Don’t be surprised if South Africa’s next wave of dollar millionaires emerge from Durban as research shows that it is the region producing millionaires at the fastest rate compared to other cities in the country.
With a total of 2 700 people with a net worth of over $1 million (R13,9 million) and one dollar billionaire (R13,9 billion), Durban is expected – in the near future – to give Johannesburg and Cape Town a run for their money when it comes to bragging rights around which city houses the most super wealthy individuals.
This is according to global research consultancy New World Wealth in its latest World Cities report.
READ MORE: City hotspots for Africa’s wealthiest
Currently, Durban’s HNWI hold a collective net worth of $45 billion (R627,4 billion).
New World Wealth head of research Andrew Amoils says the strong growth in the number of millionaires in Durban has been “fuelled by massive millionaire growth in the Umhlanga and Lu Lucia area, especially among the Indian community”.
“The north coast of KwaZulu-Natal (above Durban) is also becoming increasingly popular for the super rich, especially in the second home market,” he says.
Areas like the popular holiday towns of Ballito and Zinkwazi have become new hotspots for investment among the country’s super-wealthy.
The report also reveals that the city’s wealthy have made their money from the healthcare, construction, retail and transport sectors.
Johannesburg remains the city that is home to most dollar millionaires in the country with 17 600 millionaires and two billionaires with a combined net worth of $243 billion (R3,3 trillion), with the HNWI’s predominantly making their money through the financial services, professional services like law firms, construction, telecommunications and basic materials.
Cape Town houses 7 400 dollar millionaires with a combined wealth base of $130 billion (R1,8 trillion).
READ MORE: The big Durban millionaire boom
The major sectors driving their wealth creation are real estate, financial services through fund management, retail and tourism.
As a whole, South Africa is home to 40 400 dollar millionaires and seven dollar billionaires with a combined net worth of $580 billion (R8 trillion), with forecasts projecting a 40% growth in the number of HNWI over the next decade.
Amoils adds that the Western Cape towns of Paarl, Franschoek, Stellenbosch and Garden Route towns (George, Knysna, Plettenberg Bay and the Wilderness) are also emerging as regions the country’s super wealthy are migrating to, particularly to retire at the growing number of exclusive gold and lifestyle estates.
Paarl, Franschoek and Stellenbosch is currently home to 2 500 dollar millionaires with a combined net worth of $40 billion (R557,7 billion), while the Garden Route towns is also home to 2 500 dollar millionaires with a total wealth of $38 billion (R529,4 billion).