Business growth and infrastructure in the Cape CBD in South Africa is outpacing other metros across South Africa, with the proposed construction worth almost R8 billion scheduled to be rolled out in the city over the next five years.
The investment into new developments has significantly increased. Additionally a total of US$126.9 million has been set aside in the past year for construction within the 1.6km2 central city areas.
A total of fourteen major buildings in the CBD will either be renovated, expanded constructed from scratch.
An additional five buildings are at the planning stage and two more are proposed for a facelift.
Currently all the property in Cape Town’s CBD is now valued at about US$1.6 billion, four times as much as 10 years ago.
The Central City Improvement District (CCID) on Tuesday released its fourth State of the Cape Town Central City Report on, highlighting last year’s major developments in the inner city. Rob Kane CCID chairman said the report affirmed the continued improvement of investment confidence in the CBD. “The public and private sectors play a huge collaborative role in driving this economy to succeed evidenced in the billions of rands that have come into the area in both buildings and infrastructure.”
Currently the CBD accounts for 25% of the metropole’s economy and around 30% of its workforce. Kane said the estimates given by the CCID were ‘conservative’ pending of announcement of costs from a number of other developments. Out the new developments still under way, R1.76bn is private sector investment, while the public sector is investing US$7.6 million, mostly to renovate existing government buildings such as the Iziko South African Museum in the Company’s Garden together the Cape Town station.
86% of the businesses which took part in online business surveys used to prepare the report said they would continue doing business in the CBD while 30% were contemplating of expanding their operations in the central city.
But the ongoing property development is an indication that there is a move away from development squarely for commercial and business use. Hotel accommodation and residential units worth US$108.5 million are also under construction.
The four hotels under construction are expected to add 1 400 beds in the CBD by next year while the two Tsogo Sun hotels will add 500 rooms. The Triangle House is to be refurbished into a Radisson Blu hotel and is expected to give rise to 11 floors of five star hotel and an additional 11 floors of luxury apartments. 200 more residential units will be built in the inner city in the next year.
These residential properties are now priced at an average US$2,374 per m2. Carola Koblitz, CCID communications manager and report author expressed concerns about the affordability of property in the inner city and, over the CCID would be engaging government to discuss increasing the residential property for lower income groups in the city.
