Cape Town property most popular hot spot for rich Africans

Cape Town – South Africa's Mother City is the most popular hot spot for rich Africans who buy property, according to the latest African Wealth Report.

Africa is home to approximately 145 000 high net-worth individuals with a combined wealth holdings of close to $800bn.

A large number of African high net-worth individuals, the bulk from Angola, Ghana and Nigeria, buy homes in other African countries – most notably Cape Town in South Africa.

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The most expensive suburb for prime property in Africa is Clifton and Bantry Bay in Cape Town with property prices fetching $5 800 per square metre.

Wealthy Africans are also interested in Cape Town’s City Bowl and Greenpoint and Atlantic Seaboard areas Fresnaye, Llandudno and Camps Bay.

Sandton in Johannesburg featured third on the list of property destinations and high net-worth individuals from Africa prefer neighbourhoods in Sandhurst, Hyde Park and Houghton.

READ: 9/10 Richest suburbs now in Cape Town 

According to the report, compiled by Afrasia Bank and global market research group New World Wealth, there are a number of factors that African investors find appealing about South Africa, including:

• Good private healthcare
• Top class private schools
• Luxury residential estates
• Nature, pleasant weather and scenery
• Exclusive shopping centres
• Luxury holiday destinations and
• High-end food stores.

SA a popular holiday destination

Besides from being a popular destination for property investments, South Africa also ranked tops as a holiday destination for the continent’s super rich with approximately 15 000 multimillionaires visiting in 2016.

Cape Town, Johannesburg, the Garden Route, Umhlanga, Durban, Paarl, Franschhoek and Sabi Sands in the Kruger National Park count among the most popular destinations.

READ: Tourism is SA's new gold rush 

The 12 Apostles Hotel and Spa in Cape Town was the top-rated hotel among Africa’s rich, while Lost City and Sun City in the northwest province ranked third on the most visited hotels.

Other favoured destinations on the continent include Cairo in Egypt, the Serengeti in Tanzania, Masai Mara in Kenya and the Okavango Swamps in Botswana.

High net-worth individuals in Africa increased by 19% during the period from 2006 and 2016 and the number is expected to rise by 36% over the next decade to reach 198 000 by 2026.

According to the report, 2016 was a bad year for high net-worth individuals on the continent with a total decrease of 2% in their numbers.

Top African cities for high net-worth individuals

Four South African cities feature in the report’s top African cities for high net-worth individuals.

Johannesburg is the top African city for wealthy Africans with 18 200 millionaires living there. Cairo ranked second with 8 900 and Cape Town third with 8 200.

READ: Rise of the family office for Africa's super rich

Durban, home to 3 200 millionaires, and Pretoria with 2 600, ranked seventh and eighth respectively.