Trends & Property Investment Opportunities
By Wesley Cowan, Managing Director for Galetti Auction Cape Town
Investment Opportunities
If last year’s indicators were anything to go by, then Cape Town is in for another record-breaking festive season.
In December 2023, Cape Town International Airport saw an 18% increase in international visitors compared to the previous year. This growth continued into early 2024 with a 13% rise in tourist arrivals from January to April, outpacing 2019’s numbers by over 55,000 visitors.
Reflecting its popularity, Cape Town was again named Africa’s Leading City Destination at the World Travel Awards in October 2024 for the fourth consecutive year.
This recognition further highlights Cape Town’s potential as a prime location for property investment opportunities, particularly as global interest in the city continues to grow.
One in 23 people in Cape Town work in the tourism industry, showing how important it is for the local economy (Stats SA).
With this in mind, here’s our top three predicted trends for the festive season:
Growth in Short Term Rentals
Cape Town’s Airbnb market ranks higher than destinations like Sydney, Barcelona and Amsterdam, with a median occupancy rate of 71%.
Visitors prefer staying in local-style accommodations and immersing themselves in Cape Town’s lifestyle rather than booking into big hotels. This trend could lead to more buy-to-let purchases, with some sellers choosing auctions to drive competition and increase selling prices.
We could also see demand from both local and global brands looking to expand in Cape Town, boosting the need for short-term rentals and more office space.
With office space in short supply, we may also see more suburban office spaces being set up in areas like Constantia, Claremont and Newlands as demand rises.
Rise of Experiential Tourism
Cape Town is popular for luxury, sustainable, adventure and experiential tourism.
Travellers are looking for immersive experiences that let them connect with local culture, like the new Durbanville Wine Safari or Uber Safari, which offers rides from Cape Town to nearby safari spots.
In addition to major airlines like KLM, Lufthansa and British Airways increasing flights to Cape Town, United Airlines has recently expanded its direct routes from the US to Cape Town. Meanwhile, the newly launched Norse Atlantic is offering affordable direct flights from London, making it even easier for international travellers to visit and tapping into the growing demand.
Cruise Sector’s Impact
The cruise industry added R1.32 billion to Cape Town’s economy in the 2023/24 season, creating nearly 2,000 jobs in tourism, retail and hospitality.
Demand from international tourists keeps the sector strong, with travel companies promoting packages to further boost Cape Town’s economy.
We are excited to see how demand over the festive season translates into sales in the New Year!