Property

New property development in Cape Town

Kirsten Minnaar • 29 May 2025

A new property development in Cape Town’s central business district, Lilly May, is aimed at investors and local residents with prices starting from R1.75 million.

The Western Cape, particularly Cape Town, is a hotspot for locals, foreigners and property investors. This is evidenced by the province’s relatively high rental and home prices.

As of the final quarter of 2024, the Western Cape had the highest average rental price in the country, at an average of R11,141, according to Payprop.

According to Ooba Home Loans, the province also has the most expensive houses in the country, costing an average of R1,610,000.

The gap between house prices in the Western Cape and the second most expensive province, KwaZulu-Natal, is a whopping R560,000.

This landscape has created an attractive environment for property developers like Revo, which is behind Lilly May, to invest in Cape Town’s property market.

They explained that, with South Africa’s GDP growth expected to stabilise around 2.5% and the potential for interest rate cuts, Cape Town offers a promising economic environment for local and international tourists and investors.

Cape Town’s city centre is forecasted to see capital growth well over 10%, possibly between 12% and 14% in 2025, signalling strong demand in the urban core.

It is also ranked as one of the Top Cities in the World by TimeOut magazine. So, it’s no wonder the city is a cultural and economic hub, drawing in local and international buyers eager to invest.

Additionally, the rise in international visitors and digital nomads, taking advantage of the growth in direct flights to the city, has led to a booming hospitality sector.

This fuels the demand for more buy-to-let investments and the development of professionally managed short-stay accommodations, which offer higher returns than traditional rentals.

In 2024, property transactions linked to digital nomads reached R4.8 billion, with some single-day sales exceeding R300 million.

Lilly May

Guy Gordon, Director at Chapter Developments, explained that Cape Town, with its stunning views and vibrant lifestyle, attracts those seeking high-end living.

“Lilly May, a new development in Cape Town’s central business district and landmark in the making, is positioned in one of Cape Town’s most dynamic districts, blending heritage, culture, and contemporary luxury,” Gordon said.

“Inspired by Art Deco grandeur and the city’s evolving energy, Lilly May is designed for those who appreciate bold expression, refined aesthetics, and curated living.”

Lilly May, located at 17 Buitenkant Street, Cape Town, offers a selection of 54 studio apartments and six one-bedroom apartments.

Sales go live at noon on Thursday, 12 June, and prices start at R1.75 million (including VAT). The development is set for completion in Q1 2027.

Projected rentals range from R28,800 to R33,600 a month. This offers up to 11,66% net rental yield, the group explained.

The apartments are fully managed, with optional furniture packs designed by Maison & Marble for hassle-free ownership.

The area boasts urban living and natural beauty, with stunning views of Table Mountain. Amenities like cafés, restaurants, retail shops, and cultural attractions surround Lilly May.

Its central location in the city also offers easy access to transport links, which makes it ideal for professionals and investors.

Residents will be able to enjoy a fully serviced building with a rooftop terrace with city views, a vibrant ground-floor café and a bar. They will also have exclusive access to a private rooftop pool, entertainment deck and clubhouse.

Tourism and the growth in international visitors in Cape Town have been catalysts for increased foreign investment, higher property prices, and a vibrant hospitality market.

This has transformed the city into a global investment hotspot, driven substantial property development, and boosted the local economy.

“The rental market is surging, especially for properties like Lilly May on Buitenkant Street, close to tourist hotspots like the V&A Waterfront and Table Mountain,” said Emanuel Germanis, CEO and founder of Revo Property.

According to Germanis, this makes the city centre an attractive opportunity for investors who want to earn rental income.

“As a result, we’re seeing strong demand for residential units in the City Bowl, with new CBD developments attracting significant interest the moment they’re released,” Gordon added.

Positioned well within the Urban Development Zone (UDZ) and qualifying for the Section 13sex Tax Incentive, Lilly May offers investors powerful tax benefits.

Germanis said that the growth in international arrivals, alongside the city’s rising popularity as a vacation and business destination, has propelled the demand within the hospitality sector.

“We’re seeing occupancy rates rise steadily year on year, further cementing the viability of these types of investments,” he said.

“Lilly May’s prime location, combined with Cape Town’s booming tourism and business travel sectors, makes it a prime opportunity for investors looking to capitalise on this trend.”