Foreign buyers in the Western Cape tend to purchase property for lifestyle and leisure, while those in Gauteng participate in the property market alongside local buyers.
Sea Point recorded the most foreign-buyer transactions in Cape Town between 2016 and 2025. Picture: iStock
Foreign buyers continue to play a significant role in South Africa’s luxury property market, with new data showing that foreigners own two out of every five homes valued at more than R20 million.
The figures highlight the strong demand for high-end South African real estate from international buyers, particularly in sought-after coastal and lifestyle destinations, even as foreign ownership remains a relatively small share of the country’s overall residential property market.
The transactions reviewed by Lightstone were limited to natural persons/individuals and excluded those involving companies or trusts.
Foreigners enter luxury property market
Lightstone data revealed that 6% of the approximately 2.39 million residential transactions recorded in South Africa over the last 10 years were bought by foreigners.
While foreign buyers made up a relatively small share of the period’s transactions, they accounted for 15% of transactions on properties valued between R4 million and R10 million, 26% between R10 million and R20 million and 39% for properties above R20 million.
“That means two out of every five homes valued at more than R20 million were bought by a foreign buyer,” noted Lightstone.
More locals buy luxury properties than foreigners
The data, analytics and market intelligence company highlighted that foreign investment has not just been about the upper end of the market, nor restricted to the Western Cape. A suburb-level analysis revealed distinct patterns, each telling a different story about who is buying, why, and with what effect on local property markets.
The company’s analysis of transactions from 2016 to 2025 shows that more than 2.2 million purchases by individuals, or 94%, were made by local buyers. A further 77 902 transactions, or 3%, were by South African citizens born outside the country, while 71 977 transactions, or another 3%, were classified as foreign buyers.
“Foreign buyers accounted for fewer than one in 30 transactions below R1 million, but their share of the market rose sharply with each price band, becoming particularly visible above R4 million,” said Lightstone.
Gauteng, Western Cape and Limpopo lead foreign-buyer share
Lightstone highlighted that the Limpopo game estate corridor has attracted concentrated foreign investment at Cape Town price levels, while Johannesburg’s immigrant communities have also bought property in significant numbers.
Data revealed that the Western Cape continues to lead with foreign buyers at 7.8%, slightly ahead of Gauteng at 7.3%.
“This pattern was repeated for properties valued at more than R1 million, with the Western Cape’s 11% edging Gauteng’s 10.1%, and Limpopo joined the top three with foreign transactions at 9.1%,” noted the company.
Johannesburg had a higher foreign property ownership share (15.3%) than Cape Town (12.7%) for properties above R1 million in value, driven by foreign buyers who bought into established immigrant communities over the past 10 years.
Foreign buyers love the Atlantic Seaboard
Lightstone revealed that the Atlantic Seaboard – from De Waterkant through Sea Point, Fresnaye, Bantry Bay, Clifton, Bakoven and Camps Bay to Llandudno – has one of the country’s highest concentrations of foreign buyers.
In Llandudno, two out of every three properties sold over the past decade went to a foreign buyer.
“Although it is a small market, with fewer than 200 properties, 67 of the 102 properties transacted since 2015 were bought by foreign buyers, at an average value of R29.2 million. Foreign buyers are estimated to have acquired around R1.96 billion worth of property in Llandudno over the period.”
Half of properties in Bakoven and Camps Bay owned by foreigners
The data company highlighted that Bakoven and Camps Bay have just under 50% foreign-buyer participation and average values of around R16 million to R17 million. Together with Llandudno, these three suburbs accounted for roughly R8.6 billion in foreign-buyer property value.
“The higher current values associated with properties bought by foreign buyers could influence values in some areas,” noted Lightstone.
“In Bantry Bay, the current value of properties bought by foreign buyers was 31% higher than those bought by South African buyers, at R15.1 million versus R11.5 million. In Tamboerskloof, the difference was 39%, while in De Waterkant it was 29%.”
Sea Point has the highest foreign-buyer transactions
The data company said Sea Point recorded the most foreign-buyer transactions (1 118) in Cape Town. At an average foreign-buyer property value of R5.4 million, it appears accessible to a broader range of international buyers than the Atlantic Seaboard’s higher-value suburbs.
Constantia recorded 43% foreign-buyer participation at an average value of R19.5 million, while Constantia Heights recorded 34% at R24.4 million and Bishopscourt 22% at R22.7 million.
The Cape Town CBD recorded 39% foreign-buyer participation across 1 259 transactions, reflecting sectional-title investment stock that attracted lifestyle buyers and buy-to-let investors from abroad.
JHB foreign buyers
When it comes to Johannesburg, things are different. Foreigners in the city do not buy for lifestyle and leisure; they participate in the same market as locals.
“Inner-city and near-inner-city neighbourhoods such as Mayfair, Mayfair West, Cyrildene and Yeoville recorded strong foreign-buyer activity, reflecting established immigrant and diaspora communities.”
Foreign buyers have been active around Hoedspruit, the Blyde River Canyon and the Lowveld corridor in Limpopo, where access to bushveld and game reserves has supported demand in the Maruleng area.
In KwaZulu-Natal, KwaDukuza, which includes Ballito, Salt Rock, Zimbali and surrounding beachfront estates north of Durban, recorded 1 239 foreign transactions. Lightstone said this places it alongside Knysna and Overstrand as one of the largest foreign-buyer markets outside Cape Town, although it attracts less commentary.
“The KZN North Coast profile broadly resembles Cape Town’s premium coastal market, with foreign buyers drawn to secure gated estates and coastal access. Zimbali recorded an average foreign-buyer property value of R8.1 million, comparable with some high-end Cape Town suburbs.”
