If you ever wondered where most of South Africa’s multi-millionaires and billionaires are living, then here is your answer: Johannesburg.
That’s right, even though Cape Town is home to the most expensive and exclusive residential areas in the country, new research shows that Jozi has the fastest-growing millionaire population.
In the bigger scheme of things though, the South African city is 56th on the list of countries with the fastest-growing millionaire populations.
The data from Henley & Partners in the World’s Wealthiest City Report 2023 – based on figures from New World Wealth – shows that Johannesburg is followed by Cape Town (70th), Durban (78th), Cape Winelands (79th), Garden Route (80th), Pretoria (82nd), and then the Whale Coast (86th).
New York City tops the list with 340 000 High Net Worth Individuals (HNWI) that have investable wealth exceeding US$1 million. The city has 724 centi-millionaires – those that have wealth of more than US$100m, and 58 billionaires with wealth of more than US$1bn.
“New York City wears the crown as the world’s top city with the most millionaires in 2023. Seven of the World’s Top 10 cities listed are in countries that host formal investment migration programs and actively encourage foreign direct investment in return for residence or citizenship rights,” the report states.
New York is followed by Tokyo, Japan; The Bay Area, USA; London, UK; and Singapore.
From 2012 to 2022, the number of HNWI in New York has grown by 40%, while Japan has dropped by 5%. The growth in volume of these individuals during this period has been 68% in The Bay Area and 40% in Singapore. The number in London has declined by 15%.
In terms of South Africa, the report shows that Johannesburg is home to 14 600 HNWIs, 30 centi-millionaires, and two billionaires. Remember, these figures are based in US$, not South African Rands, so the figures will be much higher when comparing those with wealth in our local currency.
For clarity, a HNWI, according to this study, has investable wealth of more than R18.3m, a centi-millionaire has wealth of R1.8bn, and a billionaire has wealth of R18.3bn.
The number of HNWIs in Johannesburg has, however, declined by 40% from 2012 to 2022.
The report reveals the following data for these South African Cities:
Cape Town
Cape Town is home to:
- 7 200 HNWIs
- 26 centi-millionaires
- 1 billionaire
The number of HNWIs increased by 10%.
Durban
Durban is home to:
- 3 600 HNWIs
- 10 centi-millionaires
- 0 billionaires
The number of HNWIs declined by 6%.
Cape Winelands
Cape Winelands is home to:
- 3 400 HNWIs
- 15 centi-millionaires
- 2 billionaires
The number of HNWIs increased by 18%.
The Garden Route
The Garden Route is home to:
- 3 000 HNWIs
- 5 centi-millionaires
- 0 billionaires
The number of HNWIs increased by 22%.
Pretoria
Pretoria is home to:
- 2 400 HNWIs
- 2 centi-millionaires
- 0 billionaires
The number of HNWIs decreased by 35%.
The Whale Coast
The Whale Coast is home to:
- 1 100 HNWIs
- 5 centi-millionaires
- 0 billionaires
The number of HNWIs increased by 25%.
Africa’s top five wealthiest cities in terms of the number of HNWIs are:
1. Johannesburg, South Africa
2. Cairo, Egypt
3. Cape Town, South Africa
4. Lagos, Nigeria
5. Nairobi, Kenya
When it comes to seasonal hotspots, the research shows that Cape Town ranks 12th, with more than 100 centi-millionaires from other parts of the country and world staying in the city during holiday seasons. These visitors include residents and second homeowners, but exclude those staying in hotels.
The report adds: “By 2050, 70% of the global population will live in cities, and governments will compete to attract and retain highly skilled, entrepreneurial, and affluent residents to their urban centres to ensure they thrive in the volatile 21st century and beyond. Of the world’s Top 10 wealthiest cities, seven are in countries actively welcoming foreign direct investment in return for residence or citizenship rights. Rising numbers of global investors are benefiting from this mechanism, securing location optionality for their families, enabling them to live and conduct their businesses across a range of jurisdictions.”
IOL BUSINESS