There is sustained investor confidence in the Cape Town central business district, and Cape Town continues to have a relatively low office vacancy rate, compared with other major cities in the country.
With a forward-thinking local government dedicated to a green economy and climate resilience, the Western Cape’s real estate, property and construction sector offers many investment opportunities. The national government’s goal to double tourism numbers to 21-million by 2030 will also continue to boost the sector.
New property developments worth more than R950-million (US$65-million) were recorded in central Cape Town in 2018, according to the Cape Town Central City Improvement District’s The State of Cape Town Central City Report 2018.
The value of property in the central city soared by nearly 40% from R30.63-billion in 2016/17 to R42.86-billion in 2018/19, with 39 individual new developments (worth more than R13.5-billion) either completed, under construction or in the pipeline, the report states. There have also been six new developments worth more than R968-million in 2019.
Thirty-nine new developments (worth more than R13.5-billion) were either recently completed, under construction or in the pipeline in the Cape Town city centre in 2018, with at least six new developments, worth more than R968-million, reported in 2019, according to The State of Cape Town Central City Report 2018.
Three of the six new developments were hotels that have already opened – the Gorgeous George and Labotessa luxury hotels and the three-star property Signature Lux Hotel.
Two new residential developments – The Duke and Fleetway House – are in the pipeline, while a third – Foreshore Place – will be a mixed-use development with both commercial and residential space.
Adding these new developments (and an estimated R130-million for the redevelopment of the old City Park Hospital building) to the estimate of recently completed, under construction, planned and proposed developments increases the total value of new developments to more than R14-billion.
The city boasts some of the highest-valued property in South Africa, with the V&A Waterfront yacht basin residential property and Clifton topping the list. Major international hotel groups, such as the Marriott, have also invested in property in Cape Town in recent years.
Considering the sustained high investor confidence in the Cape Town central business district, the city continues to offer outstanding opportunities.
But investors are also looking at fast-growing Cape Winelands towns such as Stellenbosch, Franschhoek and Paarl.
Stellenbosch aims to transition into a sustainable smart town by 2020, while the town of Paarl has been upgrading its central business district and is planning to create a mixed-use waterfront development on the Berg River, including a hotel, restaurants, office blocks and a sports science institute.
The third-largest municipality in the Western Cape, the Garden Route town of George has also evolved into a business services destination, with the value of property in its central business district amounting to more than R1-billion, and an increased demand for commercial space.
Through its #InvestGeorge initiative, George provides financial incentives, including discounts on rates and services to approved investors on the lease or sale of council-owned land.
The growth of the Western Cape economy and the all-important creation of more jobs is the engine that drives the work of the Western Cape Government. But that engine requires a physical space; a place to set up shop; to provide offices and factory space; on which to build homes for its employees. This physical space is property, and it is often the foundation, quite literally, on which investment is built. This publication, produced by various divisions within Wesgro, is an analytical introduction into the opportunities to be found in the Western Cape across the commercial, retail, industrial and residential property sectors. Learn more about our property report in this publication:
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