Cape Town - The Cape Town CBD’s post-Covid-19 economy is on the rebound, with property investment in the inner city last year exceeding R3.5 billion, and the retail, hospitality and eventing sectors in a phase of regeneration.
This rally has been achieved in the face of threats such as the energy crisis, new hybrid and remote-working arrangements, competition with other precincts, long commutes, and a lack of consistent footfall.
These are some key findings of the State of Cape Town Central City Report 2022 – A Year in Review, by the Cape Town Central City Improvement District (CCID).
CCID board chairperson Rob Kane said the construction sector was regaining its pre-Covid-19 momentum, and the total value of property investment in the CBD, boded well for further growth and investment in the economic hub of the Mother City.
Twenty-two property developments or redevelopments were recorded last year. Of them, four, in excess of R170m, were completed; 12, worth in excess of R3bn were under construction; five were in the planning phase, and one was at the proposal stage.
Eight were residential buildings, set to add thousands of units to the CBD’s highly competitive property market.
Of the rest, he said six were commercial, four were mixed-use, two were retail, and one was a parastatal.
Kane said CBDs, traditionally the commercial heart of a metropolitan area, had no choice but to reinvent themselves to remain attractive and competitive urban centres.
He said ageing real estate in CBDs presented a major challenge for both occupancy and capital value preservation, with tenants showing a preference for newer space.
Kane said buildings, however, especially historical buildings, that had been extensively and sensitively refurbished were in demand among the ecologically aware.
He said this was especially so because refurbishments came at a lower environmental cost than new developments.
Premier Alan Winde said Cape Town and the province’s resurgence after a gruelling couple of years under the spectre of Covid-19, were in large part thanks to the citizens and the private sector.
“Their grit, tenacity, resourcefulness and resilience shone through this difficult time, ensuring our province and the Mother City endured.”
Mayor Geordin Hill Lewis said Cape Town was increasingly bucking the national trend of serious challenges – from the energy crisis and widespread infrastructure collapse to a stalled economy and dangerously high unemployment.
“There are several reasons for this, but one of the most significant is the fact that we have a vibrant, attractive and safe city centre, and we’re the only metro in South Africa that can honestly make that claim.”
He ascribed much of the credit for this to “the tireless work done by the CCID in its undertaking to manage and position Cape Town’s Central City as a premier investment destination and business hub.”