Cape Town CBD surge: Investor confidence, jobs, new builds

• R9.03bn development pipeline in 2024/25 (vs R7.29bn in 2023) signals strong capital commitment to the CBD.
• Retail expands to 1,323 entities with 18 new openings; vacancy steady at 6% as occupied space rises by 10,852 m².
• Office vacancies tighten to 9.4% (latest), down from 10.2% and 13.3% in prior years; tourism and cruise economy rebound.

Let’s call it straight: while the national economy idles, the Cape Town CBD is building at pace and trading with intent. The cranes are back, retail tills are ringing, and offices, still the city’s biggest concentration of space are quietly tightening.

This isn’t hype; it’s hard numbers pointing to rising investor confidence and a live-work-play district that’s found its post-pandemic stride. The latest State of Cape Town Central City Report 2024 - A Year in Review (SCCR) lands with one message: capital believes in the CBD, and users are following.

Key findings at a glance

• Development momentum: 27 projects logged in 2024/25 - 5 completed (R1.02bn), 11 under construction (R3.93bn), 8 in planning (R4.081bn), 2 proposed, 1 on hold.
• Valuation base: Official CBD property value sits at R42.5bn (City of Cape Town, 2022 valuation).
• Residential leads: 12 of 27 (+-44%) are residential; 7 mixed-use - adding thousands of new units to the inner-city pipeline.
• Hospitality up-cycle: Two luxury high-rise hotels - Mama Shelter Cape Town and One on Bree - under construction in Bree Street mixed-use schemes.
• Business depth: 3,290 total entities; 11 of 18 sectors grew in 2024.
• Retail resilience: 1,323 retailers; 18 net new openings; 91% retailer satisfaction (CCID BCI).
• Office stability: CBD retains 40% of Cape Town’s total office space (SAPOA).

Main findings from the 2024 State of Cape Town Central City Report

Residential & Commercial Developments

• Pipeline totals R9.031bn (2024/25), up from R7.285bn (2023).
• Residential dominates future stock; mixed-use deepens live-work-play density.
• Hotel builds echo a year-round tourism pattern, feeding footfall and spend.

Economy

• Hospitality, business & leisure tourism, eventing and the cruise economy proved resilient despite a tepid national backdrop.
• The SCCR 2024 (Year in Review) confirms the CBD’s role as SA’s most business-friendly city centre.

Business

• Expansion across legal and medical (top sectors), plus finance, media, specialised services, education, property, co-working, and embassies/consulates.
• Confidence remained high throughout 2024, supporting hiring and space take-up.

Retail

• Total retail space: 274,320 m² (2024) vs 262,815 m² (2023).
• Growth driven by The Mutual (R200m; 7,500 m²) with Checkers and Mr Price as anchors.
• Occupied retail space: 257,875 m² (↑10,852 m² y/y).
• Vacancy: 16,445 m² - a steady 6% of total.

Offices

• Vacancy trending down: latest 9.4%, from 10.2% (prior year), 13.3% (2022) and 16.1% (2021).
• The CBD still commands the largest share (40%) of Cape Town’s office market.

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“The scale of current projects says it all, capital is backing the Cape Town CBD. More buildings mean more people, a busier street life and stronger day and night-time economies.” Rob Kane, CCID Chair & Boxwood CEO

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Why people live in the CBD (CCID Residential Survey themes)

• Proximity: walk to work, universities, courts, and major employers.
• Walkable amenities: shops, gyms, dining, culture, and nightlife within minutes.
• Managed environment: visible safety, cleaning, rapid response and services.
• Mobility: MyCiTi, rail links, e-hailing, cycle-friendly streets.
• Lifestyle value: compact living, new residential options, and mixed-use convenience.

Bottom line: If you’re placing capital, or choosing where to live, the CBD’s trajectory is clear: denser, more mixed-use, and increasingly investable. The numbers back the story; the streets do too.

Download the report

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