/ 5 February 2024

Cape Town to mint 6100 new millionaires in projected wealth boom

Beach Near Camps Bay In Cape Town. Western Cape. South Africa
New millionaire residents in Cape Town will surge by 85% in 2033, making it one of the Brics nations fastest growing wealth hubs. (Photo by: Peter Adams/Avalon/Universal Images Group via Getty Images)

Cape Town is predicted to become the fourth fastest-growing wealth hub per capita among the Brics states, according to new insights from Henley & Partners (H&P).

The city is forecast to add 6100 millionaires over the next 10 years, over and above the current 7 400, representing an 85% jump.

“It is currently benefiting from the ongoing ‘semigration’ of large numbers of HNWIs [high-net-worth individuals] from other parts of South Africa (especially Johannesburg and Pretoria),” H&P notes in its inaugural Brics Wealth Report.

“It is also an increasingly popular retirement destination for migrating HNWIs from Africa, Europe, Russia and the UK. Cape Town is projected to reach over 13 500 millionaire residents by 2033.”

The report attributes Cape Town’s impressive performance to its strong tourism sector, status as a regional tech hub and its attractive lifestyle and climate.

Cape Town is also home to some of the most affluent suburbs in the world such as Bantry Bay, Bishopscourt, Camps Bay, Clifton, Constantia, Fresnaye, Llandudno and St James, where luxury properties can fetch upwards of $10 million. 

The city has a vibrant cultural and creative scene, hosting events such as the Design Indaba, and the Cape Town Art Fair.

The Brics Wealth Report further reveals that South Africans are increasingly opting for citizenship by investment to gain travel freedom.

The demand for investment migration programmes surged by 43% in 2023 year-on-year, placing South Africans among the top 10 global applicants and enquirers.

Portugal was the most sought-after destination for South African investors, followed by St Kitts and Nevis, St Lucia, and Dominica. Portugal, Mauritius, Namibia and Greece also received high interest from South African enquirers.

Outside of Cape Town, the report ranks Riyadh, the capital of Saudi Arabia, as the fastest-growing wealth hub among the Brics countries, with a projected increase of 90% in its millionaire population, from 18 200 in 2023 to 35 000 in 2033.

Riyadh is followed by Bengaluru, India, with a 125% increase, from 13 200 to 30 000, and Jeddah, Saudi Arabia, with a 100% increase, from 7 500 to 15 000. Sharjah, in the United Arab Emirates, comes fifth, with a 120% increase from 4 100 to 9 000.

H&P figures show the total investable wealth currently held in the Brics bloc amounts to $45 trillion and its millionaire population is expected to rise by 85% over the next 10 years.

“There are currently 1.6 million individuals with investable assets of over $1 million in the grouping of the world’s leading emerging economies, including 4,716 centi-millionaires or ‘centis’ ( more than $100 million in investable assets) and 549 billionaires,” the Brics Wealth Report states. — bird story agency