The most recent estimate value of property investment in Cape Town’s CBD of R9.031 billion for 2024/2025 is a significant increase compared to the Cape Town Central City Improvement District’s (CCID) figure of R7.285 billion in 2023 and the R3.555 billion reported in 2022.

Rob Kane, Chairperson of the CCID and CEO of Boxwood Property Fund says this magnitude of investment is extraordinary for an area of only 1.6km² and in a country with a lukewarm economy.

The property investment figures in the CCID’s latest State of Cape Town Central City Report 2024 – A Year in Review (SCCR) encompass completed developments and redevelopments, those under construction and in the proposal/planning stages. The SCCR details 27 developments with R1.02 billion completed, R3.93 billion under construction and R4.081 billion planned for 2024 and 2025.

Inner-city living contributes to the dynamism of the CBD with the SCCR recording 6 819 residential units at the end of 2024. With an estimated value of R2.93 billion, new residential builds continue to dominate property investment in the CBD in 2024/2025, representing 44% of developments in the pipeline.

The median price of sectional title properties over five years increased from R1.27 million in 2020 to R1.95 million in 2025, an increase of 53.5%. In 2024, a 16.3% increase saw prices rise from R1.59 million in 2023 to R1.85 million.

There are seven mixed-use developments worth R4.72 billion in various stages of development for 2024/2025 including the rejuvenation of the former Christiaan Barnard Hospital into the R1.3 billion City Park that will blend hospitality, residential, co-working, and entertainment spaces as well as the international hotel brand, Mama Shelter.

Another mixed-use property that has started construction is One on Bree (estimated at R1.1 billion). The 131-metre building will include a 500+ room luxury hotel, over 279 apartments and more, and is expected to dramatically change the tone of the Foreshore.

In the East City, an R135-million aparthotel under construction, namely Excelsior / 82 Harrington, will become a sister aparthotel to Neighbourgood 84 Harrington, the world’s first 12-storey building constructed from hempcrete blocks and completed in 2023.

Affordable housing is on the cards too. Of the 840 units planned for the Western Cape Government’s Leeuloop Precinct, 350 will be allocated to affordable housing. Ingenuity Property Investment in collaboration with Diversity Urban Property Group will also offer 442 rental units at affordable rates in its 23 Lower Long development.