Cape Town’s clean audit and tourism boom favor the commercial property market

With Cape Town having once again received a clean audit from the Auditor General – for 2022/2023, coupled with the City’s close to R7 billion in infrastructure investment, and attracting over R3.5 billion in property investments, the Mother City is flying high on the radar of investors, tourists and semigrants alike.

Over many years, Cape Town has received numerous accolades, most recently including Best Worldwide City in the 2023 Telegraph Travel Awards – for the eighth consecutive year, and Africa’s Leading City Destination 2023 in the World Travel Awards Africa, among others.

“It’s no surprise that Cape Town saw a record-breaking influx of over 317 000 international passengers in December (2023), providing a welcome boost to the local economy,” says Marcus Te Vaarwerk, a director of Swindon Property. “This tourism boom, coupled with a clean bill of health from the Auditor General and significant investment in Cape Town, presents a meaningful opportunity for the city’s commercial and industrial real estate market, fostering increased market sentiment and generating heightened interest among developers, investors and businesses.

“By leveraging this momentum and addressing potential challenges, generally achieving less severe loadshedding than other areas, the city can capitalise on a thriving and sustainable real estate sector that benefits investors, developers, and the broader community.”

Increased Demand for Space

Te Vaarwerk says with the rising number of visitors and with international arrivals set to continue in coming winter months, existing hotels are likely to witness high occupancy rates, potentially leading to expansion plans or new hotel developments.

“This translates into increased demand for land, construction materials, and skilled labour in the hospitality sector, while the retail and restaurant industry is expected to benefit, with more establishments likely to emerge in popular tourist areas, driving demand for commercial spaces and with the potential to revitalise underutilised

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