Cape Town’s V&A Waterfront has reported a robust financial performance, with retailers raking in R11.3 billion in sales over the latest fiscal year. This figure underscores the enduring appeal of one of South Africa’s premier tourist and shopping hubs. The precinct saw retail sales climb by 6.2% in FY2026, averaging around R942 million in sales each month. This growth was primarily driven by a significant uptick in visitor numbers, which reached 27 million, marking a 7% increase from the previous year. The rise in both domestic and international tourism, bolstered by increased arrivals at Cape Town International Airport, played a vital role in this achievement.
In addition to the surge in sales, the V&A Waterfront maintained a remarkably low vacancy rate of just 0.9%, outperforming benchmarks for major regional shopping centers. The site continues to expand its luxury retail offerings with the completion of a new 3,752-square-meter luxury mall at Victoria Wharf. This new development already houses prestigious brands such as Burberry, Louis Vuitton, Gucci, Zegna, Versace, and Rolex, with remaining tenants expected to open their doors by the end of October 2026.
Looking ahead, further expansion plans are on the horizon as authorities have approved an additional 440,000 square meters of development rights. The first phase of this expansion will feature 200,000 square meters of mixed-use space, including residential properties, hotels, offices, and retail areas. Notably, at least 10% of the residential section will be dedicated to affordable housing. Future development is also in the works, with another 240,000 square meters potentially available, contingent on a traffic impact assessment, and at least half of this space will be allocated for residential use.
Among other notable projects in the pipeline, 160 built-to-rent apartments are expected to be ready by March 2027, while a 142-room Cape Town EDITION hotel is slated to open its doors in October 2026. With these developments, the V&A Waterfront is poised to remain a significant contributor to its owner’s financial performance, with operating profits projected to grow at a double-digit rate in FY2027.