The Rising Foreign Interest in South African Residential Properties
Category Industry News
South Africa has always been an attractive destination for tourists, but it has also become an appealing choice for foreigners looking to invest in residential properties in recent years. According to data from the Deeds Office and Lightstone's report, there has been a noticeable increase in foreign investment in South African residential real estate.
The Numbers:
In 2022, foreigners made up just under 3% of the total residential property purchases registered at the Deeds Office, accounting for 7,776 transactions. This marks a significant increase from the 2% (4,603 transactions) recorded in 2019. It's essential to note that this upward trend represents a growing interest in South African real estate among international buyers.
Source: Lightstone
Price Bands:
The majority of foreign property purchases in 2022, approximately 51%, fell within the R1 million to R3 million price band. This indicates that many foreign investors are targeting properties in this mid-range segment. Additionally, 25% of transactions were in the R500,000 to R1 million range, while 13% were valued above R3 million.
Source: Lightstone
Where Are Foreigners Buying?
Gauteng remains the top choice for foreigners purchasing residential properties, followed closely by the Western Cape and KwaZulu-Natal. However, there is a notable shift occurring in the Western Cape. While it was previously not the primary destination for foreign buyers, it is now gaining ground, especially in the upper-value property segment. Conversely, Gauteng and the Eastern Cape have seen a decline in upper-value purchases, while KwaZulu-Natal's appeal remains relatively consistent.
Source: Lightstone
Property Types:
Foreign investors in South African residential properties tend to favor Sectional Title properties (35%) and Estate properties (20%) over Freehold properties (45%). This preference reflects a desire for secure, lock-up-and-go residences, aligning with the lifestyle needs of many international buyers.
Source: Lightstone
Author: Myproperty.co.za
