Rich foreigners are snapping up R20 million properties in South Africa – this is what they’re getting

·8 Nov 2024

In 2024, South Africa’s property market remains an appealing option for affluent international buyers, especially in coastal and scenic locations.

Cape Town, particularly areas like the Atlantic Seaboard, Clifton, Camps Bay, and Constantia, is the primary hub for these purchases.

International demand has surged in the luxury property market, with foreign nationals making up around 32% of high-end sales in some areas.

These buyers often pay substantial sums for prime properties: recent transactions have seen Germans purchasing homes between R20 million and R24.5 million, and buyers from Switzerland, the UK, and the Netherlands acquiring properties at prices between R25 million and R38 million.

Other popular regions for wealthy foreigners include the Helderberg area, particularly Somerset West, which is attracting European buyers, especially from Germany, Switzerland, and the Netherlands.

Here, they seek properties in secure estates, priced between R4 million and R12 million, a range considered affordable for European buyers looking for a high standard of living.

The V&A Waterfront and some of Cape Town’s smaller luxury apartments and mixed-use developments are also popular among those interested in both city and coastal lifestyles.

Foreign investors are drawn to South Africa for several reasons.

For one, favorable exchange rates offer them significant purchasing power, allowing their dollars or euros to stretch further.

Additionally, South Africa’s cost of living remains comparatively low, allowing affluent foreign residents to maintain a comfortable lifestyle with less financial burden.

The country’s year-round mild climate, especially in the Western Cape, and stunning landscapes also make it a desirable place to escape colder European winters.

Many buyers stay in South Africa for extended periods, often three to six months a year, to enjoy its pleasant weather and natural beauty.

This seasonal residency trend is evident among buyers from countries such as Germany, Switzerland, and the Netherlands, who have established strong communities in South African locales like Somerset West and gated estates in the Cape.

The market’s attractiveness is boosted by a variety of luxury options that align with foreign buyers’ preferences for secure, high-end, and well-located properties.

Despite South Africa’s socio-economic challenges, such as load shedding and governance concerns, the demand remains strong.

Local agencies report that foreign retirees are increasingly choosing South Africa, both as a permanent and seasonal home.

The economic impact of this trend is positive for South Africa, as these foreign residents contribute to local spending and boost the property market, helping to stabilise the rand and provide a steady flow of foreign capital.

Considering these lastest trends, BusinessTech looked at homes priced at around R5, R20, and R38 million in the mentioned areas to give an idea of what these houses look like.

These homes are lised below.

4 Bedroom House — R5.95 million