Why foreign buyers are looking at South Africa

PROPERTY NEWS - As one of the most affordable places to buy for foreign investors, the South African property market has long been popular among international buyers.

With S&P Global updating the country’s credit ranking, Remax Southern Africa predicts that this trend will increase in the near term, particularly within the premium coastal and lifestyle markets.

“South Africa remains a prime location for foreign property investors who, when comparing the purchase price in the country to similar lifestyle destinations abroad, often find they can secure a higher-quality property, in a better location, for a more favourable price,” explains Adrian Goslett, CEO and Regional Director of Remax Southern Africa.

A recent analysis by Lightstone reported that non-resident foreign buyers’ share of transactions in the South African property market has risen from about 2.9% in 2019 to roughly 3.7% in 2024.

This presence is even more pronounced in the premium markets, where foreign buyers made up around 40% of purchases above R10 million over the past year. Lightstone also reported that the Western Cape remains the preferred destination for foreign buyers.

This broader national trend is mirrored within the Remax network. Susan Watts, Broker Owner of Remax Living, stated that foreign buyers accounted for approximately 30% of the office’s annual turnover in the last year, highlighting their continued importance, particularly in high-value areas.

Foreign demand is concentrated in destinations that combine lifestyle, infrastructure, and rental or long-term investment appeal, factors that all make the Western Cape a primary drawcard.

“Cape Town is an incredible City offering a lifestyle that sets it apart on the world stage. The currency advantage is key but there is more to it than that. Cape Town has so much to offer from business opportunities, to dining to arts and culture to natural wonder, we have it all,” says Watts.

Remax Living, who operate along Cape Town’s Atlantic Seaboard and City Bowl, continue to report enquiries from buyers in Germany and the Netherlands. These buyers tend to target secure, low-maintenance properties with high lifestyle utility.

“We have foreign buyers moving to Cape Town to live and those looking to dip their toe into the Cape Town property market by purchasing an investment. Their needs and suburbs of interest are varied. They value safety and security first and access to amenities,” explains Watts.

Remax Southern Africa suggests that several forces are supporting foreign interest:

Remax Southern Africa encourages sellers in coastal and lifestyle regions to speak to a local Remax agent about positioning their properties for international buyers, including pricing guidance, staging, and the practicalities of cross-border transactions.