Gauteng’s deteriorating infrastructure, particularly in Johannesburg, is increasingly pushing wealthy residents to relocate to areas that offer a higher quality of life.
The City of Johannesburg’s draft medium term budget for 2025/26, released last month, proposes only modest increases for struggling service units.
City Power and Johannesburg Water are each set to receive a 13 percent budget increase, while the Johannesburg Roads Agency is allocated just 2 percent more.
These adjustments come despite widespread complaints over persistent water and electricity outages that often last for several days, along with crumbling roads filled with potholes large enough to cause serious vehicle damage.
Although infrastructure development remains a stated priority for the city, wealth migration data paints a worrying picture. Henley and Partners’ Africa Wealth Report for 2025 reveals a sharp decline in high net worth individuals residing in Johannesburg, with numbers dropping by 35 percent in the past year.
Pretoria also recorded a 15 percent decrease. In contrast, Cape Town experienced a 33 percent rise in wealthy residents, while the Winelands and Garden Route surged by 42 percent and 30 percent respectively.
Industry experts link the exodus to declining living standards in Johannesburg and Pretoria, citing failing utilities, poor municipal management, unreliable transport systems, and persistent crime.
These challenges have stalled prime property growth in areas such as central Sandton, while Cape Town has experienced a boom in luxury real estate supported by strong demand and new upmarket developments.
In Johannesburg, new residential projects are largely limited to the conversion of underused office spaces into rental apartments.
Despite these setbacks, Johannesburg retains important advantages. The city is known for its favourable climate, offers comparatively affordable luxury property, and continues to host many of South Africa’s blue chip companies. It also serves as a strategic hub for investors seeking entry into Africa’s growing markets.
Analysts suggest that if local authorities can sustain and expand ongoing renewal efforts, Johannesburg may still manage to hold on to its position as Africa’s wealthiest city.
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