Why wealthy foreigners are buying homes in this small Western Cape town

Western Cape – Wealthy international buyers are increasingly turning their attention to Barrydale, a small town in the Western Cape’s Klein Karoo, as demand grows for lifestyle properties outside South Africa’s major urban centres.

According to BusinessTech, international buyers account for about 15% of property sales in Barrydale, with foreign purchasers spending between R2.5 million and R5 million on homes, cottages and smallholdings.

Seeff Property Group said that properties offering security, gardens and scenic views are particularly sought after.

“International buyers are spending between R2.5 to R5 million in Barrydale,” the report quoted the agency as saying.

The growing interest comes after Barrydale was named South Africa’s Small Town of the Year by Daily Maverick in December 2025.

The town scored 94% after being selected from 2,069 reader nominations and assessed on factors including cleanliness, municipal performance, safety, community spirit, the natural environment, family friendliness and connectivity.

An oasis in the desert

Daily Maverick described Barrydale as “an oasis in the desert”, highlighting its tree-lined streets, gardens, mountains and distinctive small-town character.

The property trend is part of a wider shift in which international buyers are looking beyond Cape Town and other established luxury markets for lifestyle-driven property.

BusinessTech reported that the Western Cape accounts for more than 40% of South Africa’s high-value non-resident property transactions. Lightstone data cited by the publication shows foreign buyers account for 7.8% of property transactions in the province, increasing to 11% for homes valued above R1 million.

Other Western Cape lifestyle destinations attracting foreign buyers include Greyton, Montagu, Prince Albert, Stanford, McGregor, Riebeek Kasteel and Paternoster.

Natural surroundings 

Lightstone data also indicates that foreign-owned homes in key lifestyle markets command a significant premium, with their valuations averaging 29% to 39% higher than properties owned by domestic buyers. Lightstone’s latest research similarly points to strong demand from foreign purchasers in South Africa’s premium residential market.

Barrydale’s appeal is largely linked to its natural surroundings and relatively affordable property prices compared with Cape Town’s luxury suburbs. Located between the Overberg and Klein Karoo, the town is surrounded by mountains, vineyards, orchards and indigenous vegetation.

The trend also reflects a broader appetite for smaller South African towns offering a combination of scenery, security, space and a slower pace of life. Earlier coverage by BusinessTech found rising international interest in other Western Cape lifestyle markets, while Private Property reported growing international interest in farmland and lifestyle properties in areas including Barrydale, Montagu, Swellendam and Robertson.

With its recent recognition as the country’s best small town and growing international property demand, Barrydale is emerging as an unlikely but increasingly attractive destination for wealthy overseas buyers.