SA buyers zoom in on Dubai, Mauritius, Zimbabwe property

According to the Seeff Property Group, South Africans and Expatriates working in the country have become an attractive market for property in neighbouring African countries and also for the Mauritius and Dubai property markets.

Dubai (UAE, Middle East)
At the top of the list is Dubai, which is gaining in popularity with South African and African investors, says Nombasa Mawela, licensee for Seeff Dubai, who is on another roadshow across the country to meet the demand from high-net-worth (HNWI) investors in the main centres across SA.

The Dubai property market has exploded over the last two years, with growth last year amounting to a 36% rise in transaction volumes and a 20% increase in overall value. There is also a buoyant short—and long-term rental market, says Nombasa. There’s already a large SA expat population there. Still, she says investors from South Africa and other countries such as Nigeria are increasingly investing in the lucrative rental market, especially off-plan developments with favourable payment plans.

Sales have already topped a few hundred million rand over the last year, with most buyers investing in the AED 1 million to AED 3 million (approx. R4m-R12m) range, mostly apartments and townhouses for which there is high rental demand. Rental yields, for example, can be up to 5%-8% in popular areas like Dubai Marina, Downtown Dubai, and Business Bay. Luxury villas have also been sold for upwards of AED 3 million (approx. R12m) in prime locations like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate.

The Dubai 10-year Golden Visa has become a big drawcard, but it requires a property investment of AED 2 million (approx. R9.8m) minimum, says Nombasa. Aspects such as lifestyle, stability, ease of doing business, tax benefits, and ability to open a bank account and obtain property finance are all attractive to local buyers.

Mauritius (Indian Ocean Island)
Severine Dalais-Pietersen, licensee for Seeff Mauritius, says the number of South Africans moving to Mauritius is also increasing, including families and retirees. There’s also a strong demand for holiday properties for own use and rentals in the lucrative rental market. Short-term holiday rentals or long-term leasing to expatriates can generate attractive returns. She says South Africans have mostly purchased apartments linked to a 5-star hotel or as a second home, which they want to enjoy when they come on holidays on the island.

Most South Africans purchase in the USD375,000 to USD 600,000 range (approx. R6.9m – R12m) range, which is also the minimum requirement for permanent residency. Long-term rentals of villas yield an income upwards of MUR 130,000 (approx. R65,000) per month, and two-bed apartments and penthouses from MUR 60,000 (approx. R25,000), depending on the property and location. Rental yields vary, with luxury properties offering between 3% and 6%, depending on location and occupancy rates.

Mauritius is favoured for its safety, politically stable environment, proximity to South Africa, and high-quality lifestyle, which includes healthcare and education. The lifestyle resembles what South Africans enjoy, and Mauritius is only a 6-hour flight. Foreigners can also open bank accounts and obtain finance. The tax regime is particularly favourable with a low tax rate, no capital gains or inheritance tax, and free repatriation of capital. She says South Africans can also leverage the Double Taxation Avoidance Agreement between South Africa and Mauritius to optimise their tax exposure.

Zimbabwe (Neighbouring country)
Another interesting country that is setting its sights on SA buyers is Zimbabwe. Patience Patongamoyo, licensee for Seeff Zimbabwe, says there are many Zimbabwean expats working in SA and the UK. Interest is growing in investing in property ownership back home, which she says is very lucrative because it is home, and one day, expats will want to return.


House prices in Harare’s northern suburbs (the most expensive areas) range from USD300,000 to USD1 million (approx. R5.5m-R18m). The eastern, southern, and western suburbs are more affordable, ranging from USD60,000 to USD250,000 (approx. R1.09m-R4.5m). There are also ideal developments, such as Dabuka Village in Ruwa, about 24 km from the Harare CBD on Mutare Road.

Rental rates in the northern suburbs range from USD1,000 to USD4,000 (R18,100-R72,000) monthly for a modern apartment with 4-5 bedrooms. In other areas, they range from around USD500-USD1,000 (approx. R9,000-R18,100) per month.

In the interim, these properties offer good investment prospects as the rental market offers attractive yields. Expats, in fact, comprise a huge proportion of property purchases, and there are many diaspora landlords, a sector that has grown significantly over the last few years. Therefore, Seeff now offers a property management service to ensure these property investments are considered.

For more information, visit Seeff Dubai (https://dubai.seeff.com/), Seeff Mauritius (https://seeff.mu/), and Seeff Zimbabwe (https://www.seeff.co.zw/)