Cape Town inner city development opportunity lies in regeneration
Divaris has a bold vision for property in Cape Town. “The biggest opportunities lie in regeneration: reimagining aging buildings and overlooked sites into vibrant, relevant spaces that meet the needs of the next generation of urban users,” says Divaris, a CFA Charterholder.
But it is not just her vision that has got her noticed.
Eight years ago, Sarah Divaris was an ambitious UCT Business Science graduate who’d just started working at Boxwood Property Fund. “The company was in its early stages, but it had a big vision,” she recalls. “From the beginning, I was involved in all aspects of the business”.
Today Boxwood Property Fund is one of Cape Town’s leading property investors, investing in retail, commercial and industrial spaces. It has invested over R4.5bn, of which R1.4bn has been into the Cape Town city centre.
Creativity and confidence in the property sector
Divaris’s mettle was tested with Boxwood’s first acquisition in 2018 when they purchased a portfolio of office buildings from Rebosis Property Fund for R888m. But her favourite project to date has been driving the transformation of the old Shell House in Lower Burg Street into a vibrant, community-inspired space, now aptly called The Box.
“We redeveloped the ground floor into a public food market, featuring food pods run by entrepreneurs, communal seating, outdoor workspaces and free Wi-Fi, which has proved to be a hit with both tenants and the greater public.”
She says it is this type of creativity that drew her to the property sector.
“It’s one of the few industries where you can merge numbers with imagination, and where the impact of your work is both tangible and lasting. We’re not just developing buildings - we’re shaping skylines, communities, and the environments in which people live, work and connect,” she says.
Divaris believes it’s vital to have younger people in senior leadership and she is passionate about fostering entrepreneurship in South Africa. One of the biggest lessons she has learnt is the importance of confidence.
“This is especially as I’m often the youngest person in the room.” But confidence in property isn’t about being bold for the sake of it, she maintains. “It’s about being prepared, informed and grounded in your research.”
Since 2017, her role has grown significantly. “Today, I oversee a wide range of projects that have helped grow the business into a diversified property portfolio worth R4.5bn,” she says. “It’s been a journey built on vision, grit and a relentless focus on value creation.”
Cape Town property trends
Her position at Boxwood means she can keep her finger on the pulse of CBD property trends.
“Cape Town is attractive because of its efficient infrastructure, effective governance and lifestyle benefits,” she asserts. “These factors have made it a magnet for both local and international investors. We have a great municipality to thank for this.”
This upward momentum is reflected in numbers, too. According to the State of Cape Town Central City Report 2023 – a year in review (SCCR), published by the Cape Town Central City Improvement District (CCID) and released last year, in 2023, the value of property development in the city centre surged to over R7.3bn, more than double the figure from 2022.
“We’re seeing fresh demand for quality space, stronger fundamentals and a maturing mixed-use environment,” comments Divaris. “I expect this trend to continue, with developers, businesses and residents increasingly committing to the CBD as a dynamic, future-focused hub.”
She gives credit to the CCID, whose work over the past two decades has been instrumental in transforming the CBD’s crime and grime into a vibrant, world-class urban centre. “Their public-private partnership model continues to set the standard for what a safe, clean, inclusive and investment-ready city core can look like.”
Sustainability and changing tenants’ needs
A clear shift Divaris is seeing is the move away from purely commercial buildings to flexible, mixed-use spaces that combine resource efficiency and technology. “Tenants are no longer just looking for square footage,” she says. “They want environments that prioritise sustainability, wellness and a sense of community.”
She says this is particularly relevant in Cape Town’s CBD, where CCID data shows ongoing demand for residential and mixed-use developments, as evidenced by the 30 new or ongoing projects recorded in 2023. “We’ve prioritised wellness through features like balconies, atriums, bicycle storage and shower facilities—making it easier for tenants to balance productivity with wellbeing.
“On the sustainability side, we’re reactivating rooftops, introducing greenery, and repurposing underused areas. We have achieved 4 or 5 Green Star ratings on 70% of our portfolio.”
She’s also pleased that more workers are coming back to the office. “There’s a definite return to the CBD,” Divaris states.
The latest statistics as per SAPOA’s Q4 2024 Office Vacancy Research Report shows the city of Cape Town had the lowest overall office vacancy rate of 6.5%.
“The vacancy rate of all the city’s office nodes are now below where they were in the middle of 2022 when the sector’s overall vacancy rate peaked.
"This signals renewed demand and a growing recognition of the value that in-person work offers.”
While hybrid work is here to stay, she believes companies are increasingly seeking high-quality office space that supports collaboration, flexibility and wellness.
“The office is no longer just a place to work – it’s a space for connection, innovation and culture,” she insists. Accordingly, Boxwood redesigns its buildings with this vision in mind.
“Our spaces are community-driven and experience-led, featuring break-out zones, natural light, outdoor access and lifestyle-focused design,” she says. “We aim to create environments that people genuinely want to be in – not just because they have to, but because they choose to,” she concludes.