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South Africa Real Estate:Foreign Investment

South Africa is a popular place for overseas investment, with the exchange rate often working in the favor of the potential investor. There are a lot of different places that attract a lot of foreign buyers, with most of the areas being in main cities. There are also a high number of investors looking for property in the more popular tourist destinations, especially the more temperate regions.



The government is currently in the process of tabling a proposal that will restrict foreign ownership of land and will effectively makethe sale of land to foreigners impossible.

  • As of March 2013 this is still only a proposal and has not in any way been ratified by government.

Popular urban investment areas

South Africa doesn’t have many large urban areas, however each of the larger cities is popular with foreign investors for different reasons. The main areas are considered to be:

  • Cape Town
  1. Due to its Mediterranean climate, cosmopolitan nature, easygoing lifestyle and first-world facilities, this city is not only a favorite with tourists but also with ex-patriates and those looking to invest in property for leisure or business purposes.
  • Durban
  1. With a semi-tropical climate, this city is a firm favorite with those looking to enjoy relatively good weather all year round. With a focus on the northern parts of the city, this is another city that benefits well from lots of tourist attention and makes it attractive to investors looking to invest in holiday real estate.
  • Johannesburg
  1. Dubbed as the business capital of South Africa and colloquially known as the City of Gold, this is seen as the place to be if you want to be involved in business. Certain parts of the city are definite investment opportunities and the city is well known for being a wealth magnet.
  • Pretoria
  1. Traditionally lagging behind the previously mentioned cities, Pretoria has experienced a boom in recent years due mainly to the city’s attempts to improve its image and the fact that a large number of embassies are based here.
  2. Many of the investment opportunities are found in the eastern parts of the city and correlate with the closeness to the aforementioned embassies.

Rural areas

While most of the rural areas don’t appeal to the majority of people, those rural areas immediately outside of the urban areas are popular due to their proximity to the cities. This has lead to a lot of people choosing to retire to such areas.

Notable areas worth mentioning:

  • Stellenbosch (renowned for its wine farms and fast being incorporated into Cape Town)
  • Langebaan (renowned as a holiday destination).

Both of these places attract more than the fair share of foreign investment as they are ever-popular areas that offer good return on investment.

Coastal areas

  • The east coast is especially popular due to its good weather and relative proximity to the highly populated Gauteng province (especially north eastern coast).
  • The west coast does not attract much investment due to its lack of infrastructure, extreme weather and lack of water.

One comment on “South Africa Real Estate:Foreign Investment

  1. vianamartin
    April 3, 2014

    As I have been travelling there twice and plan to come back, I do find this to be a very good plan. 🙂

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