Foreign buyers in the Western Cape purchase property for lifestyle and leisure, while in Gauteng they participate in the property market alongside local buyers.
Foreign buyers are playing a key role in South Africa's luxury property market, with new figures showing that foreigners own two out of every five homes priced at more than R20 million.
The figures highlight strong demand for high-end South African real estate from international buyers, particularly in coastal and lifestyle destinations, even though foreign ownership remains a relatively small part of the country's overall residential property market.
The transaction was reviewed by lightstone were limited to natural persons/individuals and those associated with companies or trusts were excluded.
Foreigners enter the luxury property market
Lightstone data revealed that of the approximately 2.39 million residential transactions recorded in South Africa over the past 10 years, 6% were purchased by foreigners.
While foreign buyers made up a relatively small share of the period's transactions, they accounted for 15% of transactions on properties priced between R4 million and R10 million, 26% for properties between R10 million and R20 million and 39% for properties above R20 million.
“This means that two out of every five homes valued at more than R20 million were purchased by a foreign buyer,” Lightstone said.
More locals buy luxury properties than foreigners
The data, analytics and market intelligence company highlights that foreign investment is not limited to the upper end of the market, nor limited to the Western Cape. A suburb-level analysis revealed different patterns, each telling a different story about who is buying, why and what impact it is having 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. An additional 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 made less than one in 30 transactions of less than R1 million, but their share of the market grew rapidly with each price band, becoming particularly visible above R4 million,” Lightstone said.
Gauteng, Western Cape and Limpopo lead in foreign buyer share
Lightstone highlighted that the Limpopo Game Estate Corridor has attracted foreign investment concentrated at the Cape Town price level, while Johannesburg's immigrant communities have also purchased significant numbers of properties.
The data showed that the Western Cape leads the way with foreign buyers with 7.8%, slightly ahead of Gauteng with 7.3%.
“This pattern was repeated for properties worth more than R1 million, with the Western Cape's 11% outpacing Gauteng's 10.1%, and Limpopo joining the top three with foreign transactions at 9.1%,” the company said.
Johannesburg had a higher foreign property ownership share (15.3%) than Cape Town (12.7%) for properties worth more than R1 million, driven by foreign buyers who had purchased in established immigrant communities over the past 10 years.
Foreign buyers prefer the Atlantic Seaboard
Lightstone revealed that the Atlantic seaboard – from De Waterkant to Sea Point, Fresnay, Bantry Bay, Clifton, Bykoven and Camps Bay to Llandudno – has one of the highest concentrations of foreign buyers in the country.
In Llandudno, two out of every three properties sold in the last decade went to a foreign buyer.
“Although it is a small market, with less than 200 properties, 67 of the 102 properties transacted since 2015 were purchased by foreign buyers at an average price of R29.2 million. Foreign buyers are estimated to have acquired approximately R1.96 billion worth of properties in Llandudno during this period.”
Half of the property in Bukoven and Camps Bay is owned by foreigners
The data company highlighted that foreign-buyer participation in Buckowen and Camps Bay is less than 50% and the average price is around R16 million to R17 million. Together with Llandudno, foreign buyers' properties in these three suburbs are valued at approximately R8.6 billion.
“The higher current values associated with properties purchased by foreign buyers may impact values in some areas,” Lightstone said.
“In Bantry Bay, the present value of properties purchased by foreign buyers was 31% higher than that of properties purchased by South African buyers at R15.1 million versus R11.5 million. In Tamborskloof, the difference was 39%, while in De Waterkant it was 29%.”
C Point has the highest number of foreign-buyer transactions
Sea Point recorded the highest number of foreign-buyer transactions (1 118) in Cape Town, the data company said. At an average foreign-buyer property price of R5.4 million, it appears accessible to a wider range of international buyers than the higher-priced suburbs of the Atlantic seaboard.
Constantia recorded 43% foreign-buyer participation at an average price of R19.5 million, while Constantia Heights recorded 34% at R24.4 million and Bishopscourt 22% at R22.7 million.
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 overseas.
JHB Foreign Buyer
When it comes to Johannesburg, things are different. Foreigners in the city don't shop for lifestyle and comfort; They participate in the market on the same basis as local people.
“Strong foreign-buyer activity was recorded in inner-city and near-inner-city areas such as Mayfair, Mayfair West, Sirilden and Yeovil, reflecting established immigrant and expatriate communities.”
Foreign buyers have been active around Hoedspruit, the Blyde River valley 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 beach estates north of Durban, recorded 1 239 foreign transactions. Lightstone said this puts it, along with Knysna and Overstrand, as one of the largest foreign-buyer markets outside Cape Town, although it attracts less comment.
“The KZN North Coast profile broadly resembles Cape Town's premium coastal market, with foreign buyers ready to secure gated estates and coastal access. Zimbali recorded an average foreign buyer property value of R8.1 million, which is on par with some high-end Cape Town suburbs.”