The V&A Waterfront in Cape Town has reported an impressive R11.3 billion in retail sales for the most recent financial year, underlining its status as a premier tourist and shopping hub in South Africa. The sales figures reflect a 6.2% increase from the previous year, translating to roughly R942 million in sales each month. This growth is attributed to the total purchases made by visitors at the precinct’s retailers, rather than direct revenue to the Waterfront itself.
A key factor driving this robust performance was a surge in visitor numbers, with 27 million visits recorded in FY2026—a 7% rise from the prior year. This influx was fueled by increased domestic and international tourism, bolstered by higher international arrivals at the nearby Cape Town International Airport. Despite the bustling activity, the precinct has maintained a remarkably low vacancy rate of just 0.9%, with its retail trading figures significantly outperforming the benchmarks set for major regional shopping centers.
The V&A Waterfront is further enhancing its allure with the completion of a new 3,752-square-metre luxury mall at Victoria Wharf. High-end brands such as Burberry, Louis Vuitton, Gucci, Zegna, Versace, and Rolex have already opened their doors, with additional tenants anticipated to launch by October 2026. In a bid to continue this growth trajectory, the Waterfront has secured approval for an expansive development plan comprising 440,000 square metres. The initial phase will involve 200,000 square metres of mixed-use spaces, including residential units, hotels, offices, and retail areas, with a minimum of 10% of the residential offerings dedicated to affordable housing.
Future expansion could potentially add another 240,000 square metres, contingent on a traffic impact assessment, with at least half of this space earmarked for residential purposes. Among the exciting projects in the pipeline are 160 built-to-rent apartments set to open in March 2027 and a 142-room Cape Town EDITION hotel scheduled for October 2026.
As the V&A Waterfront continues to evolve, it remains a critical asset for its owner, with projections indicating a double-digit increase in operating profit for FY2027. This growth underscores the Waterfront’s ongoing significance in both the retail and tourism sectors.