Cape City is on many a traveller’s bucket listing, with its iconic points of interest resembling Desk Mountain and blue-flag seashores – and proved a wonderful funding vacation spot in 2019.
In accordance with the 2019 State of Cape City Central Metropolis Report (SCCR), the yr “proved to be dynamic, resilient and ever-expanding, driving funding into what’s arguably essentially the most profitable metropolis centre in South Africa”.
Because the inception of the Cape City Central Metropolis Enchancment District by native property homeowners in 2000, board chair Rob Kane says the physique has sought to maintain town crime-free, clear and open for enterprise.
Kane says the central metropolis held its personal, regardless of 2019 being an extremely tough yr: “Stakeholders and buyers within the CBD have had to deal with the aftermath of the 2018 drought and subsequent water disaster, ongoing load shedding and a tricky financial local weather.”
The central enterprise district did effectively in 2019, with the overall worth of property investments within the proposed, deliberate, under-construction or accomplished phases is R13.83 billion, with the Foreshore precinct rising as a key property funding node. The report attributes this partially to the growth of the Cape City Worldwide Conference Centre, which it stated contributed R4.5 billion to the Western Cape’s gross geographic product.
The report places the 2018/2019 worth of central metropolis property at greater than R44 billion.
Tasks accomplished in 2019 embrace the Signature Lux Resort in Heerengracht Road, the Capetonian Resort on Heerengracht Road, and The Halyard on Christiaan Barnard Road. Deliberate developments embrace the Telkom Alternate Foreshore on Decrease Lengthy Road, The Vogue on Buitengracht Road, 27 Decrease Lengthy Road and Beaufort Home on Jack Craig Road. There are seven different developments at the moment underneath development.
It is a vital enchancment from a couple of years in the past. The SCCR reveals that the worth of property within the metropolis centre soared by practically 40%, from R30.6 billion in 2016/2017 to R42.eight billion in 2018/2019, with 39 new developments price over R13.5 billion within the pipeline.
A resilient central metropolis post-Covid-19
Nevertheless, 2020 is a yr in contrast to every other – the Covid-19 pandemic has brought about unprecedented devastation globally. It stays to be seen how town’s economic system will fare. In his write-up within the report, Cape City Mayor Dan Plato is assured that town’s residents will “bounce again”, whereas Western Cape Premier Alan Winde referred to as town the “responsive engine room of the economic system”, stating his assurance that it might “prepared the ground as cities face this problem and adapt to new methods of doing enterprise”.
Wesgro CEO Tim Harris says the pandemic has introduced unprecedented alternatives which spur innovation, transformation and greatest apply.
“We have now seen how native companies are pioneering new methods of doing issues: constructing resilience now, in addition to for the longer term.”
Wesgro, along with the Western Cape Authorities and Metropolis of Cape City, has adopted a three-pronged method to the pandemic: response, adaptation and restoration.
Chief economist at Sanlam investments Arthur Kamp acknowledges that the “international devastation” has broken town’s economic system. However he says the financial efficiency of what’s arguably South Africa’s most profitable CBD means it’s well-placed to navigate a path to restoration.
Kamp provides that because the pandemic led to journey restrictions Cape City ought to now work on reviving its tourism sector.
“As soon as Covid-19 passes, pent-up demand ought to unleash a wave of overseas guests.”