Cape Town has become a global hotspot for remote workers, driven by the post-pandemic shift toward flexible work. Long admired for its striking landscapes, vibrant culture, and unique mix of city and nature, it is now a preferred base for digital nomads worldwide.
With fast internet, a growing network of coworking hubs, and comparatively affordable living costs, Cape Town checks many boxes for location-independent workers.
The real estate sector is responding quickly. Industry experts note rising demand in the Western Cape for adaptable properties that support multi-generational living and generate income through short-term rentals. For many, property has become a side hustle – an additional revenue stream layered over their primary job.
This shift is particularly visible in the growing popularity of medium-term rentals—leases ranging from one to six months—which are disrupting traditional norms in both leasing and hospitality.
Cities like Cape Town and San Francisco are leading the way, offering the perfect hybrid of stability and flexibility for both tenants and investors.
“Remote work and the demand for flexible living across the world is driving the rise of medium-term rentals,” said St John Gardner, commercial director and co-founder of Neighbourgood, a Cape Town-based hybrid hospitality firm.
The company renovates and operates co-living and co-working spaces, sharing investment value with co-owners of each property.
According to Global Citizen Solutions, the number of remote workers grew from 10.9 million in 2020 to 35 million in 2024 – a 224% increase.
A Skyscanner report projects that by 2030, 60 million people will work remotely from anywhere, while the World Economic Forum estimates over 90 million remote-capable jobs by then.
For investors, this shift offers strategic advantages. Gardner believes that the space between short- and long-term leases is where the biggest opportunity now lies. As remote work grows and accommodation preferences shift, property owners are increasingly drawn to the middle ground.
One key advantage is flexibility. Medium-term rentals avoid the rigidity of year-long leases while offering more stability than high-churn short-term stays. This appeals to a growing pool of remote workers, professionals, and expatriates seeking temporary, high-quality living arrangements.
“Cape Town and San Francisco are two specific cities where the demand for flexible housing options tends to fluctuate with seasonal and economic trends,” said Gardner. Medium-term rentals allow landlords to adjust rates more frequently, optimising income and aligning with demand throughout the year.
Financially, the model is compelling. While short-term rentals can be profitable, they often come with high turnover costs and property wear. Medium-term leases reduce these burdens, providing more consistent income and lower vacancy rates.
In Cape Town, where seasonal tourism intersects with a mobile workforce, these rentals are especially effective. Landlords enjoy strong occupancy and better returns compared to conventional long-term rentals. San Francisco shows similar trends, driven by a tech-fueled, transient workforce that values flexible housing options.
Gardner highlights the investor benefits:
-Premium pricing with reduced turnover costs
-Higher occupancy rates—85–90% vs. 65–75% for short-term rentals
-Lower vacancy and maintenance expenses
-Rising demand from remote workers, business travellers, and expats in key global cities
“For property investors looking for a profitable, low-risk and hassle-free income stream, medium-term rentals present a very compelling investment strategy for 2025 and into the future as the trend towards flexibility is not showing any signs of diminishing,” said Gardner.
