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Best Area for Vacation Rental Property in Cape Town

  • 2016-09-05

As far as vacation rental property in Cape Town is concerned, location is everything. South Africa’s Mother City is home to a wide range of neighbourhoods.

Best Area for Vacation Rental Property in Cape Town

With two oceans, a small number of business districts, numerous residential areas, a few greenbelts and one large mountain connecting everything together, Cape Town is famous for its rich diversity of places, landscapes and offerings. This is great news for those seeking accommodation, but for property owners who want to get the best returns on their investment, it means that a fair amount of thought needs to be made when choosing your target area.

Choosing Vacation Rental Property Areas in Cape Town

How do you go about deciding which area is best for your vacation rental property investment? For starters, you can consider the following tips…

1/  Consider your ideal market. If you are aiming to attract high income couples or families, your ideal area would be somewhere that offers the type of accommodation sought out by this market. Prime areas such as Camps Bay, Clifton and the Waterfront are always in demand – particularly for 5-star properties. Central areas such as the City Centre however often attract corporate travellers, so an apartment in the heart of the CBD would be the perfect choice for investors targeting the corporate market.

2/ Consider your budget. While the potential rewards for a villa in a sought-after area are good to know, you may find that your budget allows for something a bit less extravagant. If your budget is on the low side, aim to find a smaller property, such as an apartment, in a good area. Investing in a large property in an area that is too far from most tourist attractions, unsafe, too run down or simply not too inspiring is never a good idea. Instead, consider an apartment in the CBD, which will give you a far better return and allow your budget to stretch out further.

3/ Consider your selling points. Do not ever underestimate the importance that area plays when marketing your vacation rental property. Visitors who do some research when planning a trip know which areas they want to stay in and while they may consider somewhere outside of the typical tourist zones, you will need a strong selling point to compete against popular areas. If you find the perfect villa in an area that is safe, quiet and appealing, make sure that it has plenty to entice potential visitors. This could include coffee shops, restaurants, scenery, facilities, or simply a sense of peace and quiet.

4/ Consider your competition. The primary challenge with sought-after areas is that they typically have high competition. If you have found the perfect property in Camps Bay, you will therefore need to ensure that it can hold its own against all the other properties in the area. How can you ensure that guests choose your property? For starters, you can invest in top quality furnishings, decor and appliances. Seeking help from an experienced vacation rental property manager can also go a long way in helping your property stand out from the rest. A well-managed property will always outperform a non-managed or badly managed one, after all.

5/ Consider the seasons. A beachfront villa on Clifton will be magical (and fully booked) during summer, but what about winter? Even though the Cape is blessed with a mild climate that delivers plenty of sunshine throughout the year, not all seasons are ideal for the beach. Make sure that your chosen area is able to provide visitors with year-round attractions and facilities. Whether it is fine dining, shopping, views or convenience, a year-round destination will always attract visitors.


Luckily, with so many beautiful areas to consider for vacation rental property in Cape Town, you will certainly be spoiled for choice. Keep these tips in mind, and you should be able to choose the perfect area for your investment to flourish for years to come.