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South Africa – Buying Property

Legal Restrictions on Property Ownership by Foreign Nationals

  • Foreign nationals are allowed to purchase properties in South Africa.
  • Foreigners are required to obtain Foreign Investment Permit if the purchase value exceeds R 10 million.
  • Some regions may have restrictions on land ownership based on the location’s environmental, cultural or social sensitivities.

Average Property Prices

  • The average property price in South Africa is around ZAR 1.2 million (USD 84,000).
  • Prices vary greatly between regions, with Cape Town and Johannesburg being the most expensive.
  • Coastal areas such as Durban, the Garden Route, and the Western Cape also have higher prices compared to other regions.

Popular Property Locations

  • Cape Town and Johannesburg are the most popular locations for property purchases in South Africa.
  • Coastal areas, such as Durban, the Garden Route, and the Western Cape, are also attractive due to the beaches and tourism industry.
  • Areas with good infrastructure, such as schools, shopping centers and hospitals, are also sought after by property buyers.

Upcoming Property Areas

  • The Waterfall City development in Midrand is an upcoming area that is attracting property buyers.
  • The Atlantic Seaboard area in Cape Town is also seeing increased property development and growth.
  • The city of Port Elizabeth is also showing potential for growth with various infrastructure projects underway.

New Trends in Property Market

  • The trend towards eco-friendly and sustainable living is growing in popularity in South Africa.
  • Property developers are building more energy-efficient and environmentally conscious homes to cater to this demand.
  • Remote work has led to an increase in demand for properties with larger spaces and home offices.

Investment in Property


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  • Buying property in South Africa can be a good investment opportunity due to the steady growth in the property market.
  • Careful research and market analysis is recommended before making a purchase, as some areas may not perform as well as others.
  • The rental market is also strong, making it a potential source of passive income for property owners.

Common Property Types

  • Apartments are the most common type of property in South Africa, especially in cities like Cape Town and Johannesburg.
  • Detached houses, townhouses, and villas are also popular, especially in suburbs and coastal areas.
  • Rural properties, such as small farms and game reserves, are also available for purchase.

Typical House Buying Procedure in South Africa

Finding a Property:
The first step in the house buying process in South Africa is to find a property that you want to purchase. This can be done through various channels such as real estate agents, online property listings, or by searching for properties in your desired area.

Surveys/Inspections:
Once you have found a property, it is advisable to have it inspected by a professional surveyor to ensure that there are no structural or other issues with the property. Additionally, a pest and termite inspection may also be conducted to ensure that the property is free of infestations.

Making an Offer:
After you have completed any inspections and are satisfied with the property, you can make an offer to the seller. The offer can be made through the real estate agent or directly to the seller. It is important to note that the offer is subject to the property being transferred to your name and the property being registered in the Deeds Office.

Notary:
In South Africa, a notary is not typically needed for the buying process.

Exchange of Contracts:
When your offer is accepted, the next step is to exchange contracts with the seller. This is typically done through the real estate agent, who will prepare and finalize the sale agreement. Once the contract is signed, the deposit is paid, and the sale is considered binding.

Transfer of Property:
After the contract is signed, the next step is to transfer the property to your name. This is done by registering the sale in the Deeds Office. Once the registration is complete, you will be the legal owner of the property.

Finding a Reputable Lawyer

When buying a property in South Africa, it is important to find a reputable lawyer to assist with the legal aspects of the transaction. One way to find a reputable lawyer is by asking for recommendations from friends, family, or real estate agents. It is also possible to search online for lawyers with experience in real estate transactions.

Fees and Professional Organizations
The fees charged by lawyers for property transactions can vary, so it is important to ask for a quote before engaging their services. Lawyers in South Africa do not need to be members of a particular professional organization to practice, but it is advisable to use a lawyer that is a member of the Law Society of South Africa.

Pitfalls and Problems

There are several problems expats may encounter when buying a property in South Africa. One common issue is a lack of understanding of the local legal system and property laws. Additionally, there may be issues with the transfer of the property, such as outstanding debts or unpaid taxes.

Purchasing Property Through a Company

It is possible to purchase property through a company in South Africa, but it is not always desirable. One of the main disadvantages is that companies are subject to additional taxes and regulations. Additionally, owning property through a company may also make it more difficult to obtain financing. It is recommended to seek professional advice before considering purchasing a property through a company.


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