An Austrian family recently bought a R72-million holiday home in Silverhurst Estate, Constantia in the Western Cape after only one visit and within 48 hours thereafter.

All the way from the London Home Counties, a wealthy British retiree chose to buy property in South Africa to play more golf all year around.

Arnold Maritz, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay, says if these recent sales are not proof enough of South Africa’s growing popularity among foreign buyers, then consider this: “A French couple from Paris, with six kids attending a prestigious private school, is buying a Cape Town home without seeing it in person and offering more than the asking price.”

Many estate agents in the Western Cape and KwaZulu-Natal, especially in areas such as the Atlantic Seaboard and Umhlanga, see a significant rise in viewing requests from higher-end international buyers considering relocating to South Africa following the December/January festive season.

Maritz says the enquiries emanate from a mix of referrals by friends and family “in the know”, first visits, second visits and general research about places to retire in the sun. Returning expats, and those with the flexibility to earn foreign currency or maintain European jobs while based in Cape Town and travelling between countries for work, when necessary, also show huge interest.

While some are interested in property as an investment, most international buyers look for a holiday or a permanent retirement home.

Keri Culver, Senior Immigration Consultant at Xpatweb, confirms South Africa is increasingly popular among people who want to live here under the Retired Person’s Visa, one of the most accessible of its nature globally. Among foreign nationals most interested in retiring in South Africa are Europeans, British citizens, Americans and Canadians.

Due to some longstanding challenges and backlogs at the Department of Home Affairs (DHA), resulting in unusual long visa processing times, it is best to seek professional guidance from a trusted immigration service provider who will help you navigate the visa application process efficiently. Experts familiar with the process and knowing how to avoid any pitfalls, will bring peace of mind and save applicants time, she says. 

According to Culver the required income threshold for a Retired Person’s Visa is easily attainable for prospective retirees who come with US Dollar, British Pound and Euro. Due to the favourable exchange rate, they find the South African cost of living significantly more affordable. Another attractive feature is that there is no age restriction for those who want to apply for this visa.

The DHA issues the Retired Person’s Visa for a period of up to 4 years. The visa allows for unrestricted entry and exit and affords immediate eligibility for Permanent Residency.

The DHA’s latest available figures show in the last four years, South Africa received more than 5 000 applications from foreigners from more than 100 countries who want to come and retire in South Africa.

The top countries for retirement visa applications are the UK, China, Germany and the USA. Notable applications have also been received from Switzerland, the Netherlands and Sweden, the Minister of Home Affairs said in a parliamentary answer.

Culver says most of those enquiring about the Retired Person’s Visa, are in the planning phase of moving here. They are in no rush to decide and can plan and properly consider where they want to stay before acquiring the right property. 

Dr Andrew Golding, Chief Executive of the Pam Golding Property group, says since 2023, they have seen increased interest from and sales concluded to international buyers from a range of countries, including the UK, Germany, Zimbabwe, USA, Switzerland, Austria, UAE, France, Belgium, Nigeria and other African countries. 

Popular areas among foreign buyers include Cape Town, the Boland and Overberg regions (Franschhoek, Stellenbosch and Hermanus among others), the Garden Route (including Plettenberg Bay, Knysna and George), areas north of Durban such as Ballito, and the likes of Fourways, Rosebank and Sandton in Gauteng.

According to Maritz Lew Geffen Sotheby’s see notable interest from the UK and European buyers, mainly high net-worth and ultra-high net-worth individuals, with the R20-million plus price band very active. “We’re also fielding queries from US buyers and started noticing interest from far afield places like Bermuda and the Cayman Islands.”

Culver says it is no surprise as South Africa has a lot to offer in terms of a pleasant climate, high standard private healthcare and leisure facilities, natural beauty varying from mountain ranges and wildlife to beaches and winelands, exquisite golf courses and luxury estate living. It is estimated that close to 50% of residents in the prestigious Val de Vie Estate in Paarl, Western Cape, are foreigners. Some luxury homes in the estate were recently advertised with a price tag of between R38-million and R42-million.

She says properties in South Africa are generally 20% to 30% bigger than in Europe and the average cost of a 150 sq meter three-bedroom house in major cities varies between R1.9-million and R2.4-million (the rough equivalent of USD 112 000 or EUR 110 000).

According to Maritz foreign buyers still make up a small part of the national market. Current information available in Propstats (which typically reflects the higher end of the price range of property sold in the Peninsula), show there were over 300 sales to foreign buyers in 2024. That makes up about 10% of the volume of sales, and about 16% of the turnover.

“We would estimate that the total sales to foreign buyers probably amounts to less than 1% of sales country wide, in both volume and turnover.”

Written by Xpatweb