This is how much money foreigners are spending on property in South Africa
Foreigners are buying more property in South Africa, but only one province is seeing a substantial rise in purchases of pricey homes.
According to Lightstone, foreigners made up just under 3% (7,776) of the 267,856 residential property purchases in 2022. This was a 2% increase from the 4,604 homes in 2019.
51% of these sales in 2022 were between R1 million and R3 million, making it the largest single category.
In 2022, 837 (11%) of sales were valued at less than R500,000, 1,939 (25%) were valued between R500,000 and R1 million, whilst only 1,048 (13%) were higher than R3 million in value.
This trend has continued into 2023, with 1.839 (51%) properties sold up to August in the R1 million to R3 million category:
Although the Western Cape is often touted as the emigration and semigration hub of South Africa, Gauteng is actually the preferred choice for foreigners buying property in South Africa, followed by the Western Cape and KwaZulu-Natal.
During the release of the 2022 census, Statistician-General Risenga Maluleke said that Gauteng’s population growth over the last decade has been led by people outside of South Africa.
He added that 50% of immigrants chose Gauteng as their destination.
In the Western Cape, migrants from Gauteng, the Eastern Cape and outside South Africa made an almost equal contribution.
That said, the Western Cape sees the most purchases in the upper band, and this is only accelerating.
Whereas, in Gauteng and the Eastern Cape, the upper-value purchases by foreigners have declined. KwaZulu-Natal is has been more of less consistent over the last five years.
With this in mind, BusinessTech has looked at several properties in South Africa’s four biggest provinces for immigrants at various price points:
Western Cape – Above R3 million
- 3 Bedroom House in Vredehoek, Cape Town
- Price: R3,995,000
R1 million to R3 million – Gauteng
- 2 Bedroom Apartment Dunkeld West, Johannesburg
- Price: R2,750,000
R500,000 to R1 million – KwaZulu-Natal
- 2 Bedroom Apartment in Pelham, Pietermaritzburg
- Price: R750,000
<=R500,000 – Eastern Cape
- 1 Bedroom Apartment for sale in Grahamstown Central, Grahamstown (A.K.A Makhanda)
- Price: R495,000
Read: New R84 billion smart city launching soon in South Africa
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