Africa’s Luxury Real Estate Market Sparkles For Cash-Flush Individuals

Africa’s Luxury Real Estate Market Sparkles For Cash-Flush Individuals

From  moneyweb.co.za

The rapid growth of ultra-high net worth individuals (UHNWI) over the next ten years will have a positive spin-off for Africa’s luxury residential property sector, with the allocation of more capital into the market expected.

According to Knight Frank’s 2015 Wealth Report, UHNWI who own at least $30 million (R371 million) in assets are expected to increase by 59% in Africa compared with 34% globally.

It is expected that the growing number of wealthy individuals will allocate more capital to property investments outside of their own countries.

The report which surveys 500 private bankers and global wealth advisers who represent over 10 000 UHNWI with a combined wealth of $1.7 trillion (R21 trillion), notes that the African continent is showing a strong investment case.

This is on the back of strong investment opportunities in the luxury property market.

Just on the performance of luxury properties, editor of the Wealth Report Andrew Shirley, says global properties showed flat growth of 2%. The African continent showed “respectable” growth of 6.5%. On an individual country basis, house price growth in Nairobi, Kenya, was flat due to the oversupply of properties.

Shirley says South Africa has shown strong performance due to the weak rand, making property attractive among investors.

South Africa has received a vote of confidence, as it is the only African country to feature in Knight Frank’s top 40 most important cities for UHNWI.

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Johannesburg has reached the 28th spot, trumping cities such as Washington DC, Istanbul, Berlin, Kuala Lumpur, Boston and São Paulo.

“Johannesburg is the wealth hub of Africa and wealth in the city will grow substantially in the next ten years,” he says.

Cape Town has clinched the 36th spot eclipsing Tel Aviv, Auckland, Buenos Aires and Rio de Janeiro.
Properties that cash-flush individuals would have a taste for would include Cape Town’s top selling property for about R44 million, situated in Bantry Bay.

Read more at moneyweb.co.za