Top 30 Best Places in Western Cape, South Africa to Invest in Airbnb & Short-Term Rentals (2025)

Source: AirROI

Last updated: 2025-07-01

Unlock high-ROI opportunities in Western Cape, South Africa‘s booming short-term rental (STR) market. This 2025 Airbnb investment guide from AirROI leverages cutting-edge Airbnb data analytics to pinpoint the most profitable cities for Airbnb and vacation rental entrepreneurs. Whether you’re scaling your portfolio or making your first STR investment, discover markets with strong rental demand, high revenue potential, and favorable regulations. We are committed to providing trustworthy insights based on comprehensive market analysis, and you can learn more about our rigorous approach to data accuracy.

Our STR market analysis dives deep into key performance indicators like monthly revenue, average daily rates (ADR), occupancy trends, property counts, and regulatory landscapes across Western Cape, South Africa. We go beyond simple rankings to provide the context you need for informed investment decisions using reliable Airbnb data.

Explore the data-driven insights below to identify the premier short-term rental investment hotspots and high ROI Airbnb markets in Western Cape, South Africa for 2025.

Top Short-Term Rental Markets in Western Cape, South Africa

Rank:#1Market:Cape TownCountry:South AfricaProperties:12,510Monthly Revenue:$1777.66Daily Rate (ADR):$181.76Occupancy:47.29%Regulation:Low
Rank:#2Market:GeorgeCountry:South AfricaProperties:4,988Monthly Revenue:$949.54Daily Rate (ADR):$137.40Occupancy:33.06%Regulation:Low
Rank:#3Market:Overstrand Local MunicipalityCountry:South AfricaProperties:1,903Monthly Revenue:$1314.61Daily Rate (ADR):$171.65Occupancy:35.72%Regulation:Low
Rank:#4Market:Stellenbosch Local MunicipalityCountry:South AfricaProperties:1,287Monthly Revenue:$1863.52Daily Rate (ADR):$181.80Occupancy:45.42%Regulation:Low
Rank:#5Market:Saldanha Bay Local MunicipalityCountry:South AfricaProperties:1,245Monthly Revenue:$1112.36Daily Rate (ADR):$147.05Occupancy:31.99%Regulation:Low
Rank:#6Market:MilnertonCountry:South AfricaProperties:578Monthly Revenue:$931.05Daily Rate (ADR):$117.03Occupancy:42.34%Regulation:Low
Rank:#7Market:Hout BayCountry:South AfricaProperties:510Monthly Revenue:$1690.20Daily Rate (ADR):$196.07Occupancy:43.63%Regulation:Low
Rank:#8Market:Langeberg Local MunicipalityCountry:South AfricaProperties:445Monthly Revenue:$994.15Daily Rate (ADR):$118.53Occupancy:33.01%Regulation:Low
Rank:#9Market:Drakenstein Local MunicipalityCountry:South AfricaProperties:425Monthly Revenue:$1142.87Daily Rate (ADR):$145.63Occupancy:35.75%Regulation:Low
Rank:#10Market:Cape Agulhas Local MunicipalityCountry:South AfricaProperties:421Monthly Revenue:$701.58Daily Rate (ADR):$127.39Occupancy:27.57%Regulation:Low
Rank:#11Market:Somerset WestCountry:South AfricaProperties:419Monthly Revenue:$1059.50Daily Rate (ADR):$119.37Occupancy:42.32%Regulation:Low
Rank:#12Market:Swartland Local MunicipalityCountry:South AfricaProperties:399Monthly Revenue:$1131.08Daily Rate (ADR):$161.79Occupancy:29.54%Regulation:Low
Rank:#13Market:BellvilleCountry:South AfricaProperties:310Monthly Revenue:$570.98Daily Rate (ADR):$69.08Occupancy:43.87%Regulation:Low
Rank:#14Market:StrandCountry:South AfricaProperties:289Monthly Revenue:$858.23Daily Rate (ADR):$93.40Occupancy:41.12%Regulation:Low
Rank:#15Market:Theewaterskloof Local MunicipalityCountry:South AfricaProperties:286Monthly Revenue:$963.67Daily Rate (ADR):$108.18Occupancy:33.28%Regulation:Low
Rank:#16Market:Swellendam Local MunicipalityCountry:South AfricaProperties:285Monthly Revenue:$736.43Daily Rate (ADR):$103.40Occupancy:31.85%Regulation:Low
Rank:#17Market:Simon's TownCountry:South AfricaProperties:282Monthly Revenue:$1337.99Daily Rate (ADR):$138.69Occupancy:41.95%Regulation:Low
Rank:#18Market:Witzenberg Local MunicipalityCountry:South AfricaProperties:248Monthly Revenue:$1400.45Daily Rate (ADR):$128.17Occupancy:36.44%Regulation:Low
Rank:#19Market:Cederberg Local MunicipalityCountry:South AfricaProperties:244Monthly Revenue:$799.21Daily Rate (ADR):$102.20Occupancy:31.39%Regulation:Low
Rank:#20Market:NoordhoekCountry:South AfricaProperties:244Monthly Revenue:$1652.21Daily Rate (ADR):$222.15Occupancy:42.06%Regulation:Low
Rank:#21Market:Fish HoekCountry:South AfricaProperties:208Monthly Revenue:$1000.68Daily Rate (ADR):$110.66Occupancy:43.58%Regulation:Low
Rank:#22Market:Beaufort West Local MunicipalityCountry:South AfricaProperties:155Monthly Revenue:$272.71Daily Rate (ADR):$53.14Occupancy:23.32%Regulation:Low
Rank:#23Market:DurbanvilleCountry:South AfricaProperties:154Monthly Revenue:$745.70Daily Rate (ADR):$92.44Occupancy:40.62%Regulation:Low
Rank:#24Market:Bergrivier Local MunicipalityCountry:South AfricaProperties:145Monthly Revenue:$849.16Daily Rate (ADR):$134.88Occupancy:27.97%Regulation:Low
Rank:#25Market:Breede Valley Local MunicipalityCountry:South AfricaProperties:137Monthly Revenue:$717.71Daily Rate (ADR):$99.13Occupancy:29.83%Regulation:Low
Rank:#26Market:Prince Albert Local MunicipalityCountry:South AfricaProperties:128Monthly Revenue:$717.54Daily Rate (ADR):$95.84Occupancy:28.30%Regulation:Low
Rank:#27Market:ParowCountry:South AfricaProperties:103Monthly Revenue:$517.61Daily Rate (ADR):$62.05Occupancy:35.95%Regulation:Low
Rank:#28Market:MelkbosstrandCountry:South AfricaProperties:84Monthly Revenue:$1049.26Daily Rate (ADR):$165.62Occupancy:37.34%Regulation:Low
Rank:#29Market:Matzikama Local MunicipalityCountry:South AfricaProperties:63Monthly Revenue:$270.82Daily Rate (ADR):$63.72Occupancy:23.10%Regulation:Low
Rank:#30Market:KraaifonteinCountry:South AfricaProperties:60Monthly Revenue:$451.91Daily Rate (ADR):$61.50Occupancy:40.13%Regulation:Low

Our Data-Driven Methodology for STR Market Analysis

At AirROI, our market rankings and insights are powered by a robust methodology combining comprehensive Airbnb data collection with sophisticated STR analytics techniques. We strive to provide the most accurate and actionable intelligence for short-term rental investors.

Data Collection & Scope

  • Global Coverage: We aggregate STR data from tens of millions of active short-term rental listings across platforms like Airbnb and Vrbo worldwide.
  • Real-Time Metrics: Our systems track key performance indicators (KPIs) daily, including booking rates, nightly pricing (ADR), occupancy rates, and revenue.
  • Regulatory Monitoring: We actively monitor and incorporate local short-term rental regulations, licensing requirements, and tax obligations into our market analysis.

Analysis & Ranking

  • Proprietary Algorithms: AI and machine learning models analyze booking patterns, predict seasonal demand shifts, and identify emerging market trends in the STR space.
  • Key Metric Evaluation: We evaluate markets based on a weighted combination of critical investment factors using our extensive Airbnb analytics:
    • Revenue Potential: Average Monthly Revenue and Average Daily Rate (ADR).
    • Market Demand: Occupancy Rate and booking lead times.
    • Investment Scale: Number of active properties and market growth trends.
    • Regulatory Environment: Assessed impact of local STR regulations on operational feasibility and profitability.
  • Benchmarking: Performance is benchmarked against regional and global averages to provide context for vacation rental investment potential.

Key Metrics Explained

  • Properties: The count of active short-term rental listings in the market.
  • Monthly Revenue: Average revenue generated per property per month, a key indicator for Airbnb profitability.
  • Daily Rate (ADR): Average nightly booking price.
  • Occupancy: Percentage of nights booked out of total available nights, crucial for understanding STR demand.
  • Regulation: An indicator of the local regulatory climate impacting Airbnb investment.

This rigorous approach ensures our recommendations are based on real-world performance Airbnb data and forward-looking market analysis, empowering you to invest smarter in the vacation rental market.

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