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Cape Town's Big Boom!

  • Writer: Cheyenne Lucey Donnelly
    Cheyenne Lucey Donnelly
  • Jan 13
  • 3 min read

I'm often asked the same question by investors:

“Is now really the right time to buy property in Cape Town? Everything is so expensive.”

My answer is simple: yes ...if you buy correctly.


Cape Town continues to prove itself as South Africa’s most resilient and attractive property market, and I’m seeing this first-hand every day across residential, commercial, and industrial sectors.


People Are Flooding to Cape Town

One of the strongest indicators of a healthy property market is population movement. Cape Town continues to attract professionals, families, entrepreneurs, and international buyers who are choosing to relocate here for lifestyle, infrastructure, and long-term opportunity.


This season, the city has been exceptionally busy. The volume of people relocating both permanently and semi-permanently is placing huge pressure on housing availability across multiple areas, from the Atlantic Seaboard and surrounding areas,


From an investment perspective, this is critical:

  • More people moving in means sustained demand

  • Sustained demand supports rentals and resale values

  • Limited supply keeps pressure on prices

This is not a short-term trend. It’s a structural shift and it’s why Cape Town consistently outperforms other metros.


Residential Property: Demand Where It Counts

On the residential side, areas along the Atlantic Seaboard remain exceptionally strong. Suburbs like Sea Point continue to attract both end-users and investors because they offer:

  • Consistent rental demand

  • Proximity to the CBD and key lifestyle nodes

  • Limited availability of quality stock


Sea Point, in particular, strikes a rare balance between lifestyle appeal and solid investment fundamentals. Properties are flying off the market, and well-located apartments simply do not stay available for long due to the level of demand.


New developments and smaller holdings are coming onto the market not only in Sea Point, but across the board and yet demand is outpacing supply. The reality is that it’s becoming difficult to keep up with the number of people needing accommodation in Cape Town right now.

Rental prices are higher than they’ve ever been, but this isn’t driven by speculation it’s driven by necessity. Many tenants are running out of options, which continues to support strong yields for investors.


Industrial & Commercial: A Sector Investors Are Paying Attention To

Beyond residential, I’m seeing strong and growing interest in industrial and commercial property across Cape Town. Logistics, warehousing, and light industrial properties are benefiting from e-commerce growth, supply-chain shifts, and businesses relocating operations to the Western Cape. For investors seeking stability and predictable returns, this sector remains highly attractive.

Commercial property, when correctly positioned and leased, continues to offer diversification and long-term value especially when aligned with the right tenant profile and location.


Why Buying Now Still Makes Sense

Market conditions are currently favourable for buyers who are prepared and well advised:

  • Interest rates have stabilised

  • Demand remains exceptionally high

  • Quality stock is being absorbed quickly


Waiting for a “perfect” time often results in paying more later, particularly in a market like Cape Town, where supply is naturally constrained, and properties do not sit on the market for long.

The key isn’t timing the market - it’s buying the right property for the right reason.


How I Work With Investors

My role isn’t just to sell property , it’s to help investors make informed, strategic decisions.

I work closely with buyers to understand:

  • Their investment goals (yield vs capital growth)

  • Risk appetite

  • Time horizon

  • Preferred sector (residential, commercial, or industrial)

From there, I focus on identifying opportunities that make sense, not just on paper, but in practice. I’m deeply involved in the Cape Town market, and I believe honest advice and long-term thinking matter far more than quick deals.


The bottom line is simple: Cape Town remains a city people actively want to live and work in, supported by a property market with real depth, sustained demand, and proven resilience and one that continues to perform strongly across residential, commercial, and industrial sectors.


If you’re considering investing, this is the time to have the right conversation with the right advisor.

I’m always happy to talk through opportunities, risks, and strategy and help you decide what makes sense for you.

 
 
 

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