Day zero and political instability drastically influenced the property market from a holistic perspective last year, even more so was the effect and decline it had on the holiday rental market. The thought of water restrictions whilst being on holiday deterred many local and international visitors, and it is estimated, according to figures from 18 of the Western Cape’s top hotels, income in January and December of the 2017/18 season was 10% to 15% lower than it was last year.
As the rain started to return to our shores and gradually started filling our dams the reality of day zero became less and less of an immediate threat. Dam levels have risen by 4% since last week with the current storage capacity at 74%.
Although Cape Town is still facing serious water restrictions and Government continues to urge residents to save as much water as possible according to the City of Cape Town water restrictions and tariffs will be lowered from Level 6 to Level 5 on 1 October 2018, due to the encouraging dam recovery and ongoing conservation efforts by Capetonians.
We have already started noticing an increased and rejuvenated interest in Cape Town for the upcoming festive season and predict demand returning to this beautiful city and province.
What’s interesting to take note of is the amazing efforts by property owners over the past few months to equip their properties with sustainable and water saving systems. Not only was it imperative that residents of this city made serious efforts to reduce their consumption but we’ve noticed an increase in demand from visitors and tenants alike to stay in homes with green solutions.
This feeds a cycle of continuous reinvestment in property and an implementation strategy aimed at sustainable living. If this can become common practice in our city we’ll undoubtedly influence other African cities and play a major part in the usage of our resources during holiday season.
Rentals Operations Manager
Harcourts Maynard Burgoyne