Opening a store in one of Cape Town’s busiest shopping destinations doesn’t come cheap.
Retailers hoping to secure space at some of the Western Cape’s flagship malls often face some of the highest rental prices in South Africa. Yet despite those steep costs, businesses continue to compete for available space, and for good reason.
New retail figures show that the Western Cape remains the country’s strongest-performing province when it comes to shopping mall earnings, thanks to a combination of high consumer spending, a booming tourism sector and affluent local shoppers, as reported by Business Tech.
The Western Cape recorded the highest trading density in South Africa during the first quarter of 2026.
Trading density, a key retail performance indicator measuring annual sales generated per square metre of retail space, reached R50 262 per square metre, representing a 5.2% increase compared with the previous year.
The Western Cape’s performance is roughly R5 000 per square metre higher than KwaZulu-Natal, the country’s second-best-performing retail market.
Few places illustrate the province’s retail strength better than the .
The iconic Cape Town destination attracts around 24 million visitors every year, making it one of South Africa’s busiest retail and tourism hubs.
That popularity comes at a premium.
According to Occupi, retail tenants can expect to pay somewhere between R400 and R600 per square metre for space at the Waterfront.
Even with those prices, vacancies are exceptionally rare. The shopping destination maintains an occupancy rate of around 99.7%, highlighting the continued demand from retailers wanting a presence there.
The attraction is simple: more visitors often translate into stronger sales.
Cape Town’s thriving tourism industry provides retailers with seasonal surges in customer numbers, while wealthy local consumers help maintain consistent spending throughout much of the year.
KwaZulu-Natal offers a different retail equation.
At Cornubia Mall in Durban, retailers can lease space for an estimated R250 to R350 per square metre, significantly lower than comparable space at the V&A Waterfront.
The centre also welcomes fewer shoppers, attracting around 6 million visitors annually.
Despite the lower foot traffic, KwaZulu-Natal still performs strongly.
The province recorded a trading density of approximately R45 278 per square metre, suggesting that more affordable rentals can still deliver attractive returns for retailers.
The difference in retail rental prices closely reflects the broader property markets in both provinces.
Commercial property in Cape Town generally commands higher values than similar space elsewhere in South Africa, pushing up rental costs for businesses.
However, many retailers appear willing to absorb those expenses because of the province’s strong earning potential.
For brands able to secure space in the Western Cape’s busiest malls, the combination of tourism, high consumer spending and limited retail availability continues to make the investment worthwhile.
While retailers may face some of the country’s highest rental bills in the Western Cape, the latest figures suggest those costs are often offset by stronger sales performance.
With shopping centres continuing to benefit from millions of tourists each year, alongside steady spending from local consumers, the province has once again cemented its position as South Africa’s retail powerhouse.
For businesses weighing up where to invest, the message from the latest data is clear: in the Western Cape, paying more for retail space can still mean earning even more.
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Picture: Esa Alexander / Gallo Images
Aiden Daries
www.capetownetc.com