The latest financial year has been a prosperous one for retailers at Cape Town’s V&A Waterfront, with sales reaching R11.3 billion. This bustling shopping and tourist hub in South Africa demonstrated its robust economic vitality, as retail sales climbed by 6.2% during FY2026. This equates to an impressive average of about R942 million in sales each month. It’s important to note that these figures reflect the total purchases made across the precinct rather than direct revenue to the Waterfront itself.
The surge in retail sales was bolstered by a significant rise in visitor numbers, with the V&A Waterfront welcoming 27 million visits throughout FY2026, marking a 7% increase from the previous year. This uptick was largely driven by a boost in both domestic and international tourism, as Cape Town International Airport reported a rise in international arrivals. Despite its immense popularity, the Waterfront managed to keep its vacancy rate impressively low at just 0.9%, while its retail trading performance consistently outperformed benchmarks set for major regional shopping centres.
Adding to its allure, the Waterfront has expanded its luxury shopping options with the completion of a 3,752-square-metre luxury mall at Victoria Wharf. High-end brands such as Burberry, Louis Vuitton, Gucci, Zegna, Versace, and Rolex have already established their presence there. The remaining retail spaces are anticipated to be occupied by the end of October 2026. Looking ahead, the Waterfront is set to expand even further, with authorities granting approval for an additional 440,000 square metres of development rights.
The initial phase of expansion is set to introduce 200,000 square metres of mixed-use development, comprising residential properties, hotels, offices, and retail spaces, with a commitment to allocate at least 10% of the residential component to affordable housing. A potential second phase could add another 240,000 square metres, contingent upon a traffic impact assessment, with at least half earmarked for residential use. Additionally, 160 built-to-rent apartments are slated to open by March 2027, and a 142-room Cape Town EDITION hotel is expected to welcome guests by October 2026.
With these developments, the V&A Waterfront is poised to remain a significant asset to its owner’s portfolio, with operating profits projected to grow by double digits in FY2027. This continued evolution underscores the Waterfront’s role as a cornerstone of Cape Town’s retail and tourism landscape, promising further economic contributions in the years to come.