A recent report finds that Cape Town is the most expensive city for residential property and the second wealthiest city in Africa.
The 2019 AfrAsia Bank Africa Wealth Report provides a comprehensive review of the wealth sector in Africa, including high net-worth individual (HNWI) trends, luxury trends and wealth management trends in 17 countries and 20 cities across the continent.
The report states that South Africa is the wealthiest African market, taking top spot of the “Big Five” wealth markets, above Egypt, Nigeria, Morocco and Kenya. The report also states that South Africans are the second wealthiest individuals in Africa after Mauritians, with an average wealth of $11 5000 per person.
Total wealth refers to the private wealth held by all the individuals living in each country, and includes all the assets (property, cash, equities, business interests) less any liabilities.
The continent accounts for 16% of the world’s population and 1% of the total wealth worldwide.
Africa’s total wealth market sits at $2.2-trillion. About 42% of this amount is owned by HNWI’s. There are 140 000 millionaires, 6 900 multi-millionaires, 310 centi-millionaires and 23 billionaires currently living in Africa.
With 39 2000 millionaires, 2070 multi-millionaires, 94 centi-millionaires and 5 billionaires, South Africa has more than twice as many HNWI’s than any other African country.
Thus, it comes as no surprise that many South African cities are among the wealthiest. The report shows that Cape Town is the second wealthiest city in Africa after Johannesburg, with a total wealth of $133-billion in the city. Durban and Umhlanga are also in the top five.
It also shows that Cape Town is the most expensive city for residential property in Africa. According to the report, residential property in the Mother City costs an average of $5 600 per square metre, double that of Umhlanga and Johannesburg.