South African millionaires are increasingly investing in property outside of the country, and Dubai, Mauritius, and Zimbabwe are emerging as top destinations.
This is according to Seeff Property Group, who noted that these three countries are seeing a surge in South African buyers looking for property.
According to the Seeff Property Group, these countries offer attractive returns, lifestyle benefits, and long-term security, drawing in both high-net-worth individuals (HNWIs) and expats.
Nombasa Mawela, licensee for Seeff Dubai, said that Dubai‘s property market has seen explosive growth over the past two years.
“Transaction volumes rose 36% in the past year, while property values increased by 20%. South African buyers are particularly attracted to off-plan developments, which often come with flexible payment plans and high rental yields,” said Mawela.
She added that many are investing in apartments and townhouses priced between AED 1 million and AED 3 million (approximately R4 million to R12 million).
South Africans are targeting high-demand areas such as Dubai Marina, Downtown Dubai, and Business Bay.
According to Mawela, the properties in these areas typically yield between 5% and 8% annually in rental income.
For those seeking more luxurious options, villas in prime locations such as Palm Jumeirah, Emirates Hills, and Dubai Hills Estate are also being purchased for upwards of AED 3 million (around R12 million).
One of the biggest incentives for South African investors is Dubai’s 10-year Golden Visa program, which requires a minimum property investment of AED 2 million (R9.8 million).
Mawela added that Dubai’s lifestyle, political stability, ease of doing business, tax benefits, and accessible banking system make it a top destination for property investment.
Another hotspot highlighted by Seeff for South Africans looking to diversify their property portfolios is Mauritius.
Severine Dalais-Pietersen, licensee for Seeff Mauritius, reported a rising trend of South Africans, including families and retirees, relocating to the island.
“Many investors are also purchasing holiday homes, either for personal use or to capitalise on the profitable rental market,” said Dalais-Pietersen.
She added that luxury apartments linked to five-star hotels or second homes for vacation are popular among South African buyers.
Dalais-Pietersen also said the typical investment ranges from USD 375,000 to USD 600,000 (R6.9 million to R12 million), which also qualifies buyers for permanent residency.
“Long-term rental yields are appealing, with villas generating upwards of MUR 130,000 (R65,000) per month and two-bedroom apartments or penthouses commanding MUR 60,000 (R25,000) monthly.”
Dalais-Pietersen highlighted that Mauritius’ proximity to South Africa, political stability, and attractive tax policies are key factors driving this investment trend.
The island offers a low tax rate, no capital gains or inheritance tax, and free repatriation of capital. South Africans can also benefit from the Double Taxation Avoidance Agreement between the two countries.
Zimbabwe has also become an attractive market for South Africans, as well as Zimbabwean expatriates working in South Africa and the UK.
Patience Patongamoyo, licensee for Seeff Zimbabwe, said the northern suburbs of Harare, the most expensive areas, see house prices ranging from USD 300,000 to USD 1 million (approximately R5.5 million to R18 million).
She noted that more affordable options in the eastern, southern, and western suburbs are also in demand, ranging from USD 60,000 to USD 250,000 (R1.09 million to R4.5 million).
In addition to established areas, new developments like Dabuka Village in Ruwa, located about 24km from Harare’s central business district, offer promising investment opportunities.
Rental rates for modern apartments with four to five bedrooms in the northern suburbs range from USD 1,000 to USD 4,000 (R18,100 to R72,000) per month. In other regions, monthly rents vary between USD 500 and USD 1,000 (R9,000 to R18,100).
Patongamoyo noted that the rental market offers attractive yields, making these properties valuable as both investments and future homes.
She also highlighted that Seeff Zimbabwe now offers property management services to assist diaspora landlords in maintaining and optimising their investments.
Credit: business Tech
