Key economic sectors that drive the downtown economy – including hospitality, business and leisure tourism, eventing and the cruise economy – also proved resilient in the lukewarm national economy.
Business confidence was also high throughout 2024, with the retail sector holding steady and the number of retail entities increasing year-on-year.
These are the main findings of the latest edition of the State of Cape Town Central City Report 2024 – A Year in Review (SCCR 2024), published annually by the Cape Town Central City Improvement District (CCID).
The findings of the 13th edition reflect on the state of Cape Town’s CBD economy during the previous year. The report focuses on the geographical footprint in the Central City in which the CCID operates. It was released to prominent Cape Town business and property leaders in Cape Town on Wednesday, 17 September 2025.
A total of 27 property developments or redevelopments were recorded in 2024/25: five were completed (worth more than R1.020bn); 11 were under construction (worth more than R3.930bn); eight were in the planning phase (worth more than R4,081bn). Two developments were proposed while one was on hold, with values to be confirmed.
The overall official value of all property in the CBD is R42.5bn, according to the City of Cape Town’s 2022 property evaluation.
Innovative residential builds dominated the property pipeline: 12 developments (44%) were residential properties, followed by seven mixed-use builds (a mix of commercial and residential), indicating that the demand for urban accommodation is ongoing. The residential developments are set to add thousands of new units to the Cape Town CBD’s residential property market.
Two luxury high-rise hotels, namely Mama Shelter Cape Town and One on Bree, were under construction. Both are situated in mixed-use developments in Bree Street and are set to boost the hospitality sector which is booming thanks to Cape Town becoming a year-round destination for global travellers.
Rob Kane, chairperson of the CCID board and chief executive officer of Boxwood Property Fund says it’s notable that many of the property developments are big builds, “indicating that investors have great confidence in the CBD”.
Kane notes that “all the big players in property development are prepared to invest in the Cape Town CBD. We’re getting more interest from national and international investors, too.
“Ultimately, more buildings mean more people, which translates into a busy, bustling, vibrant area, and augurs well for the day- and nighttime economies,” Kane says.
Research in the 84-page SCCR 2024 is a valuable tool for investors, developers, and business- and property owners seeking to invest in South Africa’s most business-friendly city centre.
At least 11 of the 18 business sectors that operate in the Cape Town CBD experienced growth in 2024, with the number of business entities overall totalling 3,290.
These include the top two sectors, namely the legal and medical sectors, which both expanded in 2024. Other sectors experiencing growth were finance, investment, insurance & banking; comms, media & advertising; specialised services; education & resources, property & real estate; co-working spaces and embassies & consulates.
One of the key business sectors, namely retail – which makes up 1,323 of the 3,290 business entities – once again increased its footprint in 2024, with 18 new retail outlets opening their doors.
Retail confidence in the Cape Town CBD, as measured in the CCID’s quarterly Business Confidence Index, remained buoyant in 2024. By the end of the year, an impressive 91.0% of retailers surveyed indicated they were “satisfied” with current business conditions.
According to the State of Cape Town Report 2024, the total volume (m²) of retail space available in the Cape Town CBD in 2024 amounted to 274,320m², marginally higher than the 262,815m² recorded at the end of 2023.
This increase is attributed to the completion of the R200m retail development, The Mutual, a new shopping centre which introduced 7,500m² to the CBD, with anchor tenants Checkers and Mr Price.
Meanwhile, the total retail space occupied across the CCID’s footprint in the CBD in 2024 amounted to 257,875m², an increase of 10,852m² from the 247,023m² recorded in 2023.
The total vacancy rate of retail space in the Cape Town CBD – 16 445m² – amounted to 6% of the total retail space available. This is the same vacancy rate as the previous year.
Other key findings in the SCCR include:
Unique features of the report include:
