Cape Town is predicted to become the fourth fastest-growing wealth hub per capita among the Brics states, according to new insights from Henley & Partners (H&P).
The city is forecast to add 6100 millionaires over the next 10 years, over and above the current 7 400, representing an 85% jump.
The trend is attributed to the ongoing migration of affluent individuals, particularly from areas like Johannesburg and Pretoria within South Africa.
Additionally, Cape Town is becoming increasingly popular as a retirement haven for high-net-worth individuals from various regions including Africa, Europe, Russia, and the UK. The city is projected to accommodate over 13,500 millionaire residents by 2033.
Factors contributing to Cape Town's robust performance include its thriving tourism industry, its status as a regional technology hub, and its appealing lifestyle and climate.
Cape Town boasts some of the world's most affluent neighbourhoods such as Bantry Bay, Bishopscourt, and Camps Bay, where luxury properties can command prices upwards of $10 million.
The city also has a vibrant cultural scene, playing host to events like the Design Indaba and the Cape Town Art Fair.
According to the Brics Wealth Report, there's a growing trend among South Africans towards citizenship by investment for enhanced travel freedom.
In 2023, demand for investment migration programs saw a significant surge of 43% year-on-year, placing South Africans among the top 10 global applicants and inquirers.
Portugal emerged as 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 attracted considerable interest from South African enquirers.
While real estate-linked investment migration has traditionally been favored, preferences are evolving with changing program dynamics.
For instance, Portugal's golden visa now emphasizes capital and fund investments and business options, reflecting shifting investor sentiments.
For those seeking real estate investment options, Greece's Golden Visa Program is attractive, requiring a minimum investment in eligible properties or time-sharing agreements.
In the Caribbean, the Antigua and Barbuda Citizenship by Investment Program offers straightforward application procedures and favorable terms, including visa-free travel to numerous destinations, making it an appealing choice for South African investors.
Many South Africans pursuing investment migration are not aiming to emigrate permanently but rather seek increased mobility, a backup plan for their families, access to quality education and work opportunities, and domicile diversification to safeguard their wealth and secure a brighter future for generations to come.
Beyond Cape Town, the report identifies Riyadh, the capital of Saudi Arabia, as the fastest-growing wealth hub among the Brics nations, with a projected 90% increase in its millionaire population by 2033.
This is followed by Bengaluru, India, with a 125% increase, and Jeddah, Saudi Arabia, with a 100% increase. Sharjah, in the United Arab Emirates, ranks fifth with a projected 120% increase.
Henley & Partners' data reveals that the total investable wealth in the Brics bloc currently stands at $45 trillion, with the millionaire population expected to grow by 85% over the next decade.
The report notes that there are currently 1.6 million individuals with investable assets exceeding $1 million in the grouping of the world's leading emerging economies, including 4716 centi-millionaires and 549 billionaires.
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