Foreigners are choosing this province in South Africa

Property experts have highlighted that Gauteng has seen the highest number of foreign homebuyers in South Africa in terms of pure numbers. However, when looking at the luxury market, the Western Cape is the top contender.

According to Seeff, data shows that foreigners bought 5,039 properties in Gauteng, 2,308 in the Western Cape, 762 in KwaZulu-Natal, and 446 in the Eastern Cape.

However, Samuel Seeff, chairman of the Seeff Property Group, told BusinessTech that it’s important to differentiate between these buyers. Seeff explained that there are essentially two components to “foreign buyers”.

The first would be the foreign expat residents in South Africa who buy property, such as many Zimbabweans and other African nationals. Then, there are international buyers from overseas.

These international buyers invest in property for various reasons, often as second homes, and they will come to South Africa and spend extended periods there.

They also buy property for retirement or work and stay on the basis of setting up a business or coming and working here.

“The highest volume of sales for the first group of foreign buyers, predominantly expats, tend to be in Johannesburg, mostly in the suburbs,” said Seeff.

“These buyers are from African countries such as Nigeria or Zimbabwe, Congo, etc., who will invest in properties in the Sandton area and Pretoria East, including ambassadorial staff.”

Additionally, Seeff noted that various sales come from African countries, including Nigeria, Zimbabwe, Zambia, Congo, and Mauritius.

Looking at where the second group of buyers come from, Seeff highlighted that they are mainly from the UK and Europe, especially Germany, the Netherlands, Denmark, Belgium, Switzerland, France, Austria, and Poland.

He added that there has been an increase in USA buyers over the last two years, as well as more Middle Eastern buyers, e.g., UAE, and the odd Chinese buyer.

Overall, he highlighted that around 3% of buyers in South Africa’s property market are classified as “foreign.”

He also highlighted that about 85% of all foreigners’ purchases are below R3 million (working expats), with around 13% over R3 million, but generally only up to R15 million.

However, the picture changes when considering more affluent buyers, who tend to choose the Western Cape.

Seeff noted that the percentage of sales along Cape Town’s Atlantic Seaboard is around 24% from foreign buyers, as the case was for 2024.

He also said that the price point is drastically higher, where they are often quite prevalent in the R20 million-plus price bands.

“Buyers, especially UK and German buyers, as well as buyers from elsewhere in Europe and the USA, are flocking to Cape Town to invest and seem undeterred by any political noise.”

There seems to be significant confidence in high-end property in Cape Town. While the highest volume in sales is usually below R15 million, there has been a notable uptick in purchases over R20 million.

Notable and recent Seeff sales to foreign buyers include:

• R33.75 million in Camps Bay (UK buyer)
• R33 million in V&A Waterfront (KZN buyer)
• R29 million in V&A Waterfront (German buyer)
• R21 million in Camps Bay (German buyer)

Looking at the general property demand, foreign buyers predominately purchase freehold houses and villas in areas such as the Atlantic Seaboard, City Bowl, Constantia and Bishopscourt.

They also prefer apartments at the Waterfront Marina, houses in Hout Bay and Noordhoek, and a mix of houses and apartments elsewhere, such as Johannesburg and Pretoria.

Whether it be Gauteng or the Western Cape, Seeff noted that the group has seen a notable uptick in sales to local and international buyers, with the first quarter of 2025 ending at a record high.