These are the most expensive cities for property in Africa
AfrAsia Bank and New World Wealth recently published their Africa Wealth Report for 2018, highlighting the wealth on the continent.
The report provides a comprehensive wealth breakdown for 17 African countries and 23 African cities.
Total individual wealth held in Africa currently amounts to around $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),” the report’s authors said.
As part of the report, NWW also reviewed the wealthiest cities in Africa by total wealth held.
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$38 billion. Major sectors in the city include: basic materials, manufacturing and financial services.
The report noted that prime residential property is a popular asset class for Africa’s wealthy, especially luxury apartments, homes of residential estates and beachfront villas. The most expensive cities for prime residential property in Africa are ranked below.
South African cities dominate the above list. It should, however, be noted that residential prices in South Africa are coming under strain as the threat of land redistribution begins to sink in, New World Wealth said. The ongoing drought in Cape Town has also had a negative impact on prices, it said.
| City | US$ per square metre | Rand per square metre | |
|---|---|---|---|
| 1 | Cape Town (Bantry Bay and Clifton) | $6 100 | R86 500 |
| 2 | Durban (Lagoon Drive in Umhlanga) | $2 900 | R41 000 |
| 3 | Johannesburg (Central Sandton) | $2 800 | R39 600 |
| 4 | Nairobi | $1 900 | R27 000 |
| 5 | Marrakesh | $1 800 | R25 500 |
| 6 | Tangier | $1 800 | R25 500 |
| 7 | Mombasa | $1 700 | R24 000 |
| 8 | Luanda | $1 700 | R24 000 |
| 9 | Casablanca | $1 500 | R21 300 |
| 10 | Luanda | $1 200 | R17 000 |
| 11 | Lagos | $1 100 | R15 600 |
| 12 | Abidjan | $1 000 | R15 600 |
| 13 | Alexandria | $1 000 | R14 000 |
| 14 | Maputo | $900 | R14 000 |
| 15 | Cairo | $900 | R12 800 |
| 16 | Kampala | $800 | R11 400 |
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