From offshore to on-land: A surge in South African property investment
While global exposure still has its place, a growing number of South Africans are reassessing risk, stability and returns, and finding renewed confidence in the resilience and long-term value of local property.
The shift is not just emotional. It is visible in the numbers. BetterBond’s latest data shows home-loan applications are 16% higher year on year, and 23.5% up from the low point in Q3 2023. With the prime lending rate now 10.25% after the latest cut, and 150 basis points lower than it was at the start of September last year, affordability has started to loosen in a way the market can feel.
A renewed trust in the local market
South Africa’s housing market has not been immune to pressure, but it has remained remarkably functional through a difficult rate cycle. Official data from Statistics South Africa’s Residential Property Price Index shows national property price inflation at 6.6% year on year (as at June 2025), with notable regional differences such as the Western Cape at 10.2% and Gauteng at 3.1%.
At the same time, transaction activity and buyer appetite are responding to easing conditions. One of the clearest signals is that access to homeownership is improving again. BetterBond reports that average deposits required for first-time buyers are down 20% year on year, which matters because deposits can be the biggest barrier between “ready to buy” and “able to buy”.
Investing where you can stay close to your assets
Property is an investment you live with, even when you do not live in it. That is why proximity counts. Owning locally makes it easier to check on an asset, stay on top of maintenance and appoint reputable professionals, from managing agents to attorneys.
It also reduces decision fatigue and “buyer’s remorse”. Investors can assess neighbourhood trends with more confidence, understand municipal realities, compare local rental demand and lean on relationships with experienced agents. In a world where uncertainty is global, many people are placing a higher value on clarity and control.
A desire to build something lasting at home
Beyond financial gains, local property investment speaks to legacy. Buying a home or investment unit in South Africa is a way to secure the future for one’s family, create generational stability and build wealth in a tangible, meaningful way.
Families want to leave behind assets that anchor future generations. A property rooted in the same country where memories are made and milestones are celebrated becomes part of a family’s story. Local real estate provides the opportunity to grow wealth while strengthening the foundation on which that story is built.
The past few years reshaped how people think about home. Proximity to loved ones, community connections, lifestyle choices and quality of life matter more than ever. These priorities are influencing investment decisions too.
The rental market remains an important pillar for investors looking for monthly cashflow. The PayProp Rental Index reports average rent at R9,286 in Q3 2025, with 4.9% year-on-year growth.
For investors, this reinforces a key point: local property can provide a blend of potential capital growth and rental income, particularly when the asset is well located, appropriately priced and professionally managed.
A grounded path to long-term security
Offshore investments still have their place, but local property offers something more rooted and enduring. It provides reliable returns, a clear understanding of market forces and the comfort of owning an asset in the country you call home.
If you are considering buying locally, focus on the basics that drive outcomes over time: location quality, affordability, rental demand, total cost of ownership and the strength of the professional team supporting the transaction. The goal is not to chase certainty in faraway places. For many investors, it is to build it steadily, right here.