Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Cape Town's property market is included in our pack
Cape Town was named the Best City in the World by Time Out in 2025, which naturally raises questions about whether running an Airbnb there makes financial sense.
This guide covers everything you need to know about Airbnb profitability in Cape Town in 2026, from current regulations and nightly rates to seasonal revenue swings and neighborhood saturation.
We update this article regularly to reflect the latest data on Cape Town's short-term rental market and current housing prices.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cape Town.
Insights
- Cape Town has roughly 30,700 active short-term rental listings in 2026, making it one of Africa's most competitive Airbnb markets, yet typical occupancy sits at only 63%.
- One-bedroom apartments dominate 56% of Cape Town's Airbnb supply, meaning this segment is crowded and median earnings sit below the market average.
- The December to January festive season can generate two to three months' worth of normal revenue in just four to six weeks for well-positioned listings near beaches or Table Mountain.
- Body corporate rules, not city regulations, are the main barrier for apartment owners in Sea Point, Green Point, and De Waterkant looking to run Airbnbs in 2026.
- Cape Town's average nightly rate is around R2,600 ($145/€135) in 2026, but luxury villas in Camps Bay and Clifton can command R12,000 or more per night during peak season.
- Backup power (inverters or UPS systems) has become near-essential for Cape Town Airbnb hosts due to load-shedding concerns, affecting both guest reviews and occupancy rates.
- Top-performing hosts in Cape Town achieve 70% to 80% annual occupancy versus 55% to 63% for average hosts, largely due to professional photos, fast response times, and dynamic pricing.
- Cape Town International Airport welcomed 10.4 million passengers in 2024, including 3 million international arrivals, confirming strong tourism demand heading into 2026.
- The Cape Town Cycle Tour (March 8, 2026) and Two Oceans Marathon (April 11-12, 2026) create weekend booking spikes where nightly rates can jump 50% to 100% above normal.
- VAT registration becomes compulsory for Cape Town Airbnb hosts once taxable supplies exceed R1 million in any rolling 12-month period, affecting multi-property scaling strategies.
Can I legally run an Airbnb in Cape Town in 2026?
Is short-term renting allowed in Cape Town in 2026?
As of the first half of 2026, short-term renting is generally allowed in Cape Town, though what you can do depends on your property's zoning and whether you live in a sectional title building with specific rules.
The main legal framework governing short-term rentals is the Municipal Planning By-law (2015), which permits short-term letting from a house or flat for periods not exceeding 30 consecutive days for the same guest.
The most important condition Cape Town Airbnb hosts must comply with is ensuring their building's body corporate rules actually permit short-term letting, since many sectional title schemes have adopted restrictions or outright bans.
For properties crossing into more commercial accommodation uses (like operating as a de facto guest house), the City may require additional approvals, and properties used primarily for short-term letting may be reclassified from residential to commercial rates under the 2025/26 Rates Policy.
Typical consequences for operating illegally include City legal action following complaints, reclassification to commercial property rates, and body corporate fines for apartment owners.
For a more general view, you can read our article detailing what exactly foreigners can own and buy in South Africa.
If you are an American, you might want to read our blog article detailing the property rights of US citizens in South Africa.
Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in Cape Town as of 2026?
As of the first half of 2026, Cape Town does not impose citywide maximum nights-per-year caps like Amsterdam or London, and there is no universal minimum-stay requirement mandated by the City.
These rules do not differ by property type or host residency status at the municipal level, meaning all property types operate under the same framework where individual guest stays cannot exceed 30 consecutive days.
Since there's no city-mandated annual cap, hosts aren't required to formally track rental nights for the municipality, though they should maintain records for SARS tax purposes.
However, body corporate schemes and HOAs can impose their own minimum stays or annual limits through conduct rules, so apartment owners should check their scheme's specific restrictions before listing.
Do I have to live there, or can I Airbnb a secondary home in Cape Town right now?
Cape Town does not have a primary residence requirement for short-term rental hosts, meaning you can Airbnb a secondary home or investment property without living there yourself.
Owners of secondary homes can legally operate short-term rentals as long as the use complies with zoning definitions and any applicable body corporate or HOA rules.
There are no additional permits specifically required for non-primary residence short-term rentals at the municipal level, though owners should verify their zoning classification and check whether the Rates Policy reclassifies them to commercial accommodation.
The main practical difference between renting a primary residence versus a secondary home is that secondary property owners often face more body corporate scrutiny and may see their rates adjusted to commercial levels.
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Can I run multiple Airbnbs under one name in Cape Town right now?
Running multiple Airbnb listings under one name is legally possible in Cape Town, as there is no municipal cap on the number of properties a single host can operate.
Cape Town does not impose a maximum number of properties that one person or entity can list, unlike cities such as Barcelona or San Francisco where multi-listing hosts face strict limits.
No additional licensing requirements apply specifically to hosts with multiple listings, though scaling increases the likelihood that the City views your operation as commercial accommodation, triggering higher municipal rates.
Multi-property operators should note that body corporates often target portfolio hosts with stricter enforcement, and the Department of Tourism's forthcoming national regulations may introduce limits on multi-listing operators.
Do I need a short-term rental license or a business registration to host in Cape Town as of 2026?
As of the first half of 2026, Cape Town does not operate a dedicated short-term rental license or universal Airbnb permit system like some European and American cities do.
However, hosts earning income from Airbnb must register with SARS for income tax purposes, and VAT registration becomes compulsory once taxable supplies exceed R1 million in any consecutive 12-month period.
If your operation crosses into a defined commercial accommodation use (such as a guest house or B&B), you may need land-use approvals through the City's Development Management Department depending on zoning.
The typical cost of compliance involves tax registration (free) and potential land-use application fees if consent use is required, though most residential hosts operating within the 30-day rule face no upfront licensing costs.
Are there neighborhood bans or restricted zones for Airbnb in Cape Town as of 2026?
As of the first half of 2026, Cape Town does not have citywide neighborhood bans or officially designated restricted zones for Airbnb, but effective restrictions exist building-by-building through body corporate rules.
The neighborhoods with the strictest de facto restrictions are apartment-dense areas like Sea Point, Green Point, De Waterkant, the CBD, Gardens, and Tamboerskloof, where many sectional title buildings have adopted conduct rules prohibiting or limiting short-term letting.
These building-level restrictions exist because body corporates face security concerns, noise complaints, and wear issues from frequent guest turnover, leading trustees to use the STSMA framework to impose their own bans.
We made this infographic to show you how property prices in South Africa compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How much can an Airbnb earn in Cape Town in 2026?
What's the average and median nightly price on Airbnb in Cape Town in 2026?
As of the first half of 2026, the average nightly price (ADR) for a Cape Town Airbnb is approximately R2,600 ($145 USD/€135 EUR), while the median sits closer to R2,300 ($128 USD/€120 EUR) due to heavy one-bedroom apartment concentration.
The typical nightly price range covering roughly 80% of Cape Town listings falls between R1,200 and R5,000 ($67-$278 USD/€62-€260 EUR), with luxury villas pushing well above this band.
The single biggest factor affecting nightly pricing is location relative to the Atlantic Seaboard and Table Mountain views, with Camps Bay, Clifton, and Bantry Bay properties commanding two to four times the rates of listings in the Southern Suburbs.
By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in Cape Town.
How much do nightly prices vary by neighborhood in Cape Town in 2026?
As of the first half of 2026, nightly prices in Cape Town vary dramatically, ranging from around R1,100 ($61 USD/€57 EUR) in value areas like Woodstock and Observatory to R12,000 or more ($667+ USD/€625+ EUR) for luxury villas in Camps Bay and Clifton.
The three neighborhoods with the highest average nightly prices are Clifton at R8,000-R15,000 ($445-$833 USD/€415-€780 EUR), Camps Bay at R5,000-R12,000 ($278-$667 USD/€260-€625 EUR), and Bantry Bay at R4,500-R10,000 ($250-$556 USD/€234-€520 EUR).
The three most affordable neighborhoods are Woodstock at R1,100-R2,200 ($61-$122 USD/€57-€114 EUR), Observatory at R1,200-R2,400 ($67-$133 USD/€62-€125 EUR), and Bloubergstrand at R1,200-R2,800 ($67-$156 USD/€62-€145 EUR), though these areas still attract steady bookings from budget travelers and digital nomads seeking authentic local experiences.
What's the typical occupancy rate in Cape Town in 2026?
As of the first half of 2026, the typical occupancy rate for Airbnb listings in Cape Town sits at approximately 63%, which reflects a blend of high summer demand and softer winter months.
The realistic occupancy range covering most Cape Town listings falls between 50% and 75%, with well-located apartments in Sea Point and Green Point often achieving the higher end year-round.
Cape Town's 63% average occupancy compares favorably to the broader South African market, where secondary cities see 40% to 50%, largely due to Cape Town's status as the country's primary international tourism gateway.
The single biggest factor for achieving above-average occupancy is professional listing optimization: quality photography, Superhost status, fast response times, and dynamic pricing that adjusts for seasonal swings.
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What's the average monthly revenue per listing in Cape Town in 2026?
As of the first half of 2026, the average monthly revenue per Airbnb listing in Cape Town is approximately R19,500 ($1,083 USD/€1,010 EUR), based on annual revenue of around $14,100 USD.
The realistic monthly revenue range covering roughly 80% of listings falls between R10,000 and R35,000 ($556-$1,944 USD/€520-€1,820 EUR), with the wide spread reflecting differences in property type, location, and host professionalism.
Top-performing listings in Sea Point or the Southern Suburbs can achieve R40,000-R80,000 monthly ($2,222-$4,444 USD/€2,080-€4,160 EUR), while luxury villas in Camps Bay during peak season can exceed R150,000. A four-bedroom villa earning R200,000/month represents about R6,500/night at full occupancy.
Finally, note that we give here all the information you need to buy and rent out a property in Cape Town.
What's the typical low-season vs high-season monthly revenue in Cape Town in 2026?
As of the first half of 2026, typical monthly revenue during high season (December-February) ranges from R30,000-R60,000 ($1,667-$3,333 USD/€1,560-€3,120 EUR) for apartments and up to R150,000 or more ($8,333+ USD/€7,800+ EUR) for villas, while low season (May-August) drops to R10,000-R25,000 ($556-$1,389 USD/€520-€1,300 EUR).
Cape Town's high season runs from late November through February, with December and January being the absolute peak, while low season covers May through August when both international and domestic tourism slow considerably.
What's a realistic Airbnb monthly expense range in Cape Town in 2026?
As of the first half of 2026, realistic monthly operating expenses range from R9,000-R22,000 ($500-$1,222 USD/€468-€1,144 EUR) for apartments, R12,000-R30,000 ($667-$1,667 USD/€624-€1,560 EUR) for townhouses, and R18,000-R70,000 ($1,000-$3,889 USD/€936-€3,640 EUR) for houses and villas.
The single largest expense category for most Cape Town Airbnb hosts is cleaning and turnover costs, typically running R400-R1,200 per turnover ($22-$67 USD/€21-€62 EUR), representing 15%-25% of gross revenue for high-turnover properties.
Hosts should typically expect to spend 45%-65% of gross revenue on operating expenses, with professionally managed properties at the higher end and hands-on owner-operators at the lower end.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Cape Town.
What's realistic monthly net profit and profit per available night for Airbnb in Cape Town in 2026?
As of the first half of 2026, realistic monthly net profit ranges from R4,000-R15,000 ($222-$833 USD/€208-€780 EUR) for typical apartments and townhouses, translating to profit per available night of approximately R130-R500 ($7-$28 USD/€7-€26 EUR).
The realistic monthly net profit range covering most listings falls between R2,000 and R25,000 ($111-$1,389 USD/€104-€1,300 EUR), with well-optimized premium properties achieving the upper end and poorly positioned listings sometimes operating at break-even during winter.
Net profit margins for Cape Town Airbnb hosts typically range from 20%-45% of gross revenue, with owner-operators achieving higher margins than those using professional management.
The break-even occupancy rate for a typical listing sits around 35%-45%, meaning hosts need 11-14 nights per month just to cover operating expenses before generating profit.
In our property pack covering the real estate market in Cape Town, we explain the best strategies to improve your cashflows.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How competitive is Airbnb in Cape Town as of 2026?
How many active Airbnb listings are in Cape Town as of 2026?
As of the first half of 2026, Cape Town has approximately 30,700 active short-term rental listings across Airbnb and Vrbo combined, making it one of Africa's most competitive STR markets.
This represents continued growth, with supply expanding steadily since the pandemic recovery, driven by strong tourism demand, the "Best City in the World" recognition in 2025, and relatively permissive regulations compared to European cities with strict caps.
Which neighborhoods are most saturated in Cape Town as of 2026?
As of the first half of 2026, the most saturated neighborhoods for Airbnb are Sea Point, Green Point, De Waterkant, the CBD, Gardens, and Tamboerskloof in the City Bowl, along with Camps Bay and Clifton on the Atlantic Seaboard.
These neighborhoods are saturated because they combine walkability to restaurants and the V&A Waterfront, proximity to beaches and Table Mountain, high apartment concentrations, and the fact that visitors overwhelmingly want to stay in these areas without needing a car.
Relatively undersaturated neighborhoods offering better opportunities include Rondebosch, Newlands, and Constantia in the Southern Suburbs for families, Woodstock and Observatory for creatives, and Muizenberg and Kalk Bay on the False Bay coast for surfers and digital nomads seeking longer stays.
What local events spike demand in Cape Town in 2026?
As of the first half of 2026, the main events that spike Airbnb demand are the Cape Town Cycle Tour (March 8), the Two Oceans Marathon (April 11-12), the Cape Town International Jazz Festival (March 27-28), and the Absa Cape Epic mountain bike race (March 15-22).
During peak events, Cape Town hosts typically see booking rates increase 30%-50% and nightly rates jump 50%-100% above normal, with the Cycle Tour weekend and Jazz Festival being particularly strong for central properties.
Hosts should adjust pricing and availability 60-90 days before major events, with serious operators blocking dates and setting premium rates as soon as event dates are announced.
What occupancy differences exist between top and average hosts in Cape Town in 2026?
As of the first half of 2026, top-performing hosts achieve annual occupancy rates of 70%-80%, reaching 85%-95% during peak summer weeks, which represents a significant premium over the market.
Average hosts typically see 55%-63% occupancy, meaning top performers book 15-25 percentage points more nights per year, translating directly to substantially higher annual revenue.
New hosts typically take 6-12 months to reach top-performer levels, depending on review velocity, listing quality, pricing strategy, and whether they achieve Superhost status within the first year.
We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in Cape Town.
What amenities do nearly all competitors offer in Cape Town right now?
Nearly all competitive Cape Town listings offer Wi-Fi/internet (about 98%), a kitchen (about 89%), parking (about 78%), and a TV (about 75%), making these baseline expectations rather than differentiators.
Cape Town-specific amenities that have become near-essential include backup power solutions (inverters or UPS) due to load-shedding, strong security features (smart locks, secure parking, clear entry instructions), and outdoor living spaces like balconies, patios, and braai areas.
Properties with swimming pools, mountain or ocean views, and walking distance to the Sea Point Promenade or Table Mountain trailheads command measurably higher nightly rates and occupancy.
Which price points are most crowded, and where's the "white space" for new hosts in Cape Town right now?
The most crowded price range is R1,500-R3,000 per night ($83-$167 USD/€78-€156 EUR), corresponding to the dominant one-bedroom apartment segment that makes up 56% of total supply.
White space opportunities exist at the lower end for budget travelers (R800-R1,200/night) in Woodstock and Observatory, and at the family-sized segment (R4,500-R8,000/night) in underserved neighborhoods like Rondebosch, Newlands, and Constantia.
Property characteristics for competing in underserved segments include 2-3 bedrooms with outdoor space and parking, pet-friendly policies (rare in Cape Town), dedicated workstations for digital nomads, and positioning for 30-plus day stays during winter months.
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What property works best for Airbnb demand in Cape Town right now?
What bedroom count gets the most bookings in Cape Town as of 2026?
As of the first half of 2026, one-bedroom properties get the most bookings in Cape Town, followed by two-bedroom units, aligning with the city's visitor profile of couples, solo travelers, and small friend groups.
The booking rate breakdown shows one-bedroom at 56% of supply and bookings, two-bedroom at 24%, three-bedroom at 11%, and studios plus larger properties making up the remainder.
One-bedrooms perform best because Cape Town attracts many couples and solo travelers seeking short breaks who prioritize location and price over space, making compact Sea Point and Green Point apartments the sweet spot for consistent demand.
What property type performs best in Cape Town in 2026?
As of the first half of 2026, apartments perform best for consistent year-round occupancy, while houses and villas generate the highest revenue during peak season but experience more volatility in winter months.
Occupancy rates by property type show apartments in walkable areas achieving 65%-75% annual occupancy, townhouses reaching 55%-65%, freestanding houses at 50%-65% depending on location, and luxury villas ranging 40%-70% based on pricing strategy and long-stay willingness.
Apartments outperform for occupancy because they dominate supply where tourists want to stay, offer the walkability short-stay visitors prioritize, and attract steadier demand from business travelers and digital nomads who fill gaps between tourist peaks.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Cape Town, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We aim to be fully transparent, so below we've listed the authoritative sources we used and explained how we used them.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| City of Cape Town Municipal Planning By-law (2015) | The City's actual planning law governing land use and what's allowed on residential property. | We used it to anchor what short-term letting can legally look like. We treated this as the highest-priority rule-set whenever other sources summarized the law. |
| City of Cape Town Development Management Scheme | The City's official zoning-scheme explainer and points to the right schedules for land use. | We used it to confirm where zoning and permitted uses come from. We used it to frame when residential use crosses into commercial accommodation. |
| STSMA Regulations (Government Gazette) | A national regulation published in the Government Gazette governing sectional title schemes. | We used it to explain why body corporates can restrict short-term lets via scheme rules. We used it to separate City legality from building-level permission. |
| CSOS Consolidated Practice Directives (2025) | CSOS is the statutory ombud for community schemes; its directives shape how disputes are handled. | We used it to support practical enforcement realities for apartments and HOAs. We used it as a credibility check on building-level restrictions. |
| Airbnb South Africa Tax Guide (2024) | Airbnb's official tax guidance for South Africa, aligned to SARS rules and thresholds. | We used it for VAT-registration thresholds and basic host tax responsibilities. We cross-checked VAT numbers against common SARS thresholds. |
| AirDNA Cape Town Market Overview | A widely used STR research platform with transparent core market metrics covering Airbnb and Vrbo. | We used it for supply counts, occupancy rates, ADR, and annual revenue estimates. We treated it as the main quantitative backbone. |
| Statistics South Africa CPI (November 2025) | South Africa's official inflation release used for policy and contracts. | We used it to anchor cost pressures for utilities, services, cleaning, and maintenance in our expense estimates. |
| South African Reserve Bank MPC Statement (November 2025) | The central bank's official policy statement, including the repo rate affecting financing costs. | We used it to frame interest-rate context for property financing. We used it to ensure realistic cost assumptions for leveraged properties. |
| Statistics South Africa Tourist Accommodation Survey | An official recurring survey of South Africa's short-stay accommodation industry. | We used it as a reality check on demand and price trends. We used it to triangulate STR seasonality with broader lodging performance. |
| Statistics South Africa International Tourism (P0350) | An official release based on border and port-of-entry data tracking visitor arrivals. | We used it to ground the tourism engine feeding Cape Town short-term stays. We used it to avoid relying on anecdotal visitor trends. |
| SA Government Tourism Growth Figures (February 2025) | An official government statement explicitly referencing Stats SA tourism data. | We used it to confirm tourism recovery direction heading into 2026. We used it as a secondary cross-check for the Stats SA series. |
| National Department of Tourism Bi-Annual Report (Jul-Dec 2024) | An official performance report consolidating major tourism indicators. | We used it to triangulate global and national tourism context impacting Cape Town demand. |
| Wesgro Western Cape Tourism Performance Report | Wesgro is the Western Cape's official trade and investment promotion agency citing official datasets. | We used it to localize tourism demand to Cape Town rather than relying only on national stats. |
| FNB Property Barometer | A major bank's housing-market research, widely referenced in South Africa for price trends. | We used it for the housing-market backdrop. We used it to keep purchase-price assumptions aligned with mainstream research. |
| News24 Cape Town Airbnb Rules Explainer | A major national publisher that references City planning rules in its coverage. | We used it only as a secondary source to sanity-check interpretation. We did not use it as the primary legal basis. |
| Hostaway South Africa Airbnb Rules Guide (2026) | A comprehensive compliance guide from a major vacation rental management software provider. | We used it to cross-reference legal interpretations and confirm the layered regulatory framework. |
| Cape Town Cycle Tour Official Website | The official source for the world's largest individually timed cycle race held annually in Cape Town. | We used it for confirmed 2026 event dates and understanding demand spike timing for hosts near the route. |
| Two Oceans Marathon Official Website | The official source for one of South Africa's most prestigious running events. | We used it for 2026 event dates and incorporated the event's economic impact data. |
| Cape Town International Jazz Festival | The official website for Africa's largest jazz festival held at the CTICC. | We used it for 2026 festival dates and factored in its accommodation demand impact for central properties. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Africa. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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