A Beacon of excellence in built environment and investment success

At the 15th Annual Africa Property Investment Summit, a key topic of discussion was the success of the Western Cape in becoming a model of excellence in the built environment and a magnet for investment. The region's growth, driven by public-private partnerships, community action, and effective governance, was a focal point for experts and investors.

Public-Private Partnerships Driving Growth

Professor Francois Viruly from the University of Cape Town highlighted that Cape Town is experiencing a significant surge in development, with R7.8 billion worth of projects underway in the central business district (CBD) over the next three years. He attributed much of this growth to semigration, with people and businesses moving to the region in search of better opportunities. This has translated into a robust property market, with Cape Town’s CBD vacancy rates standing at just 5%, compared to Johannesburg’s Sandton CBD, which has vacancy rates around 18%.

Viruly emphasized that the collaboration between the public and private sectors has been crucial to creating a conducive environment for development and investment. The city’s forward-thinking policies and infrastructure investment have made it an attractive destination for both local and international investors.

Creating Spaces for Growth

Tamra Capstick-Dale, Managing Director of Corporate Image, discussed the long-term vision and planning behind the success of landmark developments like the V&A Waterfront and Century City. She noted that these developments, initially viewed as speculative, have become key anchor assets, attracting new retail tenants and fostering an ecosystem that supports the growing number of digital nomads. Cape Town’s unique blend of aesthetic appeal, cultural heritage, and modern amenities makes it an ideal base for skilled professionals, further contributing to the city’s GDP.

Mayor Geordin Hill-Lewis’ office was commended for its strong relationship with the business community. The city’s proactive approach to service delivery, including its reinvestment of rate payments into improving municipal services, has created a solid foundation for ongoing development.

A Business-Friendly Environment

Quinton Rossi, co-founder and CEO of Spear REIT, shared insights into why the Western Cape continues to be a preferred destination for property investment. The region’s reliable infrastructure, combined with its breathtaking natural landscape of mountains and oceans, makes it highly desirable for both residential and commercial development. Spear REIT, which focuses on acquiring and upgrading existing assets, has capitalized on these advantages, generating consistent returns.

Rossi also praised the city’s dependable municipal services and the additional support provided by the 52 City Improvement Districts (CIDs) that enhance local infrastructure. This close relationship between the private sector and the city has helped unlock significant value, with over R15 billion being funnelled into the provincial economy.

A Bright Future Ahead

Murray Clark, CEO of Neighbourgood, discussed the increasing trend of converting C-grade office spaces into premium-grade developments. He noted that Cape Town’s proactive approach, supported by the Central City Improvement District (CCID), has allowed for these transformations, making the city an attractive destination for both local and foreign investors. The city’s relatively low cost of living, compared to other major global cities, further enhances its appeal.

The Western Cape’s success story is one of collaboration, innovation, and strategic investment, positioning it as a beacon of excellence in the African property market.