A new era for Cape Town’s CBD: how mixed-use development is shaping the future

The City of Cape Town has stated its commitment to continue offering properties for sale or lease through auctions. This will be done only after a thorough internal review confirms that the properties are not required for municipal purposes and, as they become available. Whilecentral business districts(CBDs) used to be areas primarily focused on commercial uses, this is changing globally.

The long-term objective of a city should be the creation of a built environment that meets the requirements of different income and age groups, says associate professor Francois Viruly, of the Department of Construction Economics & Management at the University of Cape Town (UCT). “In the future, CBDs will be places offering a broader mixed-use experience which combines home, work and play. The sale of land by the city provides an opportunity to achieve this,” Viruly says.

Earlier this week, the City of Cape Town said in a media statement that the release of the iconicGood Hope Centreprecinct for redevelopment is a strategic move aimed at unlocking its immense economic potential, revitalising the broader precinct, and leveraging private-sector investment to boost job creation and economic growth to benefit Cape Town residents. “By releasing this site for revitalisation and redevelopment, we are giving the private sector the opportunity to develop a vibrant mixed-use precinct. “Heritage elements, including the dome, are preserved through the conditions of sale, while the surrounding land can be transformed into multiple uses, unlocking significant economic and spatial value for the inner city,’ said Alderman James Vos, Mayoral Committee Member for Economic Growth.” The key verified development information for investor due diligence includes: These parameters provide a clear foundation for feasibility modelling and redevelopment planning.

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A wide range of opportunities across multiple investment categories and strategic growth areas will be available for sale and lease: In total, about 282 000m² of land will be released, creating diverse entry points fordeveloperswith varying investment profiles, from mixed‑use precincts to industrial expansion and urban infill housing. The decision follows the City’s disposal processes, in which properties are reviewed to determine whether they are still needed for municipal operations/ purposes.

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