Dear Executive
February has been a significant month for Property Policy in Cape Town.
📊 With higher rates & taxes being introduced to the Airbnb Market Short-Term Letting bylaw aims to improve Rates Policy compliance for commercial-scale short-term letting.
The whole town has been talking about the future of short-term rentals in Cape Town and for good reason too. Cape Town & the surrounding suburbs is the largest Airbnb market in the world by some margin.
⚖️ Thousands of private landlords make significant income from short-term furnished rentals to tourists, digital nomads and a variety of short-term visitors. With a moderate approach to regulation the City of Cape Town chose to charge commercial rates to properties primarily being used for short-term furnished rentals. This increases income to the city and increases the rates for the Owners without directly interfering in the market.
A blended rental strategy where a mixture of short- and long-term is combined, or holiday rentals where the Owners primarily live on the property, will not be affected. We can assist Property Owners with the above. If you would like to find out more click here.
✒️ The second big event was the largest sale of municipal property that took place on 26 February 2026 with 53 municipal properties coming under the hammer. This marks a landmark shift away from the government playing a direct role in property development and the supply of housing. Shifting their policy to release land and municipal owned properties to be sold to the private sector that can unlock the property potential of key sites more efficiently through free market supply and demand mechanisms.
💰Cape Town rates are also being reviewed at the moment. With significant value increases over the last 5 years and the possibility of being charged commercial rates for some this could lead to a substantial increase in costs.
With the Western Cape Property Market gaining momentum and stock becoming scarce, prices are rising and competition among buyers is intensifying.
While property values are growing, this unfortunately also comes with higher expenses. Every Property Owner needs to carefully weigh up their options and plan accordingly.
To wrap up the month, the JSE hit new all time highs, and with a positive national budget being announced, things are looking positive for the markets as the business and economic environment steadily improves for South Africa.
💡Lastly we would like to invite you to attend our first Property-Investor-Focussed Event ever! Happening 26 March 2026 in Durbanville. We are excited to empower property investors with strategic insights and ways to reduce your risk and maximise the potential of your property investment business. See more here.
I look forward to seeing you there!
Yours in Property
Jacques Grove
Principal and Dreamer
