Cape Town central business received a surge in investment as the central business district has attracted R12.8-billion in new property investment.
The State of Cape Town Central City Report 2025 – A Year in Review found that the value developments in the pipeline increased by 41% from R9-billion in the previous year.
Rob Kane, chairperson of the Cape Town Central City Improvement District board and chief executive of Boxwood Property Fund, said the scale of development reflected growing confidence in the city’s future.
‘Numbers inspire investor confidence’
“It’s astonishing to see development of this magnitude but the real story is that these numbers not only reflect, but also inspire, investor confidence. And, more importantly, what happens when confidence becomes concentrated in one place,” said Kane.
Kane said the CBD was also attracting increasing interest from international investors and developers from Gauteng seeking opportunities in Cape Town’s resilient property market.
A total of 29 developments were either completed, under construction, planned or proposed across the CBD. These spaces are dominated by R6.2-billion worth of residential projects as demand grows in the inner city.
Surge in residential property prices
However, residential property prices continued to climb, with the median price of sectional title units increasing 5.4% to R1.95 million, extending a 53.5% rise since 2020.
The report also shows an increase in affordable housing and mixed-use developments as developers reshape the city centre.
Among the largest projects is the R1.2-billion conversion of the landmark Golden Acre office tower into a residential and retail development with 450 apartments.
Another major project is the R1.3-billion City Park redevelopment of the former Christiaan Barnard Hospital, which will include Africa’s first Mama Shelter Hotel alongside residential units.
The R1.1-billion One on Bree development will add more than 500 hotel rooms and 279 residences to the CBD.
The report attributes the growing investor confidence to the Central City’s resilient economy, supported by sectors including business process outsourcing (BPO), tourism, finance, legal services and the creative economy.
According to the report, the CBD recorded 1 495 retailers, the highest on record, after 172 new retail outlets opened during the year. According to the Cape Town Central City Improvement District’s Business Confidence Index, 98% of retailers surveyed in the final quarter of 2025 reported favourable trading conditions, up from 92% a year earlier.
Although office vacancies in the Cape Town CBD edged up to 11.9% in the second quarter of 2026 from 10% at the end of 2025, the wider Cape Town metropolitan area maintained South Africa’s lowest office vacancy rate at 6.2%.
- Cape Town's central business district attracted R12.8 billion in new property investment, a 41% increase from the previous year.
- There are 29 developments either completed, under construction, planned, or proposed, with R6.2 billion focused on residential projects due to growing inner-city demand.
- Residential property prices rose 5.4% to a median of R1.95 million, with a 53.5% total increase since 2020.
- Major projects include the R1.2 billion Golden Acre conversion, R1.3 billion City Park redevelopment, and R1.1 billion One on Bree development adding residential and hotel spaces.
- Investor confidence is driven by a resilient Central City economy, record retail growth, and favorable trading conditions despite a slight rise in office vacancy rates.
Cape Town central business received a surge in investment as the central business district has attracted R12.8-billion in new property investment.
Rob Kane, chairperson of the Cape Town Central City Improvement District board and chief executive of Boxwood Property
“It's astonishing to see development of this magnitude but the real story is that these numbers not only reflect, but also inspire, investor confidence.
Kane said the CBD was also attracting increasing interest from international investors and developers from
A total of 29 developments were either completed, under construction, planned or proposed across the CBD.
However, residential property prices continued to climb, with the median price of sectional title units increasing 5.4% to R1.95 million, extending a 53.5% rise since 2020.
