WORDS: HOMEFRONT REPORTER :: PHOTOS: SUPPLIED
The evolving wealth landscape impacts property markets across the globe and New World Wealth pinpoints Namibia as one emerging home for high-net-worth individuals.
Namibia is positioned to become Africa’s next big millionaire hotspot. This is according to wealth intelligence firm New World Wealth, which reviewed the country’s status following this year’s “Africa Wealth Report”.
New World Wealth defines “millionaires” as high-net-worth individuals with investable wealth of $1m or more. There are about 2,150 such individuals currently living in Namibia (as at June 2023) and this number is expected to rise to more than 10,000 by 2040.
Key drivers of this future growth are believed to be Namibia’s safety and security when compared to its neighbours, low tax rates and well-developed banking system. The top rate of income tax is a relatively modest 37% and, perhaps most notably, there is no estate duty or capital gains tax other than profits on the sale of mining and petroleum licences or rights, and the transfer of any share or interest in a company owning a mineral or petroleum licence or right.
The Namibian dollar is also pegged to the South African rand, which means that the country is reasonably stable economically, as the rand is the most heavily traded currency in Africa and one of the world’s leading emerging market currencies.
New World Wealth also found that the peg also creates a convenience factor for expats who move frequently between the two countries. The area’s abundant natural resources, low population density and strong energy and transport infrastructure also contribute to its appeal.
Klein Windhoek, Namibia, R10.5m. Marketed by Pam Golding Properties
Moneyed suburbs
Namibia is home to various affluent residential suburbs that appeal to wealthy buyers. These include Ludwigsdorf and Klein Windhoek (both in Windhoek), Vogelstrand (in Swakopmund) and Langstrand (near Walvis Bay). There are also a growing number of luxury lifestyle estates in the country such as Finkenstein Estate, Am Weinberg Estate and the upcoming President’s Links Estate.
Desirable features
Namibia’s greatest advantage lies in its low population density. It has one of the lowest population densities in the world, with only three people per square kilometre, according to the latest World Bank data.
New World Wealth attributes “the rise of Namibia” to the benefits commonly linked to low population figures. These countries tend to be wealthier on a wealth per capita basis than densely populated countries.
Notably, Namibia ranks as the third wealthiest country in Africa on a wealth per capita basis, after Mauritius and SA. Wealth per capita (average wealth per person) is arguably the best indicator of the true financial health of an economy, so this is a key factor. Having a sparse population allows for more wild open spaces and gives wildlife the opportunity to thrive, which improves the quality of life for locals and boosts ecotourism opportunities. More than 20% of Namibia is protected by national parks, making it one of the most ecologically friendly countries on earth.
Klein Windhoek, Namibia, R16m. Marketed by Pam Golding Properties
Investment portfolios
In July, Seeff Property Group affirmed that there are compelling reasons for investing in real estate in Namibia. Maria Esterhuysen, licensee for Seeff Namibia said that, “For investors seeking to diversify their investment portfolio and explore new horizons, Namibia emerges as an enticing destination for real estate investment. With its breathtaking coastal beauty, stable political climate, thriving economy, tax advantages and favourable financing options, Namibia offers a compelling proposition.”
According to Seeff, Namibia also has a healthy rental market which offers attractive opportunities for investors seeking consistent income streams. Rental demand remains high, driven by an influx of young professionals, retirees and families. Buy-to-let investments can provide a stable income source, allowing investors to benefit from rental yields and potential capital appreciation.
Namibia offers exceptional value for money when it comes to property prices. Compared to other African countries and some global markets, real estate in Namibia maintains its affordability.
