The good news for property investors and struggling retailers alike in Cape Town is that commercial property in Cape Town is continuing to flourish in the face of the country’s tough economic climate. Despite political instability sending the Rand on a rollercoaster this year, Cape Town’s CBD recently received R2 billion worth of investments in property developments. What does this mean for property and business in the CBD?
New investments are a boon to inner city businesses
Rob Kane, the chairman of the Cape Town Central City Improvement District (CCID), recently outlined the benefits of five new inner city developments that are currently in the planning phase. Kane suggested the bonus for inner city commercial property leasers and retailers, as ‘every cent spent on improvement means increased footfall into the central city.’
Kane also highlighted how Bree Street’s development as a business hub has transformed the street, bringing a surge of traffic to local businesses.
Major developments are on the cards
One of the newer commercial developments scheduled for Central Cape Town is Zero2ONE, which will be the tallest building in the city once complete (148 metres). The CCID’s communications manager, Carola Koblitz, has told SA Property Insider that there are more than R1.1 billion’s worth of new developments at the proposal stage in Cape Town. Whatever the national economic situation, one thing is clear – property in Cape Town continues to thrive.
Areas surrounding the inner city named hottest investment potential
Even while development in Cape Town’s CBD is ongoing, surrounding areas are also being hailed as top property investment options. Notwithstanding the continued growth of Century City, Business Tech recently named Goodwood and nearby neighbourhoods including Bothasig, Edgemead and Monte Vista as sound investment options due to (among other perks) their close proximity to the CBD.
Value-adding large-scale developments underway
Lightstone has recently said that Cape Town’s CBD remains the top performing metro property market in the country. Part of this (according to Sandra Gordon, Pam Golding’s research analyst) is due to people continuing to flock to the Mother City. Other large-scale developments underway will certainly add value. These include an R832 million expansion of the Cape Town International Convention Centre as well as a R33 million Netcare Unit at the Netcare Christiaan Barnard Memorial Hospital on the Foreshore. The gradual city-wide upgrade to fibre internet connectivity has further stoked investor confidence in the city.