Foreigners are flocking to this province in South Africa
Gauteng remains the top destination for foreigners choosing to settle in South Africa, but recent trends show that the Western Cape is increasingly becoming a competitor for international and local residents alike.
While Gauteng remains the most populated province, home to a significant number of foreigners, the allure of the Western Cape, particularly Cape Town, is growing rapidly.
Census data highlights that Gauteng is comfortably the most populated province in South Africa, with 15.8 million inhabitants.
Of these, about 1.1 million are foreign-born, which significantly exceeds the foreign population of the Western Cape, where only 368,000 foreigners reside.
Gauteng’s metropolitan centres, particularly Johannesburg and Pretoria, have traditionally been attractive due to their affordability and economic opportunities.
Johannesburg, in particular, is the most affordable major metro in the country, with average property transaction prices of around R1.2 million, below the national average of R1.3 million.
Nearly 77% of 2024’s transactions in the city have been for properties under R1.5 million, with almost half of those below R700,000.
This affordability is a key factor in why many foreigners, particularly those returning to South Africa after living abroad, choose Gauteng.
Despite this, the Western Cape has seen an increasing share of both foreign buyers and local semigrants.
Property experts note that in areas like the Atlantic Seaboard, City Bowl, and Southern Suburbs, international buyers accounted for as much as 32% of sales in early 2024.
This surge in foreign interest is driven by several factors.
The Western Cape offers a picturesque lifestyle with its stunning landscapes, warm climate, and proximity to beautiful beaches, making it particularly appealing to foreign retirees.
Many Europeans, especially from Germany, Switzerland, and the Netherlands, are choosing to spend part of the year in the Western Cape to escape the harsh winters back home.
Somerset West has become a popular location for these retirees, especially within gated communities where properties range from R4 million to R12 million.
The influx of foreign capital into the Western Cape is proving to be beneficial to the South African economy.
Economist Dawie Roodt points out that these foreign retirees serve as long-term visitors who inject valuable foreign currency into the economy, stabilising the rand’s exchange rate.
This trend is expected to grow, with Roodt encouraging the government to introduce more visas targeted at foreign retirees to further boost this economic benefit.
The Western Cape’s rising popularity is not just limited to foreigners; it has also become the top destination for South African semigrants—individuals relocating from other provinces in search of a better quality of life.
Data from Lightstone Property’s 2024 report shows that about one in four homeowners in South Africa who sell their properties move to a different province, with the Western Cape being a leading choice.
Gauteng and the Western Cape dominate the sell-to-buy market, accounting for 48% and 23% of these transactions, respectively.
However, Gauteng has seen a notable decline in repeat buyers, with a 10% drop in homeowners choosing to stay within the province.
Many Gautengers are opting for a move to the Western Cape, with around 3,500 making the shift in 2024 alone.
The trend is also reflected in the migration from KwaZulu-Natal, where 870 homeowners relocated to the Western Cape.
Fourteen of the top fifteen towns experiencing a net gain in new homeowners are located in the Western Cape, further emphasising its appeal.
This illustrates that while Gauteng continues to be a stronghold for foreign immigrants due to its affordability and economic opportunities, the Western Cape is rapidly catching up, thanks to its scenic appeal and growing foreign interest.
Whether for international retirees or South African semigrants, the Western Cape’s combination of natural beauty, appealing property market, and favourable lifestyle conditions is positioning it as an increasingly attractive destination in the years to come.
Loading ...
