Cape Town’s busy and bustling CBD is showing no signs of slowing down as a recent report by the Cape Town Central City improvement District (CCID) shows that the area’s retail and property market is flourishing in spite of the straining economy.
CCID has confirmed that retail occupancy has remained at a steady 93% since 2017 and continued steadily, attracting investors in commercial and retail property sectors.
In total, 1 038 out of the 3 091 businesses in the Central City are retail venues while the number of food outlets continues to climb steadily in order to meet the demand.
In 2017, the CBD was home to 114 food retailers. This number increased to 153 by 2018, with the number of coffee shops going from 45 to 58 and takeaway spots from 61 to 76.
Notes Rob Kane, chairman of the CCID, “This reflects a vibrant CBD economy that is geared to support the downtown lifestyle and as a result, a growing number of people are living and working in the Central City. It can also be attributed to the trend towards smaller apartments, so-called ‘micro-living’, targeted at students and young professionals which makes it more likely for residents to get a bite to eat in a restaurant rather than cook meals at home.”
Cape Town’s East City Precinct has also shown substantial growth, welcoming several new retail developments and entertainment refurbishments last year alone. Furthermore, in coming years locals will see 39 new developments currently in the pipeline for the area.
One of the most significant findings of The State of Central City Report for 2018 are that the overall property value in the CBD has increased from R30.628-billion in 2016 and 2017 to R42.860-billion in 2018 and 2019, a clear sign that property prices are sure to keep climbing in coming years.
Apartment prices in CBD have increased by 97.6% in the last five years.
“While the overall value of properties is likely to change during the City of Cape Town’s valuation objection phase, we are heartened by the increase in gross valuation for the CBD as the overall picture shows investors are confident in the development potential of downtown Cape Town,” says Kane.
The recent State of Central City Report confirms Cape Town as one of the most resilient cities in the world with a number of commitments like water security and carbon footprint reductions being front of mind while still maintaining its title as Africa’s tech hub.
Cape Town has proven its ability to adapt and in site of all the challenges it has faced it is still thriving, growing and improving.