The V&A Waterfront in Cape Town has demonstrated its enduring appeal as a top-tier tourist and shopping destination in South Africa, with retailers at the site generating R11.3 billion in sales over the latest financial year. This impressive figure reflects a 6.2% increase in retail sales for FY2026, translating to an average of R942 million each month, underscoring the precinct’s robust retail environment. This growth is attributed to a surge in visitor numbers, with the V&A Waterfront welcoming 27 million visits—a 7% rise from the previous year—thanks to the influx of both domestic and international tourists. The increase in arrivals at Cape Town International Airport also contributed to this trend.
Adding to its allure, the V&A Waterfront has maintained a remarkably low vacancy rate of just 0.9%, a testament to its appeal to retailers. The precinct’s retail operations continue to surpass the performance benchmarks set for major regional shopping centers. An expansion of its luxury retail offerings is underway, with the completion of a new 3,752-square-metre luxury mall at Victoria Wharf. High-end brands like Burberry, Louis Vuitton, Gucci, Zegna, Versace, and Rolex have already set up shop, with the remaining tenants expected to open by the end of October 2026.
Looking ahead, the V&A Waterfront is poised for further development. Authorities have approved an additional 440,000 square metres of development rights, which will include a first phase of 200,000 square metres dedicated to mixed-use development. This expansion will feature residential properties, hotels, offices, and retail spaces, with at least 10% of the residential units earmarked for affordable housing. A potential second phase could see an additional 240,000 square metres developed, pending a traffic impact assessment, with plans for at least half of this space to be used for residential purposes.
Among the upcoming projects are 160 built-to-rent apartments set to open in March 2027 and a 142-room Cape Town EDITION hotel scheduled for an October 2026 opening. These developments are expected to bolster the V&A Waterfront’s contribution to its owner’s financial performance, with operating profits projected to grow by double digits in FY2027. The continued expansion and development initiatives underscore the precinct’s role as a key player in Cape Town’s economic landscape.