South Africa’s Whale Coast has quietly become one of Africa’s fastest-growing wealth hubs, with Hermanus standing out as a prime magnet for high-net-worth property buyers.
This trend is highlighted in the latest Africa Wealth Report, released by international wealth advisory firm Henley & Partners in collaboration with New World Wealth.
The report revealed that Hermanus and its surrounding areas are attracting wealthy individuals faster than any other part of South Africa.
It noted that private wealth across Africa continues to grow despite global challenges, with the continent now home to 25 billionaires, 348 centi-millionaires, and 122,500 millionaires.
South Africa remains Africa’s largest wealth market, accounting for 41,100 millionaires, including 112 centi-millionaires and eight billionaires.
This represents 34% of the continent’s millionaire population, roughly equal to the combined total of the next five wealthiest countries in Africa.
Among the fastest-growing wealth hotspots, the Whale Coast, which stretches between Cape Town and the Garden Route, has seen the largest increase, recording a 50% rise in millionaires and centi-millionaires.
“South Africa’s Whale Coast includes the wealth hotspots of Hermanus, Rooi Els, and Betty’s Bay, and is South Africa’s fastest growing region for high-net-worth individuals,” the report noted.
It further stated, “The Hermanus suburbs of Voëlklip, Kwaaiwater, Eastcliff, and Fernkloof Estate are especially affluent.”
The Whale Coast now counts about 1,700 millionaires and seven centi-millionaires, with Hermanus leading the surge.
Known globally for whale-watching, Hermanus combines coastal charm with an increasingly sophisticated lifestyle.
Its beaches, such as Voëlklip and Grotto overlooking Walker Bay, add to its appeal as a seaside haven, according to Business Tech US-dollar millionaires are flocking to this small South African town – BusinessTech.
Paul Kruger, licensee for Seeff Hermanus, explained the town’s growing popularity among wealthy buyers: “Hermanus has become a prime destination for second homes and development, largely due to its stunning coastal location, weather, lifestyle, and proximity to Cape Town.”
With Cape Town just a two-hour drive away, he noted, wealthy buyers can enjoy seaside living without losing access to urban amenities.
Kruger added, “High-net-worth buyers and investors are increasingly drawn to the area.
A recent New World Wealth report indicated a 25% increase in high-net-worth individuals migrating to the town, surpassing growth in other Western Cape regions.”
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This migration has fueled a significant property boom. Sales of homes priced above R5 million have more than doubled in recent years.
Exclusive neighborhoods such as Kwaaiwater and Voëlklip have recorded sales exceeding R20 million, while rare properties have recently sold for more than R40 million.
“We are now seeing estates that could top the R100 million mark,” Kruger said.
Lightstone data confirms Hermanus has the highest volume and value of transactions among smaller coastal towns.
Kruger pointed out, “Sales of houses priced over R5 million have more than doubled over the last five years, from 57 transactions in 2019 to 132.”
The ultra-luxury market has also expanded, with 26 homes selling for over R20 million in the past five years.
One major driver of this shift is semigration, as many affluent South Africans, especially from Gauteng, are relocating or buying holiday homes in Hermanus.
The town has also evolved to support its growing high-net-worth community, with new private schools such as Curro and Generation Schools, a regional mall, and advanced healthcare facilities.
Looking ahead, Hermanus and the Whale Coast are poised for further expansion.
Andrew Amoils, Head of Research at New World Wealth, emphasized, “The increase in Africa’s millionaire population will likely be led by lifestyle destinations such as the Whale Coast, Cape Winelands, and Marrakech.”
He added that industries expected to fuel this growth include fintech, eco-tourism, software development, green tech, e-commerce, rare metals mining, healthcare, biotech, media, entertainment, and wealth management.
“With the EU and UK becoming less attractive among the global jet-set, there is potential for Africa to emerge as a major destination for wealthy entrepreneurs,” Amoils concluded.
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Image Credit: Bloomberg
