Tourism boom drives economic growth, providing commercial opportunities for property investors in Franschhoek

Tourism is booming in the historic town of Franschhoek, and the renewed interest is driving the demand for residential and commercial properties in the area, says Surina du Toit, Pam Golding Properties branch manager for Wellington, Grabouw, Paarl and Franschhoek.

Following a two-year pandemic-related hiatus, the winelands region has been rebranded as the Valley of Dreams, and named by Time Magazine as one of the “World’s Greatest Places” for 2022. According to Stats SA figures, the number of international arrivals in Cape Town increased by 480% on last year’s figures over the same period, with the number of visitors from the United Kingdom alone almost at 98% of pre-pandemic levels. “Many of the visitors arriving at Cape Town International Airport will make the one-hour drive to Franschhoek to experience some of the world-renowned restaurants, bistros, art galleries, chocolatiers and wine farms in the region,” says Du Toit. Known as South Africa’s culinary capital, Franschhoek is high on the must-see list for many local and international visitors.

Nestled in the Franschhoek Valley, the town offers unrivalled mountain and vineyard views. This, coupled with the appealing laid-back cafe culture, entices many visitors to invest in property in the area, says Jeanine Allen, Pam Golding Properties agent for Franschhoek. Stellenbosch, Paarl and Franschhoek combined form one of the fastest-growing areas for High-Net-Worth-Individuals in the country, according to the Africa Wealth Report, 2022, with many of these buyers semigrating from Gauteng, KwaZulu-Natal and other parts of the country. “The shift to remote working has also driven buyer activity in Franschhoek, with families opting for a country lifestyle and access to excellent schools,” says Allen. Buyers also include overseas “swallows” who opt to spend a portion of the year in Franschhoek as it offers a favourable climate and a range of property types, from boutique and lifestyle farms to historical cottages and five-star guest farms.

“Tourism is a major driver of economic growth in Franschhoek,” says  Du Toit. The completion this year of Train Camp Franschhoek, with its status as an official FINA High Performance Development Centre, will elevate the Western Cape as a global sports tourism destination. Cape Town and the Winelands already attract an annual revenue of over R50 million in sports tourism, says Train Camp’s License Principal, Nick Ochse. This new facility will be a boon to the local economy, attracting sports tourists from Africa, Europe and the USA.

A renovation and reconfiguration of existing infrastructure on the 12-hectare campus of Franschhoek High School in the heart of the village, this centre will provide a host of services to attract athletes across numerous sporting disciplines. “There is no doubt that Train Camp Franschhoek will positively impact the village,” says Du Toit. Not only will it create new jobs that will bring more permanent residents to the village thus providing new customers for local businesses, it will help even out the historic seasonality of Franschhoek’s tourism economy.”

With this economic boost and boom in tourism, the demand for business opportunities in the town is expected to soar, says Doug Gurr, Pam Golding Properties agent for the area. “Commercial properties seldom come onto the market, so the current listing by Pam Golding Properties of a R27.5 million commercial property that includes a four-bedroom residential unit with guest house rights, is a rare opportunity to invest in one of the world’s best places to visit.”

Set on about 6,740 square metres, the property comprises five separate units: a garden restaurant, a vacant building with generator ideal for a complementary eatery, a spa and wellness centre, a laundry and the residential unit. The iconic wine tram, arguably the best way to explore the valley’s wine farms, rolls past the verdant garden. There are four automated fountains on the property, and a 25 000 litre per hour borehole ensures the gardens remain lush all year round.

“This well-known property, with some tenants already in place, offers numerous uses and is ideally located at the gateway to the village. It presents a rare opportunity for an investor or buyer wanting to add to Franschhoek’s extensive offering at a time when the newly dubbed Valley of Dreams is enjoying such a welcome revival,” says Gurr.

Find out more: www.pamgolding.co.za/property-details/1137-m2-commercial-retail-property-for-sale-franschhoek/fwi1575825

Posted by The Know - Pam Golding Properties