Millionaire Migration: US-dollar millionaires are flocking to this small South African town

What This Means for the Real Estate Market and How Group7 Properties Can Help You

South Africa’s Whale Coast has quietly become one of Africa’s fastest-growing millionaire hotspots, with Hermanus emerging as a particularly attractive town for wealthy property buyers.

This is according to the latest Africa Wealth Report, published annually by international wealth advisory firm Henley & Partners in collaboration with New World Wealth. The report highlighted that Hermanus and its surrounding areas are drawing high-net-worth individuals faster than any other part of the country.

The report showed that private wealth across Africa continues to expand despite global headwinds. The continent is now home to 25 billionaires, 348 centi-millionaires, and 122,500 millionaires.

South Africa remains the largest wealth market, with 41,100 millionaires, including 112 centi-millionaires and eight billionaires.

This accounts for 34% of Africa’s millionaire population, roughly equal to the combined total of the next five wealthiest countries on the continent.

Among the fastest-growing wealth hubs, South Africa’s Whale Coast, which lies between Cape Town and the Garden Route, has seen the biggest rise in millionaires and centi-millionaires, with an increase of 50%.

“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.

The Hermanus suburbs of Voëlklip, Kwaaiwater, Eastcliff, and Fernkloof Estate are especially affluent,” it added.

The Whale Coast now has around 1,700 millionaires and seven centi-millionaires, with Hermanus leading the growth. Known globally as a whale-watching destination, Hermanus is a seaside town southeast of Cape Town that combines coastal charm with an increasingly sophisticated lifestyle offering. Its beaches, like Voëlklip and Grotto, overlooking Walker Bay, add to the appeal.

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 the city only a two-hour drive away, wealthy buyers can enjoy seaside living while still having access to urban amenities.

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. This influx of wealthy buyers has transformed the property market. Over the past few years, sales of homes priced above R5 million have more than doubled.

Exclusive areas such as Kwaaiwater and Voëlklip have recorded transactions of over R20 million, with rare properties recently fetching more than R40 million. We are now seeing estates that could top the R100 million mark. Lightstone data confirmed Hermanus boasts the highest volume and value of transactions among key smaller coastal towns.

Sales of houses priced over R5 million have more than doubled over the last five years, from 57 transactions in 2019 to 132. The town has also become a serious competitor in the ultra-luxury category, with 26 residential homes selling for more than R20 million over the past five years. A notable driver of this surge is semigration. Many affluent South Africans, particularly from Gauteng, are relocating or buying holiday homes in Hermanus. New private schools such as Curro and Generation Schools, a regional mall, and advanced healthcare facilities are examples of how the town is evolving to meet the needs of its growing high-net-worth community.

Looking ahead, Hermanus and the wider Whale Coast seem set for even more growth. Andrew Amoils, Head of Research at New World Wealth, said lifestyle destinations such as the Whale Coast, the Cape Winelands, and Marrakech are expected to lead the next wave of millionaire migration into Africa.

“The increase in Africa’s millionaire population will likely be led by lifestyle destinations such as the Whale Coast, Cape Winelands, and Marrakech,” Amoils explained.

The main industries expected to drive 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 said.

At Group7, we understand these shifts. As South Africa’s property experts, we help our clients position themselves at the forefront of emerging wealth hubs. The Whale Coast is just one example of how lifestyle-driven migration is rewriting South Africa’s property map and creating significant opportunities for savvy investors.