Foreign interest in Western Cape property has picked up despite the local water crisis, new figures from Lightstone Properties have revealed. The number of property transaction involving foreign buyers rose by 4% in the Western Cape in January compared to a year ago.
This means international buyers are not deterred by the ongoing water crisis, Lightstone head of real estate Ivins Downes said in a statement.
"It can, therefore, be deducted that [foreign investors] are embracing the changes [of the water crisis] and not afraid to apply the restrictions and alternative living standards," Downes said.
He said in 2016, when the rand traded R17.00 to the US Dollar, Western Cape properties performed far worst.
"The tumultuous economic and political environment during  is accountable for more losses in the real estate market than that of the looming Day Zero."
Basil Moraitis, Pam Golding Properties Atlantic Seaboard area manager, told Business Insider South Africa that investors are attracted to Cape Town's "international profile".
"Cape Town is seen as a truly global city, with technological innovations such as fibre optic connectivity placing on par with its international counterparts," he explained.
International sales currently make up 3% of Pam Golding's total sales in the province - with most international buyers originating from the United Kingdom, Germany, Portugal, Belgium, Switzerland, US, the Netherlands and Zimbabwe.
These are some of the top properties that were recently sold to foreign buyers:
Moraitis said there has been a spike in foreign buyers over the last three months, demonstrating renewed confidence in the market. The realtor recently sold an expansive Camps Bay home to a Belgian buyer in February for a whopping R23.95 million.
One of RE/MAX largest foreign sales was a R14.5 million five-bedroom property in Cape Town's prestigious Higgovale in the City Bowl. The property features a pristine pool and great views of Table Mountain and the Foreshore. Spokesperson Kayla Cloete said the property was sold to a US resident who is planning to move to South Africa permanently.
RE/MAX sold a property along the Wilderness beachfront near George to a German national for an impressive R7.25 million. Pam Golding spokesperson Anél Lewis said the property was solely bought for its location, near the beach. "The purchasers are planning to demolish the property at a further cost of between R350,000 to R500,000, with the intention of rebuilding thereafter," she said.
In Hermanus, a three-bedroom single level home was sold to a German investor for R5.4 million in the exclusive Arabella Country Estate. "In our experience, foreign buyers tend to be attracted to lifestyle estates where there are many other foreign owners," Johann Larney from RE/MAX Hermanus said.