Property investors in South Africa have been slowing down their portfolio expansions, with the volume of purchases stabilising in 2022 and then declining in 2023 and 2024.
This marks a shift from the trend observed between 2006 and 2021, when more investors were buying properties each year.
According to Lightstone, a company specialising in data, analytics, and systems for property, automotive, and business assets, around 60% of South Africa’s 153,000 investors own three properties.
Additionally, 20% own four properties, 10% have five properties, and another 10% own six or more properties.
Investor activity has plateaued in Cape Town, while Johannesburg and Pretoria have seen a 2% increase, and Durban has experienced a 1% growth.
Hayley Ivins-Downes, Lightstone’s managing executive of real estate, commented: “It was highly probable that the lack of investment property in Cape Town was driven by stock shortages pushing house prices up, and offering investors an attractive exit on their investments.”
In South Africa, residential properties make up 87% of investments. The remaining 13% are non-residential, with 75% of these located in non-metro areas, suggesting agricultural use or intent.
The volume of investor-held non-residential properties has decreased by 8% since the COVID-19 pandemic.
Foreign buyers must have a visa, permanent residence, or a South African passport to purchase property in the country.
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