Cape Town - Not only Cape Town, but it seems a number of other Western Cape regions have millionaires who have decided to take up residence in the province.
This is according to the 2024 Africa Wealth Report, published by international wealth advisory firm Henley & Partners in collaboration with global wealth intelligence partner New World Wealth.
The 9th edition of the annual report reveals that there are currently 135 200 high-net-worth individuals (HNWIs) with liquid investable wealth of USD 1 million or more living in Africa, along with 342 centi-millionaires worth USD 100 million or more, and 21 dollar billionaires.
Despite a tough past decade which saw a 20% decline in its millionaire population, South Africa remains home to more than twice as many HNWIs as any other African country, with 37 400 millionaires, 102 centi-millionaires, and 5 billionaires, followed by Egypt with 15 600 millionaires, 52 centi-millionaires, and 7 billionaires.
At city level, Johannesburg holds its place as the wealthiest in Africa, with 12 300 millionaires, 25 centi-millionaires, and 2 billionaires. Cape Town follows closely with 7 400 millionaires, 28 centi-millionaires, and 1 billionaire.
The report highlighted that in the Western Cape, the Cape Winelands region is home to 3 600 millionaires, 16 centi-millionaires and 2 billionaires.
The Cape Winelands has several luxury lifestyle estates that have attracted HNWIs such as Val de Vie, De Zalze, and Domaine des Anges.
Also, most of the wine farms in the area are owned by ultra-wealthy HNWIs and centi-millionaires, who often retire there.
The Garden Route region, which has 3 200 millionaires and 5 centi-millionaires, has seen a rise in permanent residents over the past few years.
There are also a number of top-end estates in this area that are attracting HNWIs including Fancourt, Pezula, Simola, Pinnacle Point, Oubaai Golf Estate, De Meermin, and Whale Rock Ridge.
The Whale Coast region has 1 200 millionaires and 5 centi-millionaires.
The Whale Coast region stretches from Mossel Bay to Storms River with notable towns on the route which include Plettenberg Bay, George, Knysna, Wilderness, and Mossel Bay, as well as smaller up-and-coming hotspots such as Nature’s Valley and Keurboomstrand.
Beachy Head Drive in Plettenberg Bay is especially affluent and has been crowned “Africa’s Millionaire Row”.
Data analysis from New World Wealth showed that Cape Town contains many of Africa’s most opulent residential suburbs, including “New World Wealth’s Prime 7”.
This is comprised of Clifton, Bantry Bay, Camps Bay, Bishopscourt, Constantia, Llandudno, and St James.
The city is currently benefiting from the ongoing “semigration” of large numbers of HNWIs from other parts of South Africa (especially Johannesburg and Pretoria).
It is also an increasingly popular retirement destination for migrating millionaires from Europe and the rest of Africa. Cape Town is on track to overtake Johannesburg to become Africa’s wealthiest city by 2030.
Head of Research at New World Wealth, Andrew Amoils, said that when it comes to future millionaire-magnet cities and regions Cape Town, the Whale Coast, Kigali, Windhoek, Swakopmund, Nairobi, Tangier, and Marrakech are all expected to enjoy 85%+ millionaire growth over the next 10 years.
“Solid growth of over 80%+ is also projected in Lusaka and Mombasa. Cape Town is on track to overtake Johannesburg to become Africa’s wealthiest city by 2030.
“We expect several major Johannesburg-based companies to move their head offices to Cape Town over the next decade, which should help to drive wealth growth in the city.”
When it comes to luxury real estate, Cape Town continues to lead the way in the list of Africa’s most expensive cities with prime residential spaces valued at $5 600 per m2.
South Africa has five contenders in Africa’s Top 10 Most Expensive Cities including Plettenberg Bay ($2 400 per m2), Hermanus ($2 300 per m2), Umhlanga ($2 000 per m2), and Sandton ($1 800 per m2).
Commenting in the report, Berry Everitt, CEO of the Chas Everitt International property group, describes Africa — and South Africa in particular — as a rising star in the global luxury real estate sector.
“In contrast to other major economic blocs, the continent has a mostly young and rapidly growing population, as well as a very fast rate of urbanisation.
“This is already generating significant demand for services and products and pulling in an increasing number of HNWIs who are finding lucrative opportunities in the communications, financial services, infrastructure, retail, and manufacturing sectors, as well as in agriculture, logistics, commodities, and both residential and commercial real estate. And this, in turn, is boosting the demand for luxury properties.”
Amol Prabhu, Head of Private Banking: Africa at Barclays, agrees that African UHNWIs are increasingly building their lives and legacies along international wealth corridors.
“It’s increasingly feasible for a set of grandparents (often the originators of the family wealth) to reside somewhere such as Knysna in South Africa, while at least one of their children lives in the UK, another in Dubai, and have extended family (who are all part of the family global business) residing in India or Singapore.”