Holiday accommodation is very popular in the Cape's Western Seaboard. Find out from local property experts where the best place to rent is.
What types of properties are most in demand for holiday rentals?
Luxury accommodation on the beachfront (or within close proximity) with a view of Table Mountain and/or the ocean, a swimming pool and good security with access control generates the healthiest returns. The enquiries we receive are mainly for luxury self-catering apartments with two bedrooms and two bathrooms in the Blouberg area, the average occupancy of which is 69% over a 12-month period. Three-bedroom apartments are also very popular but, with the size-related increase in price, the demand tends to be seasonal. Short-term rentals not only provide superior return on investment, but the owner is also able make use of the property when required.
Ivor Potgieter: Owner, Blouberg Holiday Rentals
What attracts visitors to rent in the area?
Affordable accommodation with easy access to long unspoilt beaches, short drives into the Winelands and countryside, trips up the West Coast to great seafood restaurants are some of the lifestyle attractions to renting on the Western Seaboard. Businesspeople find the location suitable for commuting to business destinations such as the CBD, Tygervalley and Claremont, as well as having two golf courses on their doorstep. For the adventurous, the lure is the fantastic summer kiteboarding, numerous hiking trails and mountain bike routes located on the Durbanville Valley wine farms, which not only offer wine tasting but also have restaurants to tantalise and satisfy the hungry after vigorous exercise.
What kind of return can investors expect?
Buyers of investment properties wanting to maximise the return need to be fully aware of the importance of location and occupancy rates when buying into apartment blocks. Holidaymakers are prepared to pay a premium for sea and Table Mountain views, access to all amenities, MyCiTi bus routes and shopping. The yields achieved during the holiday season starting in October and ending in March make it a viable option to leaving time in the quieter winter months to attend to maintenance. Gross rental yields of between 8% and 10% are achievable if real estate professionals active in the area are involved in the decision-making.
Norman Gore: Property professional, PropertyCoZa Blouberg
This article originally appeared in Neighbourhood, Sunday Times.
Take a spectacular tour through the Western Seaboard here: