Cape Town Property Trends
Category Advice
With our office located in Cape Town's CBD, we enjoy exploring our micro environment. Our managed-portfolio includes residential and commercial properties, located across various Cape Town nodes. With this exposure to the market, we'd like to share some insights we've observed over the last few months.
Decreasing Office Vacancies
Cape Town's CBD is seeing a significant decrease in office vacancies as companies encourage their employees to return to the office. Also contributing to decreasing office vacancies is the conversion of B and C-grade office buildings into micro apartments aimed at the short-term letting market. This resurgence of attracting people back to Cape Town's CBD is supported by the increasing popularity of new retail venues and eateries in the city.
Semigration & Its Impact
Semigration remains a key driver of Cape Town's property market. The city's appealing lifestyle, well-managed urban environment, and diverse offerings attract South Africans from other regions, leading to increased demand and rising property prices.
Demand for Short-Term Stay Options
There is a growing focus on short-term stay offerings, including hotels and aparthotels. Developments like Habitat at 132 Adderley and The Rubik at 17 Loop Street cater to tourists and business travellers, contributing to the city's vibrant property market.
First-Time Buyer Interest
Expectations of declining interest rates may spur a surge in activity from first-time buyers. While the economy is fairly stable, we hope to see real economic growth which will attract investors and create a favourable environment for new entrants to the property market.
Luxury Rentals Demand
The luxury rental market in Cape Town is booming, with high-end properties attracting significant interest. Rental prices for luxury homes have seen substantial increases, driven by demand from both local and international clients.
Commercial & Industrial Growth
Despite challenges in the retail sector, Cape Town's industrial properties are performing well, with low vacancy rates and strong growth. Industrial properties remain the best-performing property type in 2024.
Whether you're a first-time buyer or a seasoned investor, understanding these trends can help you navigate the market and make informed decisions.
Author: Nina Vass