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Airbnb hosts in Cape Town may face a threefold increase in property rates
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Getaway
getaway.co.za

Airbnb hosts in Cape Town may face a threefold increase in property rates

Property owners renting out accommodations for short-term stays in Cape Town may face a significant increase in municipal property rates, which is set to take effect from July 2027 under a proposed new by-law.

The City of Cape Town plans to classify properties rented out for more than 50% of their annual capacity per room as commercial accommodation rather than residential property. This could lead to a substantial rise in monthly payments for hosts who actively use their properties for short-term rentals for most of the year.

For instance, the publication GroundUp used the City's rate calculator to compare central city property valued at 2.8 million rand. Current rates for residential property are approximately 1274 rand per month, whereas in the commercial category, they reach 3945 rand per month. This represents an increase in expenses of 2671 rand monthly, equivalent to over 32,000 rand annually.

The proposed regulations also require all properties listed on booking platforms to register with the City and display the municipality's short-term rental registration number in their listings. Furthermore, booking platforms, owners, and operators must provide information regarding the availability and occupancy of the properties.

However, not all hosts will be affected equally. The City states that commercial rates will not apply to those who occasionally rent out part of their home for extra income, and properties rented out for no more than 50% of annual capacity may remain classified as residential.

These changes come against the backdrop of continued growth in the short-term rental market in Cape Town. According to data from Inside Airbnb, cited by GroundUp, there are over 27,000 Airbnb listings in the city, nearly 6,000 of which are located in the city center.

The City asserts that the goal of the proposed by-law is to ensure that properties used as commercial accommodation pay the appropriate taxes while continuing to support short-term rentals as part of Cape Town's tourism economy. For hosts, the deadline to monitor is October 5, 2026, when the public comment period for the draft by-law concludes.

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Price hikes do not reduce demand for large homes: 53% of buyers in Delhi-NCR prefer 3BHK
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www.aajtak.in

Price hikes do not reduce demand for large homes: 53% of buyers in Delhi-NCR prefer 3BHK

Demand for spacious housing continues to grow amid rising prices. According to a consumer sentiment survey conducted by Enarock from January to June 2026, 48% of buyers aim to purchase a three-bedroom home (3BHK), while 38% prefer two-bedroom apartments (2BHK). Furthermore, the demand for 4BHK and larger homes has increased by approximately 5%.

Strong demand for large homes is also observed in the Delhi-NCR region, where 53% of respondents chose 3BHK. Similar figures were recorded in Ahmedabad (57%), Chennai (53%), and Hyderabad (52%).

The growing interest in large homes is reflected in buyers' budgets. 34% of buyers indicated a preference for homes priced between 90 lakh and 1.5 crore rupees, while 27% are targeting housing over 1.5 crore rupees.

Despite the rise in real estate prices, the intention to make a purchase has not completely weakened. 65% of respondents expressed concern about price increases, but 44% stated their intention to continue with their buying plans. Meanwhile, 38% may postpone the purchase for some time, and 18% are considering a long-term deferral or cancellation of the deal.

When the cost exceeds the budget, buyers change their strategy instead of completely abandoning the market. 31% consider renting instead of buying, and 20% plan to look for accommodation in more distant parts of the city. Despite discussions about real estate investment, the primary reason for purchase remains the need for personal residence: 68% are buying homes for personal use, while 32% are doing so for investment purposes.

New projects are also attracting buyer attention: 34% noted a preference for new launches, while 18% prioritized ready-to-move-in housing. The reliability of the developer was the deciding factor when choosing a new project. In the survey, 77% of participants considered the potential for rental income from the property important or very important, and for 67%, future resale value remained significant. Thus, when buying, people consider both the need for residence and future financial value.

Interest in real estate as an investment tool persists: 60% of respondents chose real estate, while 20% preferred the stock market, 11% gold, and 9% fixed deposits.

The survey data demonstrates that despite rising prices, the demand for spacious housing remains high. Although some buyers are postponing purchases or changing locations, a significant number of people continue to follow their housing purchase plans.

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