Cape Town’s recovery sparks a new wave of semigration 

One of the biggest pre-pandemic trends in the SA property market was the strong wave of migration from provinces like Gauteng and KZN to the Western Cape and to Cape Town in particular. 

The general slowdown in people’s movement patterns during lockdown may have put a damper on this trend, but its back and bigger than ever in 2022.

With the Mother City outperforming Johannesburg in terms of economic growth and future potential, investors and business professionals from up north are packing their bags and joining the ranks of semigrants who now call Cape Town home.

In this article, we take a look at one of the most positive trends that counts in Cape Town’s favour this year, both in terms of the residential and commercial property sectors.

Is Cape Town beating Joburg at its own game?

Anyone who still thinks that Cape Town is simply a place for amazing holidays and a peaceful retirement while the money is up in Joburg may need to think again. 

In the past 15 years, Cape Town’s record of good governance and foreign investment has created a totally modernised urban environment with a thriving tech sector and an economy that has shown its resilience extremely strongly during the Covid era.

Evidence of this fact can be seen in Cape Town’s relatively quick recovery from the pandemic slump in comparison to Joburg’s ongoing troubles, sluggish economy, and high vacancy rates in major commercial buildings.

As the world economy shifts to an online based competitive market in skills rather than the old industrial model that dominated the 20th century, Cape Town is emerging as one of Africa’s foremost technology hubs. 

At a time when data mining is more lucrative than gold mining, Joburg may be at risk of losing its throne as Africa’s economic powerhouse.

For the commercial property sector, this news couldn’t come at a better time. 

According to a Property Wheel report in January of this year, brokers indicated that Cape Town’s sales activity levels in the latter half of 2021 compared to the first six months of the year, showed the strongest index reading at +53.75. 

The sector has weathered the Covid storm, with occupancy rates stabilising in late 2021, and with an overall improvement in the economy and good future prospects, we have a good reason to be cautiously optimistic in 2022 and beyond.

It’s worth noting that the Cape Town retail property market also reflected the strongest index reading of +46.43.

Cape Town’s recovery leads all major metros 

The latest FNB property brokers index report paints an excellent picture of activity levels in the Cape Town commercial space. In fact, the metro is outperforming all other South African cities and is likely to continue doing so in 2022.

As with economic recovery and migration patterns, this solid performance is in contrast to the sluggish recovery seen in Johannesburg. 

The fact that Cape Town is outstripping its large rival to the north in so many areas bodes well for the Western Cape. The province is showing a strong recovery from the Covid slump as it charts its path forward into a future where tech leadership, opportunities for remote working, and a stable urban environment will give the city a huge edge.

• As skills and capital continue to move from Gauteng to the Western Cape, opportunities in the Mother Cityare likely to increase significantly in the coming years. 
• This new waver of semigration brings with it a vibrant society of entrepreneurs, investors, specialists, and academics that can help shape Cape Town’s future as it transitions from small scenic city to a truly cosmopolitan and Afropolitan 21st-century hub.
• With big names like Amazon getting ready to headquarter in Cape Town, the city is also preparing for a future in which it can serve as a major tech hub for Africa. 

International travel is showing strong signs of recovery and as travel resumes, Cape Town’s inherent appeal as a tourism and business destination should add a new element of growth to an already positive recovery.

Share in Cape Town’s economic renewal – Join the new wave of semigration

If you’re excited by the good news coming out of Cape Town lately, now could be the ideal time to join the ranks of newly settled entrepreneurs who are reshaping the city’s business culture.

The Commercial Space team is on hand to assist business owners who are new to the city in finding the ideal modern premises to suit their companies’ needs. 

Contact us today to get started to get started