When we think of where millionaires might decide to spend their days in Cape Town, images of Llandudno, Camps Bay or Clifton might come to mind Given their track record of attracting the wealth pool, you’d be forgiven for assuming that the latest batch of millionaires would follow suit. Well, move over Atlantic Seaboard, because, those in the millionaire’s club are looking to place their mansions in down-to-earth settings.
The Africa Wealth Report by NW Wealth (also understood as the ‘benchmark of luxury sector research in Africa’ as it self-describes) recently released luxurious data for 2022, identifying trends and insight into wealth progressions and movements on our continent.
Its wealth tiers involve a variant of finely well-to-do people, including millionaires or ‘HNWIs’ who have accumulated a wealth of $1 million or more.
The report includes a lifestyle estate trend category, influenced by the COVID-19 pandemic. The data associated indicates that some of the top spots for millionaires to relocate to, are none other than Hermanus, Plettenberg Bay and Franschhoek.
As a matter of fact, South Africa was an entire focal point of the study. Factors drawing HNWIs to SA as per the report include: the weather, beaches and scenery, well-established top-end residential areas (Camps Bay did get a shout out here) One of the 20 biggest stock exchanges in the world, free media, and a banking system that’s well-developed.
While Cape Town was ranked second in the total wealth dissection of our country, parts of the Western Cape saw positive figures for the wealth growth rate from 2011 to 2021, including Paarl, Franschhoek, Stellenbosch, the Cape Whale Coast and the Garden Route.
One of the most common cripes people often associate with Cape Town, is the money factor – the expensive association with our city has become almost something of a personality trait for Cape Town. However, this recent data is challenging the woe. Earlier this year, Statista released its ‘Most expensive cities to live in Africa as of 2022’, which compared the cost of living index for some African cities. It saw Johannesburg and Pretoria’s indexes surpass Cape Town in this aspect.
Hermanus, Paarl, Franschhoek and Stellenbosch all received recognition as the fastest growing areas for HNWIs, with the sleepy town of Hermanus known for its champagne air and serenity taking the cake.
Overall, the growing trend for the upper-echelon of residents and travellers seems to be a desire for that down-to-earth peace small towns are often associated with. Franschhoek’s Sterrekopje also recently claimed a spot on one of the world’s best new hotels lists by Travel + Lesiure’ – which only adds to the claim that less is starting to become more in the modern era.
Perhaps it’s something COVID-19 taught us (to appreciate simplicity) or perhaps the millionaire’s are bored with what flashy really buys. Either way, when it comes to reconnecting with nature and oneself through the process, the Mother City is certainly shining.