South Africa’s purchasing framework and rely on structured guidance.

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“BetterBond works closely with non-residents from bond application to sale conclusion,” explains Powell.

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This includes assistance with:

• Bank negotiations
• International documentation
• Compliance requirements
• Proof-of-funds submissions

Bendall adds:

• Foreigners are taxed only on income from South African property (rental returns or capital gains).
• There are no restrictions on the type or value of property they may purchase.
• Standard local fees (transfer duty, legal costs) still apply.
• Long-term stays require the relevant residential visas.

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“It’s essential that high-net-worth buyers feel confident and informed when entering the local market,” Bendall says.

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Regional Performance: Western Cape Leads, others rising

Western Cape: The Epicentre of Offshore Demand

‍For the past two years, the 22 suburbs with the most foreign buyers have all been in the Western Cape.

Top areas include:

• Scarborough
• Chapman’s Peak
• Bakoven
• The Atlantic Seaboard
• City Bowl
• Stellenbosch & Somerset West
• Pearl Valley in Paarl

This aligns with broader wealth migration trends.
The Africa Wealth Report 2025 ranks:

• The Whale Coast as Africa’s 3rd-fastest-growing millionaire hotspot
• The Cape Winelands as 4th-fastest-growing

Cape Town continues to command premium offshore spending, surpassing R1 billion in the first five months of 2025 alone. Prime property ranges from R2 million apartments to R70 million+ luxury homes.

Cape Town is home to 8,500 millionaires and 35 centi-millionaires, making it Africa’s top prime real estate market at USD 5,800/m² — and on track to surpass Johannesburg in total wealth by 2030.

Gauteng: High buyer volumes, strategic investment

As South Africa’s economic powerhouse, Gauteng attracts the highest volume of foreign buyers, particularly from other African nations. Preferred investment nodes include:

• Sandton
• Rosebank
• Waterkloof (Pretoria)

Prices range broadly from R3 million to beyond R20 million, depending on location and asset type.

KwaZulu-Natal: Coastal Appeal for Europe and the UK

KZN continues to draw British and European investors seeking secure coastal lifestyle properties. Demand is especially strong in:

• Ballito
• Zimbali
• High-end North Coast estates

These locations appeal to remote workers, retirees, and lifestyle-focused buyers seeking security, amenities, and proximity to the ocean.

Foreign Buyers Drive High-End Market Strength

‍Though only 3.7% of all home purchases, foreign buyers account for:

• 40% of all sales above R10 million, per Lightstone
• A growing share compared to 2.9% in 2019

Their influence is particularly evident in coastal and high-demand lifestyle regions where supply is limited and pricing power is strong.

Offshore Investment Continues to Boost SA Property

‍South Africa’s appeal to foreign buyers is underpinned by:

• A recovering tourism economy
• Competitive pricing
• Strong lifestyle advantages
• A stable exchange rate
• High-value growth potential in elite coastal and urban regions

As Bendall concludes:

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‍“International buyers see real value in our market. South African real estate offers exceptional lifestyle benefits and relative affordability compared to other global hotspots.”

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Offshore capital, combined with resilient domestic demand, will continue to play a meaningful role in strengthening South Africa’s property market into 2026 and beyond.

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