Luxury property in South Africa: Who's buying and why

South Africa's luxury property market has long attracted attention for its blend of world-class architecture, scenic locations, and relatively affordable prices compared to international luxury hubs. In 2025, this segment of the market is holding steady - and in some cases, outperforming mid-tier properties - thanks to a unique mix of local and international demand.

Who's Buying South African Luxury Property?

1. High-Net-Worth South Africans

Despite economic challenges, there remains a strong base of wealthy South Africans investing in luxury real estate. According to the 2025 Knight Frank Wealth Report, South Africa has over 37,000 high-net-worth individuals (HNWIs) with assets exceeding $1 million, many of whom are reinvesting in property as a hedge against currency volatility.

Local buyers tend to focus on established luxury areas such as Cape Town's Atlantic Seaboard, Sandhurst and Hyde Park in Johannesburg, and the North Coast of KwaZulu-Natal. They value security, privacy, and proximity to top schools and amenities.

2. Returning Expats

Post-pandemic lifestyle shifts and improved remote working opportunities have seen some South Africans abroad returning home. Many are cash buyers, taking advantage of the weak rand to secure high-end homes at what is, for them, a bargain.

Cape Town, in particular, appeals to this group for its lifestyle offering - beaches, wine estates, and international-standard restaurants - while still allowing easy access to global travel routes.

3. Foreign Investors

Foreign interest, which dipped during pandemic travel restrictions, has rebounded in 2024 and 2025. Buyers from Germany, the UK, the Netherlands, and the USA are among the most active, often purchasing holiday homes or investment properties in scenic coastal areas.

For many, South African luxury property represents exceptional value: a R20 million Clifton apartment offers similar views and design to properties in Sydney or Miami priced at four to five times more.

4. Business Executives and Entrepreneurs

Senior executives, tech entrepreneurs, and mining industry leaders are also driving demand in the luxury segment. Many prefer secure lifestyle estates such as Steyn City, Pearl Valley, and Zimbali, which offer golf courses, wellness centres, and private schools within the estate boundaries.

These buyers often view property as both a personal lifestyle upgrade and a long-term asset that will appreciate over time.

Why They're Buying

1. Lifestyle Appeal

South Africa offers a rare combination of natural beauty, diverse climates, and cultural richness - all at a cost of living significantly lower than in most developed nations. From Cape Town's ocean views to the Drakensberg mountains and the warm KwaZulu-Natal coastline, luxury buyers can choose environments that fit their lifestyle preferences.

2. Relative Affordability

Even at the very top end, South African luxury homes are often priced far lower than their international equivalents. This affordability is amplified for foreign buyers due to exchange rate advantages, making it possible to purchase expansive, architect-designed homes with high-end finishes for a fraction of the cost elsewhere.

3. Security and Amenities

Gated estates and private security remain strong drawcards. Many luxury estates offer 24/7 monitored access, medical facilities, fitness centres, and fine dining - creating a "self-contained" living experience that appeals to safety-conscious buyers.

4. Investment Potential

While the broader market can be volatile, luxury properties in prime locations tend to retain or grow their value over time. In certain hotspots like Clifton, Constantia, and Umhlanga Rocks, annual appreciation has outpaced the national average consistently over the past decade.

In 2025, the luxury property market in South Africa is being sustained by a blend of lifestyle-driven buyers and savvy investors. While political and economic challenges remain, prime-location properties continue to be seen as stable, long-term investments - particularly for those with the means to hold them over fluctuating cycles.

The mix of local wealth, returning expats, and foreign buyers ensures demand remains robust, especially in coastal and estate-based properties. For sellers and developers, the key to success will be meeting buyers' expectations for security, design excellence, and sustainability - features that increasingly define the modern luxury market.