Many Stellenbosch businesses are being forced to move further out of the town centre, with increasing rent prices being the driving force, according to Gerhardi Odendaal, a property consultant at Ontgin in Paarl.
“There is definitely an issue of supply and demand. What we have seen is that there is severe pressure – central Stellenbosch has very little available commercial space, and when stuff does come up, it is taken up very quickly,” said Brenda Padayachee, head of market research at Rainmaker Marketing.
Research conducted by Padayachee and her team, which compared listings in Central Stellenbosch two years ago with current ones, showed that there has been a 96 – 97% take-up rate. This means that landlords are in a position to make their prices more expensive, she explained.
“Based on the latest available data as of July 2026, the adult population of Stellenbosch Town is approximately 75 115, representing growth of approximately 34% since 2011,” she said.
Ryneveld Street, Stellenbosch, is known for being home to coffee shops and boutiques that have been a part of the town for many years. Rising rental prices mean that, for some businesses, the rent prices push them to relocate, said Gerhardi Odendaal, property consultant at Ontgin in Paarl. PHOTO: Britannie Hohls
“The market is a market where supply has not kept up with how much the town has grown overall,” she explained.
The street-side rental prices in Stellenbosch are a rising trend, said Odendaal.
“Greeff Christie’s [a real estate company] puts prime retail on streets like Church Street at roughly R450 to R600 per square metre [per month],” said Odendaal.
Mood Coffee Bar, which was situated on Ryneveld Street, conducted its last day of business on the street on 26 September, said Yandisa Lupondo, a barista.
Mood will now be run from its other branch on Andringa Street. One of the factors behind the move is the price of rent, said Lupondo.
“If you can’t pay, there will be somebody else that will,” said Johan Cronje, co-owner of Mood. He said that the next step is corporate businesses taking over the spaces in town that can afford to cover the rent, no matter how high.
Odendaal confirmed that this pattern can be seen in Stellenbosch
“The international shoe brand Bellas opened in a storefront that Mason’s Bike Inn had occupied for 26 years, and the bike shop moved to a unit behind it, off the alley,” he said.
Stellenbosch’s population has grown by about 35% between 2011 and 2024 from 55 886 to 75 395 people, according to Gerhardi Odendaal, a property specialist from Ontgin in Paarl. Most of the newfound residents who have moved from other places in the Western Cape, together with students, and wealthy residents that are all chasing the same few addresses, said Odendaal. PHOTO: Britannie Hohls
“Independant [businesses] shift to side-streets, upper floors and courtyards, or they trade at markets rather than [paying] rent,” said Odendaal. “The ones that stay put on the main streets usually own their building.”
Republique Café recently relocated to Millsquare on the corner of Andringa and Plein Street. This happened as a result of their lease being renewed and the business looking to expand, said Simnikiwe Mkhize, one of the directors and shareholders.
“Even though we have a bigger space, we will be paying around 10 grand cheaper,” said Mkhize.
Rental costs are not the only expense for retailers. Added to that, rates and tariffs are also increasing, according to Odendaal.
“Being a part of the character of Stellenbosch, I think if the character only works for larger brands, the town will definitely risk losing what makes it special,” said Padayachee. She added that it could mean people having to get transport or drive to services that used to be within walking distance in Stellenbosch Central.
Mood Coffee Bar on Ryneveld Street had its last day on 26 September. In Stellenbosch, the rental property market is heavily influenced by supply and demand, said Johan Cronje, Mood’s co-owner. PHOTO: Britannie Hohls