Cape Town’s central business district (CBD) stood out yet again in 2021, attracting property investments worth a total R5.7bn, as the city continued to develop and grow.
Rob Kane, Cape Town Central City Improvement (CCID) board chair and CEO of Boxwood Property Fund said the city was tenacious even during the continued Covid-19 pandemic.
He referred to the 10th edition of the State of Cape Town Central City Report 2021 — A Year in Review, which was released on Wednesday.
“Despite global and local economic difficulties experienced by many sectors, the Cape Town inner city has proved to be resilient in the face of economic hardship and uncertainty caused by the pandemic,” he said.
The CBD attracted 28 investments, including 13 completed developments or redevelopments valued at more than R2.5bn, 12 projects which were under construction worth R1.7bn and three projects in planning phases worth R1.5bn.
New developments and redevelopments also included five hotels: The Rockefeller, Hotel Sky, BlackBrick Cape Town, Old Bank Hotel and The Capital 15 on Orange.
The value of property in the CBD grew from R12.2bn in 2016/2017 to R43.8bn in 2018/2019.
The Cape Town CBD accounted for the largest share of offices in the Cape metro, with vacancies rising to 16.1% from 14.6% in 2020, exceeding the South African Property Owners’ Association (Sapoa) national vacancy rate of 16%.
Many A-grade offices had come onto the market as occupiers were still working from home. Medium sized businesses were seeking less space.
“The Cape Town CBD remains one of the country’s top property investment destinations, and we remain confident of its resilient economy,” said Kane.