How is Tourism affecting CPT Commercial Property Demand?

Cape Town’s reputation as a world-class destination, recently crowned the?Best City in the World by?Time Out?2025, is more than a tourism accolade—it’s a powerful driver of commercial property demand. The city’s thriving tourism sector shapes the development of retail, hospitality, and mixed-use spaces, creating opportunities that go far beyond leisure. Here’s how tourism is influencing the commercial real estate landscape in the Mother City.

Tourism Fuels Retail Innovation

Retail spaces in Cape Town have evolved to cater to international visitors who seek unique and immersive experiences. Iconic locations like the?V&A Waterfront?and?Long Street?are prime examples of tourism-driven retail hubs.

“Cape Town’s retail sector thrives because of its ability to adapt to the needs of tourists. Experiential retail—think pop-up stores and interactive spaces—has become a key strategy to capture the attention of visitors looking for something extraordinary,”?explains David Arton-Powell , Head of Cape Town Broking at Galetti Corporate Real Estate .

These spaces aren’t just about shopping—they offer storytelling and memorable experiences, making them a natural draw for tourists and locals alike.

The Rise of Hospitality and Mixed-Use Spaces

Cape Town’s hospitality industry continues to grow, with developers blending hotels, retail, and office spaces into dynamic mixed-use developments. Areas like?Century City?and the?Cape Town CBD?showcase how these projects serve both business and leisure travelers.

“Mixed-use spaces are reshaping the city,” notes David Arton-Powell .

“Tourists want more than just a hotel room—they want access to high-end dining, coworking spaces, and premium retail under one roof. This trend has fueled year-round utility for developers and landlords.”?

The Impact of Events and Festivals

Cape Town’s world-famous events, such as the Cape Town International Jazz Festival?and the?Two Oceans Marathon, significantly boost short-term commercial property demand. Temporary retail spaces, pop-up offices, and hospitality venues thrive during these peak periods.

“These events are not just cultural milestones; they create massive opportunities for commercial spaces to cater to crowds,” says David Arton-Powell .

“From short-term leases to event-specific retail setups, the property market plays a crucial role in supporting these high-demand periods.”

Post-COVID Trends: Outdoor and Eco-Friendly Spaces

Cape Town’s recovery from the pandemic has reshaped commercial spaces to align with new tourism trends. Outdoor spaces and eco-friendly designs are gaining prominence, driven by a global shift toward sustainability and wellness.

“Cape Town’s natural beauty gives it a unique edge,” explains David Arton-Powell .

“Developers are integrating green technologies and outdoor elements into their projects, creating spaces that align with eco-conscious tourism trends.”

Luxury and Niche Markets Are Booming

Cape Town is becoming a hub for high-end retail and dining, catering to affluent international tourists. Areas like the?Cape Quarter?and?Clifton?showcase luxury brands, bespoke boutiques, and exclusive culinary experiences.

“International brands see Cape Town as a gateway to Africa,” says David Arton-Powell .

“These high-street retail spaces are about more than shopping—they’re status symbols that draw both locals and tourists seeking premium experiences.”

Conclusion

Cape Town’s tourism growth is a vital engine for its commercial real estate market. From bustling retail hubs and luxurious mixed-use spaces to innovative green developments, the city is setting the stage for a bright future.

“The synergy between tourism and commercial property is undeniable,” concludes David Arton-Powell .

“Cape Town isn’t just a great place to visit—it’s a thriving hub for investment and innovation.”

Cape Town’s blend of natural beauty and cutting-edge development ensures its place as one of the world’s best cities—and a prime destination for property investment.