Future Forecast: These are Cape Town's Top 5 Planned Developments
Category Commerical Property News
Cape Town, known as the 'Mother City', takes care of 64% of the Western Cape's population. Home to a huge shipping, industrial and tourism industry, Cape Town's property market faces increased pressure to meet industry demands.
In recent years, we have seen serious socio-economic issues arise within the city, the biggest being the shortage of water and the effects this has had on households, businesses and tourism due to the imposed restrictions that were enforced to control usage within the province.
However, despite the strain the city has had to endeavor, this has not affected its property development market. This is only set to increase as a concerted effort is being made by government and the private sector to ensure there is a strategic shift for the Western Cape that will only uplift and increase development to create jobs and enrich the local economy, reports BusinessLIVE. The aim is to: "lift growth and job creation by supplying the missing link in previous economic strategies being direct engagement between the government and the private sector".
What are the top five planned new developments for the city in the next three years?
- According to the Cape Town Central City Improvement District's annual year in review report, over 48 developments were in the pipeline in Cape Town CBD in 2017 - adding to a conservative investment value of R14.2 trillion.
- The biggest and probably the most exciting new development is the residential Zero-2-Zero Tower. This building will boast 570 apartments, 760 parking bays and 7,000m2 of retail space on completion in a year from now. It is set to be the tallest building in Cape Town, reaching 148 metres high with 44 storeys.
- There will also be much needed airport upgrades which will include a much bigger international terminal, to welcome all our overseas visitors, a new realigned runway worth R3.93 billion which will achieve the runway realignment that will in the future allow for the expansion of the terminals; as well as the refurbishment of the domestic arrivals terminal. According to an article on 2OceansVibe, these upgrades are planned for "the next five years, with more than R7 billion in investment expected to take place over this period".
- Among these hugely required and beneficial changes the city will undergo, there are plans to develop a new skyscraper - modelled after a Rubik's cube, which will offer premium office space and luxury apartments. There are also plans for a Ratanga redevelopment. In 2018 we saw the much-loved Rantanga Junction close down, but now the space is set to be ultilised for residential apartments, a retirement component, a hotel, restaurant and offices.
- Lastly - earmarked for 2023, the city has set aside land to harvest and grow medical cannabis. This project, as imagined, has a huge billion rand price tag attached to it, however, predictions indicate 250 jobs created, as well as a huge avenue for economic growth and development.
How does Cape Town remain investment affable?
The province as a whole has historically enjoyed higher levels of growth, job creation and business confidence than the rest of the country.
David Maynier, Western Cape finance & economic opportunities MEC told BusinessLIVE that this could be attributed to the fact that the provincial government "has created an enabling environment for business through red tape reduction; supported high-growth sectors such as oil and gas, agri-processing and tourism; focused on promoting investment and trade; improved air access; and invested in infrastructure".
"Over the past decade, the province's growth rate has averaged 2.4% against 2.1% for the rest of SA. Employment in the region has also surpassed the national rate with an average annual growth rate of 2.4% compared with the national average of 1.6%. As of the second quarter of 2019, the province's unemployment rate was 20.4% compared with 31.1% for Gauteng and 29% for the country as a whole," adds Maynier.
These statistics clearly reveal that there is significant and consistent development within the area and mainly in the city of Cape Town, showing remarkable potential and performance. In addition, the city still remains one of the key tourist destinations in SA, promoting foreign investment.
If you are looking for modern offices, get in touch, get involved and become part of this rewarding city by contacting one of our Office Place brokers and see what's on offer in Cape Town.
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Author: OfficePlace
