Rich foreigners are flocking to these South African towns for retirement – and here’s why

South Africa has become a sought-after destination for wealthy foreign retirees, with an increasing number choosing the country for its scenic landscapes, affordability, and high-quality lifestyle.
Data from Home Affairs in 2024 revealed approximately 3,645 retirement visa applications were submitted by foreigners from 112 countries.
With an additional 1,686 visas still under processing as of mid-2024, the total interest in retiring to South Africa likely exceeds 5,000 applications.
The top applicants for retirement visas come from the UK, China, Germany, the USA, and Bangladesh, but there is also notable interest from European nations like Switzerland, the Netherlands, and Sweden.
This diverse mix underscores South Africa’s growing appeal among retirees from around the globe.
The demand for retirement properties in South Africa has surged, with property experts noting that 10% of the retiree market is now driven by foreign buyers.
According to Giovanni Gaggia, CEO of Real Estate Services, the areas experiencing the highest demand include the Garden Route, the Cape Winelands, and the KwaZulu-Natal (KZN) North Coast.
The notable towns in these areas are:
- Garden Route: George, Knysna, and Plettenberg Bay.
- Cape Winelands: Stellenbosch, Franschhoek, and Paarl.
- KZN North Coast: Ballito, Umhlanga, and Zimbali.
South Africa’s retirement boom is fueled by a diverse buyer demographic, including local semigrants, international arrivals, and returning expats.
Gaggia noted that many Gauteng residents are seeking a change of pace, opting for coastal or scenic regions to enjoy their golden years.
Europeans, especially from the UK, Germany, and the Netherlands, are drawn to the country’s lifestyle and affordability, while South Africans who have spent years working abroad are returning home to retire in familiar surroundings.
When it comes to property prices, retirees are investing large amounts of money.
Premium homes in the Cape Winelands or KZN North Coast fetch between R5 million and R20 million or more, while a comfortable residence in the Garden Route or charming towns like Hermanus can be secured for R2 million to R8 million.
These investments reflect the value retirees place on high-quality living environments that cater to their needs.
Several factors make South Africa a compelling choice for foreign retirees.
The favourable climate, with sunshine and mild weather in many regions, is ideal for outdoor living and year-round activities.
The cost of living is another major draw, as South Africa offers excellent value for money, particularly when compared to European countries, bolstered by advantageous exchange rates.
Security and a sense of community are also important considerations, with gated communities and retirement villages in South Africa providing retirees with peace of mind.
The country’s well-developed healthcare system further enhances its appeal, offering world-class private hospitals and specialists to meet retirees’ medical needs.
Economist Dawie Roodt also emphasised the economic benefits of this trend, describing foreign retirees as “long-term tourists” who bring significant capital into the country.
This inflow not only supports local property markets but also contributes positively to the rand’s exchange rate.
With its breathtaking landscapes, vibrant culture, and welcoming atmosphere, South Africa is fast becoming a global retirement haven.
Gaggia said the demand for retirement properties shows no signs of slowing, solidifying the country’s reputation as a top choice for those seeking an enriching and fulfilling retirement lifestyle.
George

Knysna

Franschhoek

Paarl

Ballito

Umhlanga
