Investor confidence in the Cape Town Central Business District (CBD) has reached unprecedented levels, with the total value of property development exceeding R12.8 billion in 2025/26 - a 41 percent increase compared to 2024.
These findings were detailed in the 14th edition of the State of Cape Town Central City Report (SCCR) released by the CCID at the Portside Building in Cape Town on Wednesday, July 29.
CCID communications manager, Sharon Sorour-Morris, presented highlights from the report, including 29 property developments currently in the pipeline in the CBD.
Of these, eight have been completed, 14 are under construction, five are in the planning phase, and two are proposed.
A significant portion of this investment is dedicated to residential growth, with R6.2 billion focused on new residential properties.
High-profile projects, such as the R1.2 billion conversion of the Golden Acre office tower into 450 apartments and the R1.3 billion redevelopment of the former Christiaan Barnard Hospital site, underscore the shift toward mixed-use living.
The report also showed that the retail sector was performing exceptionally well, with 172 new retail outlets opening their doors in 2025.
The sector maintained an 88 percent occupancy rate, and the CCID’s Business Confidence Index for the final quarter of 2025 reported that 98 percent of retailers viewed trading conditions favourably - a marked improvement from the previous year.
Key sectors driving this growth include the legal, medical, and professions, alongside the creative economy and tourism.
The Cape Town CBD has the lowest office vacancy rate in South Africa, providing a stable environment for businesses.
CCID board chairman Rob Kane said that the extraordinary investment figures serve a dual purpose: they reflect existing market confidence and actively inspire further investment.
He attributed the CBD's success to 26 years of consistent efforts by the CCID to maintain a clean, safe, and attractive city centre, supported by the City of Cape Town’s leadership.
Kane said that strong investor confidence in the CBD was the result of 26 years of consistent effort by the CCID to create and maintain a safe, clean, more attractive city centre.
“Executive Mayor of Cape Town Geordin Hill-Lewis has also played an important role in driving confidence and helping to create an environment where investment can flourish,” he said.
Kane said that as the country’s most economically sound urban hub, the Cape Town CBD continued to defy trends seen in other city centres.
Key highlights:
- R12.8 Billion: Total value of new property investment (a 41% increase from 2024).
- 29 Developments: A massive pipeline of completed, current, and planned projects.
- Residential Boom: R6.2 billion dedicated to 16 new residential developments.
- Retail Success: 172 new retail outlets opened, with 98% of retailers reporting favourable trading conditions.
- Market Leader: The CBD continues to hold the lowest office vacancy rate in South Africa.
According to the CCID the Mother City’s heart is beating stronger than ever, cementing its status as the country’s most economically sound urban hub.
Follow Cape Community Media on TikTok and Instagram @ccmonlineza