The Western Cape remains the top destination for foreign property buyers in South Africa, with demand particularly strong in the luxury segment.

According to property data released by Lightstone in May 2025, foreign buyers accounted for 40% of all residential transactions over R10 million in 2024.

This trend is most evident in the small coastal village of Scarborough, located on the Cape Peninsula near the Cape Point Nature Reserve. In 2024, over half of all property sales in Scarborough were to foreign buyers—the highest proportion in the country.

The area has seen dramatic price growth, with average property values rising from R2.3 million in 2016 to R7.85 million in 2025 – a 241% increase, according to data from Property24 and the Deeds Office.

Scarborough’s popularity is not an outlier. Lightstone data shows that all 22 of the top suburbs with the highest proportion of foreign buyers are located in the Western Cape. Following Scarborough are Chapmans Peak, Bakoven, De Waterkant, and Cape Town Central.

Lightstone’s analysis – focused on residential properties purchased by individual buyers with single-title deeds – also tracks whether foreign buyers hold South African residency.

Since 2019, the share of buyers without residency has steadily increased, overtaking those with residency.

In 2024, non-resident foreign buyers made up 3.7% of total transactions, up from 2.9% in 2019. Meanwhile, the share of foreign buyers with residency declined from 3.8% to 3.3% over the same period.

Non-resident foreigners also tend to spend more. In 2024, they paid an average of just over R2.7 million per property – more than double the R1.2 million average paid by local buyers.

Across all high-value property brackets, the Western Cape leads. Foreign buyers accounted for just over 40% of transactions above R10 million, about 25% in the R5 million–R10 million range, and roughly 15% between R3 million and R5 million.

The data clearly shows: the higher the property value, the more likely it is to be purchased by a foreigner – most often in the Western Cape.