Foreshore developments to change Cape Town’s face - CNBC Africa

Foreshore developments to change Cape Town’s face

Southern Africa

by Trust Matsilele 0

Foreshore developments to change Cape Town’s look. PHOTO: Green Map

Most of the developments are expected to be on the foreshore area.

The chairman of the Central City Improvement District (CCID) Rob Kane told CNBC Africa that years of hard work were now yielding positive results.

(READ MORE: Attractiveness of the African property market)

“Business is looking at the environment and finding it stimulating as it is safe, clean and has all the amenities they need,” noted Kane.

Kane added that the next wave of developments will look at more affordable housing in or close to the city.

He noted that residential units built between 2000 and 2005 had intercepted about 5,000 people.

Developments in Cape Town started with central business people from 1999 when the city was struggling and through the formation of the city improvement district assisting with cleaning, security and marketing the nature of the city has changed over the years.

The urban development incentives currently extended by the city have driven development up providing a very material benefit to developers and owners to upgrade their buildings.

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Cape Town developments have also been aided by interventions of the South African Revenue Service's (SARS) tax incentive. 

Through the Urban Development Zone tax incentive, an intervention of SARS, developers and property owners are rewarded with a tax deduction based on a special depreciation allowance on investments.

“The city has grown into a large business employing directly and indirectly about 600 people with half of that being formerly street dwellers but now helping to improve the city,” said Kane.

He added that large investments were coming from the private sector with among others private hospitals, financial institutions and Cape Town convention centre working on redoubling their respective capacity.  

The city of Cape Town stabled the urban management partnership ten years ago to bolster the security and cleaning services that has seen the region becoming one of the best rated cities in the world.

The total value of property in the city has also been on the rise from six billion rand in 2005 to 24 billion rand in 2013.

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