Property investors in South Africa are easing off from growing their portfolios – as volumes of purchases levelled off in 2022 before falling in 2023 and 2024.
Before that more investors bought properties each year between 2006 and 2021.
The analysis comes from Lightstone, a provider of data, analytics and systems on property, automotive and business assets.
Roughly 60% of South Africa’s 153 000 investors own three properties, 20% have four properties, 10% five properties and 10% six or more properties.
Investor activity has flattened in Cape Town, while Johannesburg and Pretoria (+2%) and Durban (+1%) had grown.
Hayley Ivins-Downes, Lightstone’s managing executive of real estate, said: “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 account for 87% of investments, with just 13% not classed as residential, most of which (75%) were in non-metro areas pointing towards likely agricultural usage or intent.
The volumes of these investor held non-residential properties had dropped by a significant 8% post COVID.
Overseas buyers need to have a visa, permanent residence or a South African passport to buy property in the country.
