Despite the tales of South Africans emigrating in droves, figures show a steady decline in net migration rates in recent years, and many expats are returning to South Africa and investing their foreign earnings in property.
“Over and above the wave of semigration to the Cape and the growing interest of high-net-worth foreign investors, we’ve seen a notable increase in enquiries from expats”, say Stephan Thomas and David Burger, Secure Estate Specialists for Lew Geffen Sotheby’s International Realty.
“Many of these buyers left South Africa in their teens or their early twenties, are now in their thirties and forties with families of their own and keen to return for several reasons, including lifestyle and the advantageous exchange rates that enable them to leverage their foreign-earned currency.
“Others are retirees looking to escape the harsh European winters to enjoy their golden years in a temperate climate where they can pursue outdoor leisure activities and their hard currency pensions will stretch that much further.”
One of the most significant drivers behind expats' return to South Africa is indeed the advantageous exchange rates that enable them to maximise the purchasing power of their foreign-earned currency.
“With currencies like the US dollar, British pound, and euro continually strengthening against the South African Rand, expatriates find themselves in a favourable position to invest in property and capitalise on attractive opportunities.”
Lifestyle is the other key driver and Cape Town’s Southern Suburbs are especially appealing as not only are most of the city’s best schools located in the area, but residents are spoilt for choice when it comes to leisure activities and sports facilities, from beautiful beaches nearby to golf courses and restaurants.
In a broader sense, expatriates are lured back by the country’s vibrant cultural scene, culinary diversity, and rich heritage which offer a unique and enriching experience for returnees and their families.
“The other reality is that people living in the UK and Europe are becoming more miserable every day with wars on their doorstep, uncontrolled immigration, and cost of living increases, and, at the end of the day, we all aspire to a better lifestyle and will seek it out,” said Burger and Thomas
Another compelling drawcard is that buyers have a wide choice of property options, particularly in the secure estate sector.
“Estate properties are very popular with these buyers and estates in this area offer everything they need, including controlled access, first-class lifestyle amenities, and a sense of community as well as property options to suit most budgets, although we find that our expat clients generally purchase within two price bands: R9 million to R18m and R25m plus.”
Despite the country’s enduring economic and political challenges, South Africa still boasts pockets of resilience and growth potential and burgeoning sectors such as technology, renewable energy, and tourism offer ample opportunities for entrepreneurial ventures and career advancement.
“For many expats, reconnecting with their roots and embracing their cultural heritage is a compelling motivator for returning to South Africa,” said Burger and Thomas.
“And the sense of belonging, community, and identity they experience fosters a profound emotional connection, prompting them to rediscover and contribute to the nation's social fabric.”
