Giflo Property Developers, Som Group to build $35 million Cape Town office hub

Cape Town’s northern suburbs are set for a new wave of commercial expansion as Giflo Property Developers and Som Group move ahead with a $35 million joint venture to build the CapeGate Office Precinct in Brackenfell.

The 50/50 partnership reflects rising demand for modern office space closer to where people live, as companies reassess long-standing ties to the Cape Town central business district. 

The project, scheduled for completion in 2027, introduces a P-grade office development into one of the Western Cape’s busiest retail and residential corridors.

It also signals a gradual shift in how business districts are forming, with more developers betting on mixed-use precincts anchored by transport access, retail activity and housing growth. 

The development follows Hyprop’s decision to grant exclusive rights for the precinct, positioning CapeGate as a stronger mixed-use hub along the N1 corridor.

Located on Cape Gate Boulevard, the site sits within reach of Bellville and central Cape Town, where traffic congestion and longer commute times have pushed both employers and workers to consider alternatives.

Growing demand for local office space 

Giflo director Michiel Scharrighuisen said CapeGate has already become a key retail destination for surrounding suburbs, including Brackenfell, Kraaifontein and Durbanville.

He said the office component responds to a practical shift in commuting patterns as more people live and work within the northern corridor. 

“Businesses are following where their employees already live,” Scharrighuisen said.

He added that CapeGate’s mix of retail activity and infrastructure makes it a natural fit for companies seeking accessibility and visibility outside the city center.

Design and layout of the precinct 

The CapeGate Office Precinct will include three office buildings arranged around landscaped courtyards, with rooftop terraces, pedestrian links and structured parking integrated into the wider retail environment.

The first phase, Block A, will deliver 5,774 square metres of four-storey office space. 

Rental rates are set at $17.35 per square metre, with tenants offered fit-out allowances of up to R1,200 per square metre.

The buildings will feature modern HVAC systems, controlled access using biometric technology, 350-lux lighting standards and smoke detection systems, alongside a parking ratio of four bays per 100 square metres.

Residential growth supporting commercial demand 

Som Group director Coenie Bezuidenhout said sustained housing growth across Durbanville, Brackenfell, Kraaifontein and Joostenberg Vlakte is reshaping demand for nearby office space.

He said rising property activity has brought in younger households and hybrid workers looking for shorter commutes and more convenience. 

Cape Town residential prices have increased by about 9.1% annually into 2026, according to industry estimates, reflecting steady demand in the northern suburbs.

With more than 40 residential developments active in the area, CapeGate is increasingly functioning as a combined retail and business hub within the Western Cape’s expanding property landscape.