COMMERCIAL
The latest edition of the “ State of Cape Town Central City Report 2023 – A Year in Review ” ( SCCR ), published by the Cape Town Central City Improvement District ( CCID ), highlights the significant rebound of the CBD ’ s economy . The report reveals that 30 property developments were recorded last year , with nine completed ( valued at over R1.347 billion ), eight under construction ( over R2.228 billion ), ten in planning ( over R2.610 billion ), and three proposed ( more than R1.100 billion ). Residential properties accounted for 40 % of these developments , reflecting a sustained demand for inner-city living .
Rob Kane , CCID board chairperson , emphasizes that the Cape Town CBD has notably rebounded from the pandemic , a trend that continued strongly into 2023 . The total official value of property in the CBD has increased from R12.2 billion in 2016 / 17 to R42.8 billion in 2023 . This growth in property values underscores the area ’ s attractiveness to investors .
Beyond the construction sector , other critical economic sectors such as business tourism , hospitality , eventing , and retail have also shown strong performance . The number of business entities in the CBD rose by 186 , reaching 3,302 in 2023 . The sectors experiencing growth include retail , ICT , finance , and artistic studios . Retail , in particular , demonstrated resilience , with 62 new outlets opening and a high confidence level among retailers , with 93 % satisfied with current conditions .
Despite economic challenges and power outages , the retail space in the CBD faced only a slight decrease in total occupied space , with a vacancy rate of 6.0 %, up from 4.9 % in 2022 . The increase in vacancies is partly due to redevelopment projects like The Mutual on Strand Street .
The commercial sector also saw positive developments , with a decrease in office space vacancy rates to 10.2 % by the end of 2023 , down from 13.3 % in 2022 and 16.1 % in 2021 . The CBD retains the largest share of office space in Cape Town , representing 39.4 % of the total .
The SCCR 2023 offers unique insights into property investment , including a map detailing the locations of completed , ongoing , and planned projects . It also provides an economic overview of resilient sectors , visitor statistics , and an assessment of the factors affecting global downtowns . The report includes a residential survey that explores why people choose to live in the CBD .
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76 REI MAGAZINE SEPTEMBER 2024