What Is the Average Price of an Airbnb in Cape Town? (The Truth)

The “average price of an Airbnb in Cape Town” is a myth. A single figure is practically useless for investment planning because rates depend entirely on what you offer and when. Understanding these factors is the real key to determining your property’s value.

Forget the “Average” – Focus on These 4 Factors

Thinking about the average is the wrong approach. It’s like asking for the average price of a car. A small hatchback is not a luxury SUV.

Instead, your pricing strategy needs to look at four specific things. These elements work together to determine your property’s nightly rate and overall earning potential.

1. The Season: Cape Town’s Biggest Price Driver

Cape Town has distinct seasons. Your price must reflect this. The seasonal rental rates can easily double or even triple depending on the time of year.

Peak Season (December – February): This is summer. It’s hot and sunny. Expect maximum demand and the highest prices, especially around Christmas and New Year.
Off-Season (May – August): This is winter. It’s quieter. You will need to lower your rates significantly to attract guests and maintain a good occupancy.
Shoulder Seasons (March – April & September – November): These are the sweet spots. The weather is often beautiful, and you can still achieve strong rates without the intense competition of peak season.

2. Your Suburb: Location is Everything

Location drives prices. A sea-view in Camps Bay commands far more than a Woodstock flat. Top-earning areas include the Atlantic Seaboard (Clifton, Bantry Bay), V&A Waterfront, and City Bowl. Proximity to the beach, Table Mountain, or popular dining directly impacts what you can charge.

3. Your Property Type & Size

Size dictates price. A compact studio apartment suits solo travellers or couples, naturally commanding a lower nightly rate.

Conversely, a large villa with a private pool caters to families and earns significantly more. You must compare your property to similar listings in your immediate area, rather than a vague city-wide average.

4. The Amenities Guests Pay More For

The little things make a big difference. Guests are willing to pay a premium for comfort and convenience. This could also make them a luxury holiday rental. A property with these features can set a higher average daily rate (ADR).

Secure off-street parking
A swimming pool or outdoor space
Fast, uncapped Wi-Fi
Air conditioning
Excellent security features
A stunning view of the mountain or ocean

What Can You Actually Expect to Earn?

Let’s get practical. A modern apartment in Sea Point or a house in Constantia will see rates fluctuate drastically. Your nightly pricing in January can easily be more than double what the same property commands during the winter months.

Ultimately, your total earnings depend on your occupancy rate. To maximise your rental income potential in Cape Town, you must find the perfect balance between a high nightly rate and a full calendar, which is a specific target where most owners get stuck.

The Smart Way to Price Your Property

Setting a static price is a costly mistake. The professional standard is dynamic pricing, where rates update daily based on:

Local demand fluctuations: Capitalising on high-traffic periods.
City events: Raising rates for concerts, festivals, or conferences.
School holidays: Adjusting for family travel peaks.
Booking lead time: changing prices based on how far in advance a guest books.

Managing this alone is complex. For owners wanting to maximise returns, CTHA offers the solution. We use specialised software to ensure your price is always optimised.

Partner with CTHA to Maximise Your Earnings

Stop guessing. Start earning. Managing dynamic pricing, guests, and cleanings is a full-time job.

CTHA handles everything. We provide a complete short-term rental management solution, from professional photography to expert pricing strategies. Get a clear, data-backed projection of your potential earnings—not a vague average. Contact CTHA today for a free evaluation.

FAQs

Is Airbnb profitable in Cape Town?

Yes, if managed correctly. Profit relies on location, property quality, and smart pricing adapted to the city’s strong seasonal demand.

What is the best area to Airbnb in Cape Town?

High-income areas include the Atlantic Seaboard (Camps Bay, Clifton, Sea Point), City Bowl, and V&A Waterfront due to their proximity to tourist attractions.