It’s fascinating to see how the property market has fluctuated over the years. A few years back, both the rental and the buy-and-sell markets were facing challenges; however, currently, there is a scarcity of commercial and industrial properties available for rent or sale. Finding an unoccupied shop or warehouse has become quite difficult.
As brokers specialising in industrial and commercial real estate, we have many tenants and buyers seeking properties, yet very few are available. According to recent data, the industrial vacancy rate in Cape Town’s Northern Suburbs stands at just 2.5% in Q3 2025, even lower than the city’s overall rate of under 3%. Prime nodes like Brackenfell and Stikland are experiencing almost no availability due to limited speculative development and strong e-commerce demand for warehouse space in areas like Epping and Parow Industrial.
Low Vacancy Levels Across Retail, Industrial and Office Spaces
The robust market for retail spaces is partially fueled by both established and emerging franchise ventures, particularly within the restaurant and coffee shop industries. The South African coffee sector, valued at R4.9 billion in 2024, is projected to reach R7.2 billion by 2028. Cape Town's Northern Suburbs are seeing this growth, with Bootlegger Coffee Company and Plato opening new outlets in Bellville and Durbanville, and Mugg & Bean and Vida e Caffè adding drive-thru kiosks in high-traffic spots like Tygervalley and Brackenfell to capture the area’s growing family demographic.
Several new automobile brands are also launching new dealerships in the Northern Suburbs. BYD's new dealership is currently being built on Durban Road in High Street, while Barons Group’s new Volkswagen and Audi facilities in Bellville and N1 City will benefit from the R300 highway access. Haval’s 2025 branch opening in Parow Industrial coincides with a 15% rise in regional vehicle sales.
The office sector has also seen a shift as many businesses realise that remote work is not a sustainable, effective long-term solution, prompting a return to physical office spaces. However, no new office buildings have been developed in the Northern Suburbs since 2021, leading to a further scarcity in the market. Decentralised office vacancy rates in the region dropped to 5.8% in Q3 2025, the lowest in over a decade. This demand is especially evident in hubs like Tygervalley and Century City, where companies are prioritising hybrid-ready spaces amid stalled developments and a 12% increase in white-collar relocations to Cape Town.
What’s Driving the Northern Suburbs Property Boom?
The growing demand across Cape Town’s Northern Suburbs is supported by several clear trends. Consistent population growth, ongoing infrastructure upgrades, and the gradual shift of many businesses toward decentralised hubs have made areas like Bellville, Brackenfell, and Durbanville more desirable than ever. These suburbs offer convenient access to major transport routes, modern facilities, and a growing consumer base, all of which strengthen their appeal for both investors and tenants.
Will This Strong Market in the Northern Suburbs Persist in the Foreseeable Future?
Interest rates are expected to remain stable or decrease slightly in the short to medium term. The South African Reserve Bank (SARB) has cut the repo rate to 7.0% in September 2025, marking the fourth consecutive reduction. Forecasts suggest another 25-basis-point decrease before the end of the year, which could bring the prime lending rate to 10.50%. This stability should continue to support growth in areas such as the Northern Suburbs.
With inflation expected to decline to around 4.0% for 2025, well within the SARB’s 3-6% target range, these are encouraging signs for both our local and global economies.
Cape Commercial & Industrial Property remains committed to diligently sourcing suitable properties for all our clients, using our robust relationships and collaboration with various landlords and fellow brokers within the industry.
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