Six out of 10 Africa’s Ultra-High-Net-Worth Individuals grew their wealth in 2022, despite the economic challenges recorded in the year, Knight Frank’s latest wealth research has said.
In a statement, it said the drivers of the performance were real estate, currency trades, market timing and, for the first time in more than a decade, the return on cash.
It stated, “Using data from Knight Frank’s global annual ‘Attitudes Survey’ of more than 500 private bankers, wealth advisors and family offices conducted in November 2022, combined with in-depth conversations with industry experts, the study also reveals that those that saw their wealth shrink, attributed it to equity markets, financial markets more broadly and interest rate moves.
“However, with disruption comes opportunity and the study found that close to three quarters of survey respondents expect their clients’ wealth in Africa to increase marginally (23 per cent) or significantly (50 per cent) in 2023. The survey also showed that 14 per cent of UHNWIs in Africa are planning to invest directly in commercial property in 2023, and another 13 per cent indirectly through REITs or debt funding.
“On the global scene, real estate (46 per cent), tech (33 per cent) and equity markets (28 per cent) were cited as the top opportunities in 2023 for UHNWIs to create and grow their wealth.”
Partner of Residential Research at Knight Frank, Flora Harley, said, “Real estate was the top cited opportunity among 46 per cent of Knight Frank’s survey respondents, whether for its attributes as an inflation hedge or due to the benefits of diversification.
“Many panellists highlighted the opportunity to secure enhanced return profiles a key advantage. Plus, when investing directly, real estate enables greater control and value-add opportunities.
“One in 10 respondents specifically cited looking for attractive valuations and distressed opportunities. That trend isn’t limited to real estate either: equities and the technology sector were tipped by around a third of our respondents.”