South Africans living abroad are increasingly reconsidering investments back home as lower interest rates and improving macroeconomic signals lift confidence in the local property market.
According to Bradd Bendall, BetterBond’s national head of sales, expatriates are returning to the market either to secure homes ahead of a permanent return or as part of longer-term investment strategies.
“A combination of easing borrowing costs and renewed confidence in South Africa’s financial outlook has begun to translate into increased buying interest,” Bendall said.
Foreign buyers in high-value market
Meanwhile, Lightstone data shows that while the proportion of foreign buyers with South African residency declined from 3.8% in 2019 to 3.3% in 2024, offshore purchasers continue to dominate the high-value segment of the market. Foreign buyers accounted for about 40% of property transactions above R10m, highlighting their influence despite lower overall volumes.
Optimism driven by stronger macroeconomic conditions is boosting confidence in South Africa’s housing market, translating into heightened activity and a more positive market sentiment. In parts of Johannesburg, for instance, property stock is now in short supply — a scenario that has not been seen in years, according to Pam Golding Properties.
“Foreign buyers — including returning South African expatriates and investors from elsewhere on the African continent — continue to show growing interest in residential property across all price bands and regions.
“While they come from countries around the world, the majority originate from the UK, Germany, Zimbabwe, the US, the Netherlands, Switzerland, China, Mozambique, the Democratic Republic of the Congo and France,” said Pam Golding CEO Andrew Golding.
While this trend favours the Western Cape, Gauteng’s luxury market is seeing renewed interest from international buyers, particularly from across Africa.
— Andrew Golding, Pam Golding CEO.
“While this trend favours the Western Cape, Gauteng’s luxury market is seeing renewed interest from international buyers, particularly from across Africa.
“Overall, the country’s luxury market is facing a shortage of stock, with high demand concentrated in the Western Cape — especially in Cape Town’s City Bowl, Atlantic Seaboard and Southern Suburbs, including Bishopscourt and Constantia, as well as in the Cape Winelands towns of Stellenbosch and Franschhoek,” Golding said.
He noted that property sales of R50m — and even beyond R100m — are no longer rare exceptions in the high-end market. Prices are exceeding expectations amid strong demand from a mix of local, national and international buyers.
Cape Town leads metro market recovery
Among metro housing markets, Cape Town was the first to recover and remains the primary engine of the rebound. Tshwane is also contributing strongly, while the recovery has now spread to all major metro markets.
Cape Town continues to outperform other metros in terms of the housing price index, while two of Gauteng’s three metro markets — Johannesburg and Ekurhuleni — continue to lag behind.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.