Cape Town’s tourism sector is entering a period of exceptional momentum. International arrivals for 2025 are projected to surpass pre-pandemic levels, driven by renewed global interest in South Africa, expanded international flight routes and a travel culture that prioritises lifestyle and flexibility. This rise in demand is directly influencing the strength of the short-term rental market. Well-located properties suited to Airbnb-style accommodation are experiencing higher occupancy, increased nightly rates and more consistent year-round bookings.
At The Agency, we have seen a clear uptick in enquiries from buyers exploring investment opportunities. Many are remote professionals or part-time residents who value a property that can serve both as a personal base and a reliable income generator. For these investors, Cape Town offers a compelling combination of yield, lifestyle and long-term growth potential.
The Rise of the Remote Traveller
Short-term rentals are no longer defined by holiday seasons alone. A growing number of remote workers now choose Cape Town for extended stays, drawn by the city’s outdoors-driven lifestyle, strong connectivity and walkable neighbourhoods. These travellers prioritise apartments that offer modern interiors, fibre internet, security and proximity to cafés and co-working spaces.
Areas such as Green Point, Sea Point, De Waterkant and the City Bowl remain top performers, delivering strong occupancy throughout the year. Longer stays create greater booking stability, reducing the typical peaks and dips associated with tourism, and offering investors a more predictable return profile.
Neighbourhoods Leading the Market
Cape Town’s most successful Airbnb locations share the same fundamentals. They offer convenience, lifestyle appeal and strong visitor traffic. The Atlantic Seaboard continues to command premium nightly rates, while the City Bowl offers a balance of accessibility and consistent demand. Emerging areas like Woodstock and Muizenberg are attracting younger investors entering the market at more accessible price points while still benefiting from a steady flow of tourists and digital nomads.
Properties that feel well designed stand out. Guests are more selective than ever, and apartments with thoughtful interiors, outdoor elements, secure parking and a sense of cohesion achieve the most reliable performance.
Understanding Regulations and Governance
Short-term letting regulations remain an important consideration. While most sectional-title schemes allow Airbnb activity unless explicitly restricted, investors should understand the governance of each building. Complexes with clear rules, professional management and supportive body corporates consistently deliver stronger results.
Zoning, insurance and municipal compliance should form part of an investor’s due diligence. Clarity upfront supports long-term stability.
Why Cape Town’s Appeal Is Strengthening
Global perception plays a significant role in Cape Town’s rising popularity. Travellers are drawn to the city’s natural beauty, food culture, affordability relative to global destinations and balance between urban life and outdoor living. Many who visit once return, often for longer stays. Some choose to invest.
This shift is reshaping the investment landscape. Properties that perform well as both a personal retreat and a consistent short-term rental asset are becoming increasingly attractive, especially to international buyers seeking diversified lifestyle investments.
What This Means for Sellers
For sellers, the current shift in buyer behaviour offers a clear advantage. High tourism activity and strong demand for well-located short-term rental properties have created an environment where quality listings attract immediate attention and motivated buyers.
Investors are active. Lifestyle buyers are returning. International interest is climbing. Properties that match these criteria are selling efficiently and often at premium prices.
At The Agency, our understanding of both the buyer mindset and Cape Town’s short-term rental performance allows us to position your property with accuracy and impact. Sellers who enter the market with this level of strategic insight consistently achieve stronger results.
If you are considering selling, the timing is strategic. The market is aligned in your favour.
The Agency View
Investing in a short-term rental property requires insight beyond yield projections. At The Agency, we evaluate the fundamentals that influence long-term performance. We understand which buildings consistently outperform, which locations attract the right travellers and how interior design and presentation affect occupancy.
Our boutique approach means every client receives tailored guidance grounded in real experience. Investors choose The Agency because they want clarity, precision and a partner who understands Cape Town’s fast-evolving tourism landscape.
