The V&A Waterfront in Cape Town has demonstrated its resilience as a prominent tourist and retail hub, achieving R11.3 billion in sales during the latest financial year. Retail sales in the area saw a 6.2% increase in FY2026, which translates to an average monthly revenue of R942 million. This impressive performance underscores the appeal of the Waterfront, a major destination for both tourists and shoppers in South Africa.
The uptick in sales is largely attributed to a surge in visitor numbers, with the V&A Waterfront experiencing 27 million visits over the year, marking a 7% increase from the previous period. The growth in foot traffic was bolstered by a rise in both domestic and international tourists, evidenced by increased international arrivals at Cape Town International Airport. Additionally, the Waterfront maintained a remarkably low vacancy rate of just 0.9%, further highlighting its robust retail environment, which remains well above the benchmark for major regional shopping centers.
Enhancing its allure, the V&A Waterfront is expanding its luxury retail offerings. A new luxury mall, spanning 3,752 square meters at Victoria Wharf, has been completed, housing prestigious brands such as Burberry, Louis Vuitton, Gucci, Zegna, Versace, and Rolex. The remaining tenants are anticipated to open their doors by the end of October 2026, adding to the precinct’s high-end shopping experience.
Looking ahead, the V&A Waterfront has ambitious expansion plans with approved development rights for an additional 440,000 square meters. The first phase will focus on 200,000 square meters of mixed-use development, featuring residential units, hotels, offices, and retail spaces. Notably, at least 10% of the new residential properties will be dedicated to affordable housing. A second phase, contingent on a traffic impact assessment, could see a further 240,000 square meters developed, with at least half earmarked for residential use.
Other developments in the pipeline include 160 built-to-rent apartments set to open in March 2027 and a new 142-room Cape Town EDITION hotel scheduled for an October 2026 launch. As these projects come to fruition, the V&A Waterfront is anticipated to continue playing a pivotal role in driving its owner’s financial success, with expectations of double-digit growth in operating profit in FY2027.