Cape Town to mint 6,100 new millionaires in projected wealth boom

By Seth Onyango, via bird story agency

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

The picturesque city is forecast to add 6,100 millionaires over the next ten 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 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, its 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 US$10 million.

The city also boasts of a vibrant cultural and creative scene, hosting events such as the Cape Town International Jazz Festival, the Design Indaba, and the Cape Town Art Fair.

Meanwhile, 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 programs 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, United Arab Emirates, comes fifth, with a 120% increase, from 4,100 to 9,000.

Henley & Partners figures show the total investable wealth currently held in the BRICS bloc amounts to US$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’ (with more than US$100 million in investable assets) and 549 billionaires,” the BRICS Wealth Report states in part.

bird story agency