While it has generally been accepted that semigration and international investors are behind the Western Cape’s booming property market, even small things like a cup of coffee is contributing to the city’s high property prices.
This is according to Janet Lightbody of the Ikon Property Group, who said that the recent explosion of coffee culture – specifically the introduction of high-end coffee shops – has contributed to some properties having their values increased.
When you position a high-end café such as the Seattle Coffee Company in a commercial building, positive spin-offs are substantial, not only for the landlord, but for the neighbouring tenants too, she said.
“Recognised brands such as Seattle Coffee Company add immense value to a building by acting as a draw card and increasing customer footfall for neighbouring stores.”
Lightbody said that tenants such as Seattle Coffee Company can afford generous fit-out budgets and often transform a blank canvass into a superior retail space, an additional advantage for landlords.
“By leveraging group buying power they are able pay competitive rentals and commit to longer tenures,” said Elton Holland director of Ikon Property Group.
“This investment can often result in the landlord’s building grade being re-rated and landlords enjoy strong tenancy covenants – ultimately a win-win scenario.”
Coffee in Cape Town
The South African coffee scene is radically different to what it was t10 years ago, and Cape Town in particular is the focal point of this renaissance, said Iain Evans, publisher of Coffee Magazine.
“South Africa has caught up to global standards and you can now go into a high-end roastery in South Africa and have an experience on par with Melbourne or Vancouver,” he said.
“In the past decade, the industry has grown from a mere 20 roasteries to well over 250 independent roasters in South Africa.
Statistics South Africa has also recorded steady growth in the restaurant and coffee shop sector with year-on- year revenue growth at 4.5%. Cape Town’s ‘coffee capital’ status is further entrenched by the Mother City’s consistent exposure on international travel blogs.”
A case in point is Truth Coffee being voted ‘the best coffee shop in the world’ by the British Telegraph, he said.
- Property Point creates R1bn in procurement opportunities for small businesses
- These areas are holding up the best in Cape Town’s cooling property market
- Petrol price hits another high with 1c/l increase from Wednesday
- Commercial property sector is booming
- Sefisa says electricity price increases will stifle growth in industry