Investor Confidence in Cape Town is Soaring
Cape Town ticks all the idyllic boxes: mountain views, beautiful beaches, a bustling restaurant scene, penguins, and gorgeous properties that are popping up everywhere - when looking at growth opportunities, it’s no wonder investors are seeing the potential the city has to offer.
The mere presence of construction cranes in a city skyline is often seen as a clear indication of economic growth, property development, and urban renewal. When there are numerous cranes dotting the skyline, it’s a sign of a bustling construction industry and an active property market. In Cape Town's Central Business District, for instance, there are currently about 20 visible cranes, which is a clear indication of its thriving economy and robust property development sector.
The city’s potential is inspiring investor confidence
The CCID's latest business confidence survey has revealed that not only are there more retail outlets in the Central City than before the onset of the pandemic, but confidence among retailers and commercial property owners has soared. This is despite the fragile state of the national economy as severe loadshedding takes its toll.
The survey found that over 3 000 businesses are now operating in the CBD, with over 1 200 of these being retail and entertainment businesses. This represents a significant increase from pre-pandemic levels, and is a testament to the confidence that investors, retailers and property owners have in the Central City as a thriving commercial hub.
Infrastructure worth investing in
One of the most significant advantages of Cape Town's infrastructure is its reliable power supply. While South Africa as a whole has been struggling with frequent power outages for several years, Cape Town's inner city has been largely shielded from these disruptions, thanks to the city's investment in its power infrastructure.
Some areas of the city are completely exempt from loadshedding, while others are one level of loadshedding behind the rest of the country. This has been possible through various initiatives which focus on developing sustainable energy solutions that reduce the city's dependence on the national power grid.
A diverse set of opportunities
One of the main trends in the CBD's commercial real estate market is the growing demand for co-working spaces. Start-ups and small businesses are looking for flexible, affordable office spaces that provide networking opportunities and access to business services. Landlords of Cape Town’s larger commercial buildings are reporting an influx of smaller financial and tech start-ups and waiting lists for co-working spaces. (Speaking of which, have you checked out this list of places to work remotely yet?).
Another trend is the conversion of commercial buildings into mixed-use or residential buildings. This shift reflects a change in the city's demographic and lifestyle preferences, with more people wanting to live, work, and play in the same area. Mixed-use developments combine commercial and residential spaces, creating a more vibrant and diverse urban environment. They are becoming increasingly popular in cities around the world, and Cape Town is no exception.
Key takeaway
The return of businesses to offices in Cape Town, combined with the steady influx of new residents to the growing residential property market, creates a supportive environment for the inner city’s retailers. The retailers are supported by a growing market of customers and patrons who are returning to the city center and taking advantage of the new residential options. The inner city is poised for retail growth and expansion, which will lead to even more economic activity and revitalisation.
TL;DR?
Cape Town development is booming, which clearly indicates that investors are putting their money where the mountains are.