The growing appeal of Cape Town for digital nomads and remote professionals has seen the city ranked among the world’s 50 best cities for remote work.
The Mother City has secured 42nd place in the International Workplace Group (IWG) 2026 Work From Anywhere Index.
The annual ranking evaluates cities based on factors that influence flexible working lifestyles, including Internet connectivity, climate, transportation, accommodation, cultural attractions, dining options, and the availability of flexible workspaces.
Bangkok claimed the top spot in this year’s index, followed by Tokyo in second place and Barcelona in third.
Cape Town’s inclusion highlights its emergence as a regional hub for flexible work, supported by continued improvements in digital infrastructure, a relatively affordable cost of living compared with many global capitals, rich cultural offerings, and an expanding network of coworking and flexible office spaces.
IWG released the rankings alongside new global research indicating that work-from-anywhere (WFA) policies have become an increasingly permanent feature of modern workplaces.
According to the survey, 51% of employees said their employers now offer flexible working arrangements.
The survey found that 90% of respondents reported a better work-life balance after adopting flexible working arrangements. Eight in 10 employees said remote and hybrid work had boosted their productivity, while the same proportion indicated they would favour job opportunities that offer flexible or work-from-anywhere policies. In addition, 62% said they would consider changing employers to secure greater workplace flexibility.
The findings mirror broader trends in the Cape where sectors such as technology, financial services, and creative industries are increasingly adopting hybrid and remote work models, enhancing the Cape’s attractiveness to skilled professionals and freelancers.
The study also found that remote work is reshaping travel behaviour worldwide. Nearly 48% of respondents plan to extend vacations or short trips in 2026 by working remotely while away, while 43% said they have already worked from leisure destinations without using annual leave.
The research found that employees are embracing location-flexible work for a variety of personal and professional reasons.
More than half (54%) said they use flexible work arrangements to reduce burnout and improve their mental well-being, while 53% value the opportunity to spend more time with family and friends. Another 52% said remote work allows them to make better use of their annual leave, and 51% view the flexibility as a practical way to manage rising living costs by extending trips and enjoying longer stays at a lower overall expense.
Reliable, high-speed Internet ranked as the most important factor when choosing a remote work destination, with 38% of respondents identifying connectivity as their top priority – a category in which South Africa has strengthened its position through continued investment in telecommunications and digital infrastructure.
“South Africa is one of IWG’s most established and strategically important markets in Africa and the company plans to expand its regional network to 150 flexible workspace centres by 2030,” says Carolyn Elliman, country manager, IWG South Africa. Globally, IWG operates more than 5 000 flexible workspace locations across over 120 countries.
Commenting on the findings, IWG founder and CEO Mark Dixon says demand for flexible working continues to rise as more professionals combine work with travel or adopt digital nomad lifestyles.
He adds that advances in workplace technology and the widespread adoption of flexible office solutions have given employees greater freedom to choose where and when they work, while companies increasingly view hybrid and remote work as long-term strategies for improving productivity, reducing burnout, and attracting talent.