South Africa is poised to enter a new regulatory era for Airbnb as the Department of Transport finalises policies that could significantly change how the platform operates in cities like Cape Town.
Andrew Schaefer, Managing Director of leading property management company Trafalgar, believes the new regulations will reshape the buy-to-let investment landscape and the broader residential letting market.
The new policy, which has been in development since at least 2023, aims to integrate Airbnb and similar platforms into the mainstream tourism industry by enforcing regulations similar to those imposed on hotels, guesthouses, and hostels.
These regulations will likely include mandatory registration with tourism boards, payment of hospitality taxes, and adherence to strict health and safety standards.
For homeowners who rely on short-term rentals for income, these new rules could mean more paperwork and extra costs.
One of the most impactful measures under consideration is a cap on the number of days a property can be rented annually through short-term platforms.
This approach has been implemented in other cities to disincentivise full-time Airbnb rentals and encourage long-term leasing instead.
Cape Town, in particular, has been a hotspot for Airbnb activity.
Recently named the Best City in the World for 2025 by Time Out magazine, it attracts millions of tourists every year.
Inside Airbnb, an independent data platform recently counted over 23,000 active Airbnb listings in Cape Town.
In contrast, only around 700 long-term rental listings were available in the entire Central Cape Town area at the start of January.
This has raised concerns among people who fight for affordable housing. They say Airbnb makes it harder for locals to find homes.
In Cape Town, long-term rental prices are already high compared to other South African cities.
A single room in a shared house now starts at approximately R4,500 per month, while even the smallest studio or bachelor apartments are priced from R5,000 per month, said Schaefer.
By contrast, Airbnb rentals can fetch anywhere from R950 to R20,000 per day, particularly in luxury areas like the Atlantic Seaboard, he added.
Cape Town is not the only city grappling with these challenges.
Many popular tourist cities have already established strict rules for Airbnb. Cities like Amsterdam, Barcelona, Berlin, London, New York, Rome, San Francisco, and Vienna have either banned or restricted short-term rentals.
In Spain, Barcelona has fined illegal Airbnb listings and established strict rules to prevent entire neighbourhoods from turning into tourist areas.
If South Africa follows suit, Airbnb hosts in Cape Town and other major cities may have to adjust their business models.
Some could transition to long-term rentals, while others may exit the market entirely.
Schaefer said this shift could benefit local tenants by increasing the supply of available housing and stabilising rental prices.
However, he stressed that it may also impact the tourism sector, as fewer Airbnb listings could drive up accommodation costs for visitors, making hotels the more dominant option once again.
As the government finalizes these new rules, Airbnb hosts, investors, and travellers will have to prepare for changes.
South Africa is poised to enter a new regulatory era for Airbnb as the Department of Transport finalises policies that could significantly change how the platform operates in cities like Cape Town.
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