Business optimism in the Cape Town CBD has reached its highest level since 2020.

The Cape Town Central City Improvement District’s (CCID) Q1 2025 Business Confidence Survey, with responses from 293 businesses in the inner city, found nearly 95% are satisfied with current conditions, and 66% report improved economic conditions over the past year – an unmistakable sign of a local turnaround.

CCID CEO Tasso Evangelinos pointed to small business owners shaping the CBD’s resurgence. He said that retailers in town have shown remarkable resilience and a willingness to adapt, innovate and reimagine their spaces over the past few years.

“Retailers in the Cape Town CBD have shown remarkable resilience and a willingness to adapt, innovate and reimagine their spaces over the past few years,” he said.

“This entrepreneurial energy is clearly paying off – confidence in future business performance remains strong, with nearly 75 % of businesses rating their 12-month outlook at four or five out of five. It’s an encouraging sign that the inner city continues to offer fertile ground for growth and opportunity.”

The post-pandemic recovery of Cape Town’s CBD is evident: the total number of businesses increased from 3 116 in 2022 to 3 302 in 2023, with 186 new ventures spanning clothing stores, coffee shops, art galleries, professional service firms, and artists’ studios.

Top industries by gross value added (2022): Finance (34.4%), Community services (19.4%), Trade (15.9%), Manufacturing (14.8%), Transport (8.9%).

A deeper dive in the State of Cape Town Central City Report 2023 reveals the broader economic landscape:

• GDP (Q4 2023): South Africa – R4.6 trillion; Western Cape – R655 billion; Cape Town contributes approximately 73% of the province’s GDP.
• GDP per capita (2022): Cape Town – R145,985 (above the Western Cape average of R130,875 and national R108,466).
• Tourism: Over 70 ocean liners docked, while international passenger traffic at Cape Town International Airport nearly doubled from 2022 to 2023.
• Property investment: R7.285 billion was pumped into 30 central-city developments in 2023, with 40% (R2.467 billion) earmarked for residential space.
• Real estate values: The median sectional title property price reached R1.58 million in 2023, with total CBD property valued at R42.8 billion.

With increasing footfall, economic diversity, rising investor interest, and strong confidence among business owners, Cape Town’s CBD stands poised for long-term opportunity and economic growth and investment.