Fibonacci development set to attract property investors and to aid CPT rental shortage

• Real estate reports suggest that suburban property prices will continue to rise due to high demand and limited supply. From 2023 to 2024, Cape Town saw an average property price increase of 7.7%.  This upward trend is expected to continue into 2025, with forecasts suggesting a further rise of 3% to 7% in property values.^[1]
• With nearly 5,000 students from over 100 countries at the University of Cape Town (UCT), 18% of the student body is international, creating a buzz around housing needs. Coupled with the government’s plan to increase university enrolments to 1.6 million by 2025, this suggests the demand for student housing will keep rising, making it a promising time for property investors.^[2]

Cape Town | 12 February 2025: The residential rental market this year presents encouraging news for investors looking to purchase property with great returns, especially those in the Western Cape.  According to the latest TPN Vacancy Survey Report, vacancy rates for rental properties have reached their lowest levels since the survey’s inception in 2016, with the Western Cape boasting a record-low vacancy rate of just 1.07% in the third quarter of 2024, marking the province’s lowest vacancy rate ever. 

The Western Cape’s reputation as the country’s best-run province, with efficient governance and infrastructure, has made it an attractive destination for tenants seeking stability.  The influx of tenants into the Western Cape has naturally led to higher rental prices as landlords and property investors capitalise on the demand-supply imbalance.  Rental yields have slightly increased, averaging 5.2% in 2025 in Cape Town^[3], thanks to rising rental prices and stable property values.

The demand for student housing in Cape Town is surging, driven by a notable increase in UCT’s enrolment, which reached 28,000 students in 2023. However, only 8,400 students secured spots in UCT residences, creating a substantial gap in housing availability. This shortage presents a lucrative opportunity for property investors, especially in neighbourhoods like Mowbray, Claremont and Observatory, all of which are conveniently located near UCT.

The Fibonacci development in Mowbray, Cape Town, redefines student accommodation in Cape Town, offering thoughtfully crafted spaces to support every aspect of student life. From sleek studio apartments to spacious two-bedroom units, each apartment combines practicality with modern design, making it not only an ideal living space but also an incredible investment opportunity in one of the city’s most sought-after locations, just 1.5km from UCT.

“The demand for specialised student accommodation in South Africa currently far outstrips supply, making The Fibonacci an attractive investment for both investors and parents of UCT students alike,” remarks Grant Elliott of the Heriot REIT, Developer for the Fibonacci development.

Situated at 23 Main Road, Mowbray, the Fibonacci is ideally located near top universities, business hubs, and lifestyle destinations, providing residents with unmatched convenience. Its central position ensures easy access to academic institutions, workplaces, and a range of amenities for a connected and fulfilling lifestyle. 

It’s a mere stroll down to the Mowbray Jammie Shuttle stop, a UCT shuttle service which provides transport between various locations in Cape Town and UCT’s campuses, making it accessible for students living in Mowbray to reach the university.  The same station is also part of the Metrorail network, providing easy access to the city centre, other suburbs, shopping centres and entertainment.

The Fibonacci offers world-class amenities from a shared community rooftop terrace, kitchen and dining area, relaxation area, study centre, a co-working space, quiet zone and gym, all designed to support student well-being, community building, and personal growth.

There are three investment options for sale: studio units, one-bedroomed and two-bedroomed apartments.  Studio unit sizes range from 20m² to 25m² and are priced from R1 240 000; one-bedroom apartments (36m²) start at R2 165 000 and two-bedrooms apartments (31m² -37m²) start at 1 890 000.

Thoughtfully crafted interior and exterior spaces encourage relaxation, social interaction, and productivity, creating an environment where students can truly thrive. From wellness-focused communal areas to essential retail services, every detail has been curated to enhance the student experience.

The development boasts 24-hour manned security, biometric access control systems, CCTV surveillance covering all entrances and key common areas, vehicle and movement monitoring and digital access control for owners / tenants at all gates.

According to the developer for Fibonacci, “Buying off-plan allows you to save significantly by avoiding transfer duty. In addition, there are two very attractive tax incentives on offer with this development – the Urban Development Zone (UDZ) Tax Incentive, a South African government initiative designed to encourage private sector development in designated urban areas, as well as the Section 13sex, a tax incentive aimed at encouraging the construction or purchase of residential units for rental purposes.” 

Don’t miss your chance to secure a state-of-the-art investment apartment in one of Mowbray’s most sought-after developments. Join us for the sales launch on Wednesday 19 February 2025 at 6pm to take advantage of the sectional title purchase of either a studio, one-bedroom or two-bedroom apartment, with only a 10% deposit required (no transfer duties applicable). The estimated completed date of the Fibonacci development is Q1, 2027.

For more information about investing in the Fibonacci development, please visit https://www.thefibonacci.co.za, contact Revo Property (+27 63 904 1427) or Flyt Property (+ 27 83 258 6316).