How They’ve Grown: South African Millionaires

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Written by Dana Sanchez

South Africa ranks No. 36 in the world for super-rich people, with 46,500 millionaires, an 82 percent increase over 10 years ago, according to commercial & residential property group, Knight Frank’s 2016 Wealth Report.

By comparison, the U.S. has the most wealthy people in the world, with 4.2 million millionaires, BusinessTech reported.

Half of South Africa’s millionaires live in Johannesburg, the richest city in South Africa, with 23,400 dollar millionaires, 1,030 multi-millionaires, and 320 ultra high net worth individuals.

You earn the UHNWI when you have a net worth of $30 million US, according to the report.

Luxury brands such as Zegna, Hugo Boss and Porsch have been opening outlets in sub-Saharan Africa to cater to the rich, CNN reported. Italian menswear label Ermenegildo Zegna has invested heavily in Africa over recent years.

“Despite the numerous challenges to overcome in the region, other luxury brands are certain to follown,” said Fflur Roberts, head of luxury goods at Euromonitor International. “Prada, for example, has already confirmed plans to open in Angola.”

Cape Town has 8,900 dollar millionaires, 390 multi-millionaires and 121 UHNWIs, according to Knight Frank’s 2016 Wealth Report.

South Africa also has 6 billionaires and 87 centi-millionaires.

Cape Town’s millionaire population ebbs and flows with the seasons. During December, super wealthy people flock to the city for vacations.

Knight Frank’s data shows that Cape Town sees a peak multi-millionaire population of 2,690 people over December, compared to its lowest month (June), where only 380 multi-millionaires are present.

A reason for this is that Cape Town is a popular place to have a second home. It’s relatively affordable.

Here’s how Cape Town compared to other cities for prime property rate in 2015:

$1 million in Cape Town could buy 255 square meters (2744 square feet) of prime residential property at the end of 2015, compared to 203 square meters (2185.07 square feet) in Sao Paulo, 99 square meters (1,065 square feet) in Mumbai or 96 square meters (1,033 square feet) in Berlin.

Wealthy individuals can get 10 times more space in Cape Town than New York for the same money, the report said.