Cape Town’s property market has changed dramatically since 2019. Back then, sellers were desperate and properties were going well below asking price. Now in 2025, short term rentals like Airbnb are booming, especially along the Atlantic Seaboard and in the CBD.
But is it sustainable?
In this video, I unpack the risks behind the current short term rental craze and explain why I am focusing on long term investments in more stable suburbs like Durbanville, Century City and Rondebosch. From inflated Airbnb returns to the hidden costs most people ignore, I show why long term property offers better consistency, lower risk and stronger overall returns.
We cover:
✅ What is driving the Airbnb trend
✅ Actual occupancy stats and income figures
✅ The real costs most investors forget
✅ How locals are being priced out of the city
✅ Where to find long term value in Cape Town
If you are a first time investor or looking to grow your portfolio, whether you are based in South Africa or abroad, this video offers a grounded and honest view of the market.
Book a free consultation and let us talk property.
Read the full articles:
● https://www.moneyweb.co.za/moneyweb-podcasts/the-property-pod/rampant-demand-for-short-term-residential-rentals-in-cape-town
● https://www.property24.com/articles/time-to-buy-cape-town-luxury-home-prices-fall-by-up-to-r10m/28734
● https://www.dailymaverick.co.za/article/2024-07-28-average-capetonians-cant-afford-any-of-the-new-apartments-on-atlantic-seaboard
● https://www.property24.com/brackenfell/protea-heights/property-trends/9602
● https://www.property24.com/durbanville/property-trends/439
● https://www.bizcommunity.com/article/international-buyers-drive-capes-luxury-property-sales-587450a
● https://www.bizcommunity.com/article/capitalising-on-investment-potential-in-cape-towns-northern-suburbs-583140a
In this episode:
00:00 Chasing Quick Returns
00:31 2019 Cape Town and Atlantic Seaboard Buyer Shortage
01:16 2025 Surge in Short Term Rental Demand
01:32 Rampant Demand for Short Term Residential Rentals in Cape Town
02:08 2019 vs 2025 Short Term Rental Demand
02:49 Seasonal Fluctuations and Increased Operating Costs
03:29 Average Annual Revenue per Annum for Airbnb in Cape Town
03:47 Management Demands of Airbnb
04:20 Are We in a Bubble and Are There Any Warning Signs?
04:58 Risks of Short Term Rental Investors Fueling the Market
05:27 Airbnb Disrupting the Global Property Market
05:59 Cape Town Exploring Short Term Rental Market Regulations
06:22 Understated Rental Income and Tax
06:35 The Conclusion
06:45 Stable Long Term Investments Cape Town Suburbs Have to Offer
07:00 Consistent Demand and Long Term Growth
07:34 Who Is Airbnb a Good Fit For?
07:42 Is Your Aim Long Term Wealth Creation?
08:05 Best Real Estate Returns
08:21 Reach Out and Book a Free Consultation
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