Wealth Management Trends in Luxury and Prime Property

Wealth Management Trends in Luxury and Prime Property

The Africa 2018 Wealth Report provides insights on wealth trends in Africa over the past 10 years, with projections for the next 10 years. The report provides comprehensive wealth breakdowns for 17 African countries and 23 African cities.

Total individual wealth held in Africa currently amounts to around US$2.3 trillion. This figure is expected to rise by 34% over the next 10 years, reaching US$3.1 trillion by the end of 2027. We expect Mauritius, Ghana, Rwanda and Uganda to be the strongest performing wealth markets in Africa during this period (90% to 150% growth rates).

As part of the report, the wealthiest cities in Africa are reviewed by total wealth held. “Total wealth” refers to the private wealth held by all the individuals living in each city. It includes all their assets (property, cash, equities, business interests) less any liabilities. We exclude government funds from our figures.

WEALTH BANDS

Billionaires – Those individuals with net assets of $US 1 billion or more

Centi-millionaires – Those individuals with net assets of $100 million or more (320 people)

Multi-millionaires – Those individuals with net assets of $10 million or more (7,100 people)

Millionaires/High Net Worth Individuals (HNWI’s) – Those individuals with net assets of $1 million or more (148,000 people)

TOP 10 CITIES

Johannesburg: Total wealth held in the city amounts to US$276 billion. Our figures for Johannesburg include Sandton. Major sectors in the city include: financial services (banks), professional services (law firms, consultancies), construction, telecoms and basic materials.

Cape Town: Total wealth held in the city amounts to US$155 billion. Major sectors in the city include: real estate, financial services (fund management), retail and tourism.

Cairo: Total wealth held in the city amounts to US$140 billion. Major sectors in the city include: real estate & construction, financial services and basic materials.

Lagos: Total wealth held in the city amounts to US$108 billion. Major sectors in the city include: basic materials, real estate & construction, telecoms, transport and financial services.

Durban: Total wealth held in the city amounts to US$55 billion. Our figures for Durban include Umhlanga, Ballito, Zimbali and La Lucia. Major sectors in the city include: real estate, finance, healthcare, construction, retail and transport.

Nairobi: Total wealth held in the city amounts to US$54 billion. Major sectors in the city include: financial services, real estate & construction, retail, tourism, FMCG, telecoms and basic materials.

Luanda: Total wealth held in the city amounts to US$49 billion. Major sectors in the city include: real estate & construction, transport and basic materials (oil & gas).

Pretoria: Total wealth held in the city amounts to US$48 billion. Major sectors in the city include: basic materials, manufacturing and financial services.

Casablanca: Total wealth held in the city amounts to US$42 billion Major sectors in the city include: basic materials, manufacturing and financial services.

Accra: Total wealth held in the city amounts to US$38 billion. Major sectors in the city include: basic materials, manufacturing and financial services.

For full list of 23 cities, please see full report attached.

KEY FINDINGS

* Top African country by average wealth per person: Mauritius at $32,700.

* Top African country by total wealth: South Africa at $722 billion.

* Top African city by total wealth: Johannesburg at $276 billion (includes Sandton).

* Most expensive African city for prime residential property: Cape Town at $6,100 per square meter.

* Safest countries in Africa: Mauritius, Botswana and Namibia.

PRIME PROPERTY TRENDS

Residential property normally constitutes between 30 and 35% of the net assets of an average African HNWI. Prime residential property is a popular asset class for Africa’s wealthy, especially luxury apartments, homes of residential estates and beachfront villas.

The most expensive cities for prime residential property in Africa are ranked below.

City (ranked in US$ per square metre):

• Cape Town (Bantry Bay and Clifton): $6 100

• Durban (Lagoon Drive in Umhlanga): $2 900

• Johannesburg (Central Sandton) : $2 800

• Nairobi: $1 900

• Marrakesh: $1 800

• Tangier: $1 800

• Mombasa: $1 700

• Luanda: $1 700

• Casablanca: $1 500

• Accra: $1 200

• Lagos: $1 100

• Abidjan: $1 000

• Alexandria: $1 000

• Maputo: $900

• Cairo: $900

• Kampala: $800

Note: Figures for Dec 2017. Refers to the US$ price of a prime 200-400 square meter apartment/villa in best part of each city/town. For our purposes Durban includes Umhlanga.

As reflected, South African cities dominate the above list. It should, however, be noted that residential prices in South Africa are coming under strain as the threat of land redistribution begins to sink in. The ongoing drought in Cape Town has also had a negative impact on prices.

LUXURY TRAVEL DESTINATIONS

South Africa is the main luxury tourist destination in Africa. Major SA destinations for wealthy people include: Kruger Park area, Cape Town, Umhlanga and Franschhoek.

Major destinations for them in the rest of Africa include: Mauritius, Seychelles, Marrakech in Morocco, Casablanca in Morocco, Cairo in

Egypt, the Serengeti in Tanzania, Sharm El Sheikh in Egypt, the Masai Mara in Kenya, Livingstone in Zambia and the Okavango Swamps in Botswana. Gorilla safaris in the Virunga Mountains and the Bwindi Forest (Uganda) are also popular.

Popular hotels for wealthy people visiting Africa include: La Mamounia in Morocco, the Four Seasons in Seychelles and the 12 Apostles Hotel & Spa in Cape Town.

Popular game lodges for them include: Ngorongoro Crater Lodge in Tanzania, the Royal Livingstone in Zambia, Cottar’s 1920s Safari Camp in Kenya and Singita in South Africa.

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